When choosing Microsoft 365 for your organisation, there are several licensing options that vary in capability, especially around applications, security, device management and collaboration tools. Below is a summary of each, their benefits, and what to consider when making your choice.
Plan features
Microsoft 365 Business Basic
- Provides cloud access to web and mobile versions of core Office apps such as Word, Excel, PowerPoint and Outlook. No desktop versions of Office apps.
- Includes business-class email and Microsoft 365 Teams for chat, calls and video conferencing.
- 1TB of OneDrive cloud storage per user.
- Basic security features such as spam and malware filtering, preset security polices and multi-factor authentication (MFA).
- Collaboration tools, features and apps such as Bookings, Planner and Forms.
Microsoft 365 Business Standard
- Includes everything in Business Basic, plus desktop versions of all Office apps, for both PC and Mac.
- Extra tools such as Clipchamp for web-based video editing and webinar hosting via Teams.
Microsoft 365 Business Premium
- Builds on Business Standard with advanced security features including enterprise-grade identity and access management capabilities, cyber threat protection (Microsoft Defender) and endpoint management.
- Includes more control over devices, policies, and compliance features, which make it especially suitable for businesses with stricter regulatory or security needs.
Microsoft 365 Apps for Business
- Designed for users who only need the Office applications and cloud storage, but don’t need the extra services such as business-class email, Teams, or full security/management tools.
- Offers fully installed desktop versions of Word, Excel, PowerPoint, Outlook, plus 1 TB OneDrive per user. Works across multiple devices including desktop, mobile and tablet.
Which plan is right for your users?
It is possible to purchase different licensing for different users within your organisation – allowing you to purchase the plan that is most suitable for the needs of the role they are fulfilling.
For mainly online working, light requirements, and cost-effectiveness, Business Basic may suffice. This plan is most suited to businesses primarily working online or via a browser, or for users that don’t use Office apps routinely.
For the full suite of desktop productivity apps and collaboration tools, Business Standard is required.
For organisations with greater security, compliance, device, or endpoint protection needs, Business Premium is most suited.
If your users need Office apps and storage, but don’t need hosted email, teams, or device management, then Microsoft 365 Apps for Business is a good fit. Great for organisations whose emails may be managed elsewhere, or for users who just need productivity apps without the full Microsoft 365 ecosystem.
Further considerations
Device and user count: Some plans limit the number of users or devices; in the UK, Microsoft Business plans are capped at 300 users. Organisations with more users will need to explore an Enterprise plan such as E3 or E5.
Security and compliance: If you need conditional access, Intune or Defender, you will need Business Premium licences.
Administrative overhead: Advanced plans offer greater policy controls, but require more configuration and technical know-how, which may mean you need an internal IT team or outsourced IT support to manage this for you.
Budget vs value: Investing more in Premium licenses may save time, reduce risk, and increase productivity, and despite costing more, be more cost-effective overall.
Upgrades: You can mix and match licences; not every user needs the same plan. You can start with Basic/Apps and upgrade key users to Standard or Premium as required.
Microsoft 365 Copilot: Copilot can be added to any of Microsoft 365 Business Basic, Standard, Premium or Apps for Business as an additional paid add-on licence.
Final thoughts
Microsoft 365 is highly flexible, and the right plan depends on your organisation’s needs and priorities; whether that’s cost, collaboration, desktop apps, or enhanced security.
Business Basic is ideal for cloud-first, browser-based work and minimal costs. Business Standard delivers a fuller experience, with desktop apps and more collaboration tools, whereas Business Premium is the choice when security and device compliance are essential. Apps for Business is a great choice when all you need is the Office apps and cloud storage.
Choosing the right plan will ensure your team gets the tools they need without paying for features they won’t use. If you’d like help comparing options or calculating cost and benefits, please reach out to us here.