If you're setting up Microsoft 365 for the first time, or wondering whether you're on the right plan, the choice between Business Basic, Standard and Premium can feel confusing. The names don't tell you much, and Microsoft's comparison pages are full of product names most business owners have never heard of.
This guide explains what each plan gives you in plain English, who it suits, and the questions worth asking before you buy or upgrade.
The short version
All three Business plans are designed for organisations with up to 300 users. Each one builds on the one before:
- Business Basic gives you professional email, file storage and online versions of the Office apps.
- Business Standard adds the full desktop apps (Word, Excel, PowerPoint and Outlook) that you install on your computer.
- Business Premium adds stronger security and device management on top of everything in Standard.
So the real question is: do your staff need desktop apps, and how seriously do you need to protect your data and devices?
Microsoft 365 Business Basic
Business Basic is the entry-level plan. It includes:
- Business email through Exchange Online, using your own domain name
- OneDrive cloud storage for each user
- SharePoint for shared company files and intranet sites
- Web and mobile versions of Word, Excel, PowerPoint and Outlook
- Teams for chat, calls and video meetings (in the UK, some plans are now also sold without Teams, so check which version you're buying)
What it doesn't include is the installable desktop Office apps. Staff work in a web browser or on mobile apps instead.
Who it suits
Basic works well for staff who mainly need email and light document work, such as frontline workers, volunteers, care staff using tablets, or businesses that already have desktop Office licences from elsewhere. For people who spend all day in spreadsheets or complex documents, the browser versions can feel limiting.
Microsoft 365 Business Standard
Business Standard includes everything in Basic, plus the full desktop versions of the Office apps. Each user can install them on up to five PCs or Macs, five tablets and five phones. It also adds a few extras, such as Microsoft Bookings for appointment scheduling and tools for running webinars.
Who it suits
Standard is a popular choice for typical office teams who rely on Excel, Word and Outlook every day. If your staff are used to working in desktop Office, this is usually the minimum they'll be happy with.
The catch is that Standard's security is fairly basic. You still get important protections like multi-factor authentication and spam filtering, but you don't get the tools to properly manage and secure the laptops and phones your team uses.
Microsoft 365 Business Premium
Business Premium includes everything in Standard, plus a substantial set of security and management tools. The main additions are:
- Microsoft Intune, which lets you manage and secure company laptops and phones, push out settings, and remotely wipe a lost or stolen device
- Microsoft Defender for Business, a proper endpoint protection tool that goes beyond standard antivirus
- Defender for Office 365, which adds stronger protection against phishing emails and malicious links and attachments
- Conditional Access, which lets you control how and where people sign in, for example blocking logins from unmanaged devices or unusual locations
- Information protection tools for labelling and protecting sensitive documents
- Email archiving for longer-term retention
Who it suits
Premium is worth serious consideration if you handle personal or sensitive data, have staff working from home or on the move, need to meet requirements such as Cyber Essentials, or simply want to reduce the risk of a cyber attack. Many organisations we speak to are surprised to learn that tools they would otherwise pay for separately are already included.
How to choose
A few practical questions will usually point you in the right direction:
- Do your staff need desktop Office apps, or will web and mobile versions do?
- Do people use laptops or phones outside the office?
- Do you store client, patient, pupil or financial information?
- Would a lost laptop or a successful phishing email cause you serious problems?
- Do you have, or want, Cyber Essentials certification?
If you answered yes to several of the security questions, Premium is often the sensible choice.
You don't have to pick just one
It's worth knowing that you can mix plans within the same organisation. For example, office staff might be on Premium while occasional users are on Basic. That said, mixing plans can create gaps in your security, so it's worth thinking it through carefully.
Schools and charities
Schools and eligible charities may be able to access separate education or nonprofit versions of Microsoft 365, sometimes at a reduced cost. These have different names and features, so it's worth checking eligibility before buying a standard Business plan.
What about Copilot?
Microsoft's AI assistant, Copilot for Microsoft 365, is a separate add-on rather than part of these plans. If you're interested in it, choose your base plan first and treat Copilot as a separate decision.
Buying the licence is only half the job
One thing we see often is businesses paying for Business Premium but never switching on the features they're paying for. Intune, Defender and Conditional Access are powerful, but they need to be set up properly to actually protect you. Equally, a poorly planned migration from an old email system can cause disruption you don't need.
A good IT partner can help you choose the right plan, move your email and files across safely, configure the security settings and keep everything running smoothly afterwards.
Need a hand deciding?
If you're not sure which Microsoft 365 plan is right for your business, school or charity, we're happy to talk it through with no obligation. Get in touch with the Cloud 4 Sure team or book a free IT health check, and we'll look at how you work today and recommend the plan that fits.