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Change from Outlook for Desktop to Exchange Online?

We have 2 x Microsoft 365 Business Standard licences. Currently both users use the desktop (local) version of Outlook 365. Currently we do not have Exchange Server. At the moment, email is hosted with a third party supplier.

One of the users would like to stop using the desktop version and run Outlook online instead. They will also need calendars etc. 

The Business Standard licence includes Exchange Online Plan 1. Will this give them what they want, without having the desktop version installed, or do they need to have Exchange Server and OWA.

(It would help enormously if MS didn't call every email offering 'Outlook'!)

Thank you for any help.

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