Microsoft 365 Business: Which Plan Fits Which Business?
Three plans that look similar on paper. The difference comes down to two questions: does the person need installed Office apps, and do the devices have to be managed centrally?
In short: Business Basic includes email, Teams, cloud storage and Office in the browser only. Business Standard adds the installed desktop apps. Business Premium builds on that with device management, advanced threat protection and identity protection. All three are available for up to 300 users.
On July 1, 2026, Microsoft raised its prices: Business Basic went up by around 17 percent, Business Standard by around 12 percent, and Business Premium stayed the same. Existing customers pay the old prices until their next renewal. The effect: the price gap between Standard and Premium has narrowed, which tips the math in favor of Premium.
What all three plans have in common
- Exchange mailbox with your own domain
- Microsoft Teams
- OneDrive with 1 TB of storage per user
- SharePoint for shared files
- Office apps in web and mobile versions
- Since July 2026: Copilot Chat built into the Office apps
So if you only need email, Teams and file storage, Basic covers everything. In many businesses that applies to more people than you'd first think.
The key differences
| Basic | Standard | Premium | |
|---|---|---|---|
| Office in the browser | yes | yes | yes |
| Installed Office (desktop) | no | yes | yes |
| Device management (Intune) | no | no | yes |
| Advanced threat protection | no | partly | yes |
| Identity protection (Entra ID P1) | no | no | yes |
| Remote wipe of lost devices | no | no | yes |
Basic: for pure cloud work
A good fit for staff who work mostly in the browser: warehouse, production, reception, shift workers, temporary staff. Also for businesses that work entirely in the cloud with no local infrastructure.
The limits show quickly: anyone who regularly edits larger Excel files, needs to work offline or uses add-ins in Outlook won't get far with the browser version.
Standard: the everyday office plan
For everyone who works with Word, Excel, PowerPoint and the Outlook desktop app every day. It can be installed on up to 15 devices per user (five computers, five tablets, five phones).
A useful tip for assigning plans: you don't have to guess who needs which apps. The Microsoft 365 admin center provides a usage report showing which desktop apps were actually opened in the last 30 days. That data is a better basis for decisions than assumptions based on someone's position in the org chart.
Premium: when devices and access need to be managed
Premium includes everything in Standard and adds three things that matter in day-to-day work:
- Intune (device management): roll out policies centrally, enforce encryption, wipe a lost laptop remotely. Practically indispensable for businesses with field staff or remote work.
- Advanced threat protection: attachments checked in an isolated environment, links checked at the moment of the click, protection against impersonation.
- Entra ID P1: conditional access, such as a rule that sign-ins from abroad need extra confirmation, or that only managed devices can access company data.
The calculation many people overlook: if you use Standard and buy antivirus, device management and email security separately, you often end up close to the Premium price, with more admin work and several vendors. It's worth running this comparison before your next renewal.
The mistake almost every business makes
Everyone gets the same plan. It's convenient and almost always either too expensive or too insecure, usually both at once, in different places.
A mix makes more sense: Basic for people who only need email and Teams. Standard for the office. Premium for everyone who handles sensitive data, works on the go or has elevated permissions: management, accounting, field staff and whoever looks after IT.
Four levers that save money right away
- Deactivate former employees. Almost every tenant still has licenses running for people who left long ago.
- Shared mailboxes instead of individual licenses. Addresses like info@, accounting@ or jobs@ don't need their own license; shared mailboxes are free.
- Pay annually instead of monthly. It saves noticeably compared with monthly billing.
- Match plans to actual usage. The usage report mentioned above shows who really opens the desktop apps.
What you need on top, whichever plan you choose
Two things that none of the three plans covers adequately:
A backup of your own. Microsoft guarantees that the platform is available, not that content deleted months ago can be restored. Exchange, SharePoint and OneDrive need a separate backup.
Multi-factor authentication, switched on consistently. It's available in every plan, but it only protects you if it actually applies to every account, especially administrator accounts.
Frequently asked questions
What's the difference between Microsoft 365 Business Standard and Premium?
Business Premium includes everything in Business Standard and adds device management with Intune, advanced threat protection and identity protection with Entra ID P1. Standard is purely a productivity plan; Premium is also a security and management plan.
Is Microsoft 365 Business Basic enough for a small business?
Basic is enough for anyone who works mainly in the browser and doesn't need installed Office apps. If you work with Word, Excel or the Outlook desktop app every day, or need to work offline, you need at least Business Standard.
How much did Microsoft 365 prices rise in 2026?
On July 1, 2026, Business Basic went up by around 17 percent and Business Standard by around 12 percent. Business Premium stayed the same. Existing customers pay the old prices until their next contract renewal.
Can you mix different Microsoft 365 plans in the same company?
Yes, and it's usually the most cost-effective option. A common split is Basic for staff who don't need desktop Office, Standard for office staff and Premium for management, accounting and mobile employees.
