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Choose the right Microsoft 365 plan for your business needs and budget.
Microsoft 365 offers powerful productivity and security tools, but with multiple plans and add-ons, choosing the right combination can be confusing. This guide helps you understand what each plan includes, what your business actually needs, and where to invest for the best return.
We'll cut through Microsoft's marketing to give you practical recommendations based on business size, security requirements, and budget.
The short answer for most SMBs: Microsoft 365 Business Premium. It includes the desktop apps, advanced security features, and device management that businesses need. The price difference from Business Standard is worth it for the security alone.
Here's what each Microsoft 365 business plan includes and costs.
Web and mobile apps only. Good for users who just need email and basic collaboration.
Adds desktop apps. The traditional Office experience for knowledge workers.
The complete package with advanced security. What most businesses actually need.
For larger organisations needing unlimited archive and advanced compliance.
Match your business profile to the right Microsoft 365 configuration.
Small team, straightforward needs. You want email, file sharing, and basic collaboration without complexity.
If most staff work from a single location and don't handle sensitive data, Business Standard works. If you have remote workers or handle any client data, go Premium.
Business PremiumMultiple departments, mix of roles. You need consistent security across the organisation and ability to manage devices remotely.
Business Premium gives you the security baseline and device management you need at this scale. The Intune integration alone is worth the premium.
Business PremiumLaw firms, accountants, consultants handling confidential client information. You have professional obligations around data protection.
Business Premium provides the encryption, access controls, and audit capabilities you need. Consider E3 if you need unlimited email archive for compliance.
Business Premium or E3Medical practices handling patient data. You need strong privacy controls and audit capabilities.
Business Premium minimum, but E3 may be required for full compliance depending on your specific requirements and audit needs.
E3 with compliance add-onsStaff working from home, client sites, or on the road. You need to secure devices you can't physically control.
Business Premium is essential. The combination of Conditional Access, Intune, and Defender means you can enforce security regardless of location.
Business PremiumLarger organisation with dedicated IT. You need advanced compliance, analytics, and threat protection.
Move to E3 for unlimited archive and better compliance tools. Add E5 Security for organisations with higher threat profiles or regulatory requirements.
E3 or E5What you get at each tier for the features that matter most.
| Feature | Basic | Standard | Premium | E3 |
|---|---|---|---|---|
| Desktop Office Apps | ||||
| Email Storage | 50GB | 50GB | 50GB | 100GB + Unlimited Archive |
| OneDrive Storage | 1TB | 1TB | 1TB | Unlimited |
| Multi-Factor Authentication | Basic | Basic | Advanced | Advanced |
| Conditional Access | ||||
| Device Management (Intune) | ||||
| Endpoint Protection (Defender) | ||||
| Data Loss Prevention | Basic | Full | ||
| eDiscovery | Basic | Standard |
These add-ons can extend your Microsoft 365 capabilities where needed.
AI assistant integrated across Office apps. Helps with writing, analysis, and productivity.
Advanced email protection with Safe Links, Safe Attachments, and anti-phishing. Essential add-on for Business Standard.
Identity protection, privileged identity management, and access reviews. For higher security requirements.
Cloud PBX for Teams. Replace your phone system with Teams calling.
Workflow automation across Microsoft and third-party apps. Included basic in most plans, per-user license for advanced.
Track compliance across frameworks. Included in E3/E5, add-on for Business plans.
Add-on trap: It's easy to spend more on add-ons than the price difference to the next tier. Before adding Defender for Office 365 and Intune separately to Business Standard, just upgrade to Premium-you'll get more for less.
The security features in Business Premium (Defender, Intune, Conditional Access) aren't nice-to-haves-they're essential in today's threat environment. The $15/user/month difference from Standard pays for itself the first time you block a phishing attack or remotely wipe a lost laptop.
Not everyone needs the same license. Your CEO might need Premium or E3, but your warehouse staff might only need Business Basic for email. We often see organisations with a mix: Premium for knowledge workers, Basic for operational staff, and E3 for executives and IT.
The license is just the start. Business Premium includes powerful security tools, but they need to be configured correctly. Conditional Access policies, Defender settings, and Intune device profiles all require expertise to implement properly. A misconfigured Premium license provides less protection than a well-configured Standard one.
Microsoft frequently updates licensing and moves features between tiers. What made sense last year might not be optimal now. We recommend reviewing your Microsoft 365 licensing annually to ensure you're getting value and not paying for features you don't use-or missing features you need.
We'll review your current setup, understand your requirements, and recommend the right Microsoft 365 configuration for your business-including a licensing strategy that balances security, productivity, and cost.