Microsoft 365: Basic vs Standard vs Premium
Microsoft 365 is the foundation of modern business IT - but with three business plans at three very different price points, choosing the right one matters. Overspend and you waste budget. Underspend and you leave critical security gaps. Here's an honest, jargon-free comparison from an MSP that deploys all three every day.
The Options
A straightforward comparison of your choices
Business Basic
Web and mobile Office apps only (no desktop Word/Excel/PowerPoint), Exchange email, Teams, and 1TB OneDrive storage. The entry-level plan.
Advantages
- Cheapest option - around £5/user/month
- Full Teams functionality for chat, calls, and meetings
- 1TB OneDrive cloud storage per user
- Exchange Online email with 50GB mailbox
- Enough for businesses where staff primarily use web browsers
Disadvantages
- No desktop Office apps - Word, Excel, PowerPoint are web-only
- No Intune device management
- No Conditional Access or advanced security
- No Azure Information Protection
- Limited to basic security features
Best for: Very small businesses (1-5 staff) doing mainly email, basic documents, and communication. Staff who don't need offline access to documents.
Business Standard
Full desktop Office apps (Word, Excel, PowerPoint, Outlook), Exchange, Teams, SharePoint, and 1TB OneDrive. The most popular plan.
Advantages
- Full desktop Office apps that work offline
- Everything in Basic, plus desktop app installation
- Bookings, Forms, Planner, and Power Automate included
- Good value for businesses needing proper Office applications
- Install on up to 5 PCs/Macs per user
Disadvantages
- No device management (Intune)
- No Conditional Access or advanced security
- No automatic device enrolment
- Still relies on basic security - MFA but no advanced threat protection
- Around £10/user/month - double the Basic cost
Best for: Businesses that need desktop Office apps and collaboration tools, but don't handle particularly sensitive data or need advanced security controls.
Business Premium
Everything in Standard plus Microsoft Intune, Conditional Access, Defender for Office 365, Azure Information Protection, and advanced security. The complete package.
Advantages
- Everything in Standard, plus enterprise-grade security
- Intune device management - deploy, manage, and secure all devices remotely
- Conditional Access - control who logs in, from where, on what device
- Defender for Office 365 - advanced anti-phishing and safe attachments
- Azure Information Protection - classify and protect sensitive documents
- Autopilot - zero-touch device deployment
Disadvantages
- Most expensive - around £18/user/month
- Requires proper configuration to get full value (most businesses need an MSP)
- Some features are complex and go unused without expert setup
Best for: Any business handling sensitive data, needing device management, requiring compliance controls, or wanting enterprise-grade security. This is what we recommend for most businesses with 5+ staff.
Side-by-Side Comparison
Feature-by-feature breakdown
| Feature | Business Basic | Business Standard | Business Premium |
|---|---|---|---|
| Price (per user/month) | ~£5 | ~£10 | ~£18 |
| Desktop Office Apps | No (web only) | Yes | Yes |
| Exchange Email (50GB) | Yes | Yes | Yes |
| Teams | Yes | Yes | Yes |
| OneDrive (1TB) | Yes | Yes | Yes |
| SharePoint | Yes | Yes | Yes |
| Intune (Device Management) | No | No | Yes |
| Conditional Access | No | No | Yes |
| Defender for Office 365 | No | No | Yes |
| Autopilot (Zero-Touch Setup) | No | No | Yes |
| Azure Information Protection | No | No | Yes |
| Cyber Essentials Ready | Partial | Partial | Yes |
Our Verdict
We recommend Business Premium for most businesses with 5+ staff. The security and device management features included in Premium would cost significantly more if purchased separately, and they're essential for any business taking cybersecurity seriously. The £8/user/month uplift from Standard to Premium is the best value investment in IT security you can make.
Why We Almost Always Recommend Premium
This isn't upselling - it's practical advice based on deploying all three plans across hundreds of users. Here's why Premium is worth the extra cost:
Intune Changes Everything**
Without Intune (Basic and Standard plans), you can't remotely manage devices. You can't enforce encryption, push apps, or wipe a lost laptop. Every new starter requires manual setup. Every leaver requires physical access to their device. Intune automates all of this - and it's included in Premium.
Conditional Access Blocks Account Compromise**
Conditional Access is the single most effective defence against account takeover. It ensures that even with a stolen password and MFA bypass, an attacker can't log in from an unrecognised device or location. Without it (Basic and Standard), your Microsoft 365 accounts are significantly more vulnerable.
Defender for Office 365 Stops Phishing
Basic and Standard include Microsoft's standard email filtering. Premium adds advanced anti-phishing, safe links (URLs are checked when clicked, not just when received), and safe attachments (files are opened in a sandbox before delivery). For businesses where email is the primary attack vector - which is most businesses - this is essential.
Cyber Essentials Alignment**
Cyber Essentials requires device management, proper access controls, and security configuration. Meeting these requirements with Basic or Standard plans requires expensive third-party tools. Premium includes the native Microsoft tools that satisfy CE requirements out of the box.
The Maths: Premium vs. Standard + Add-Ons
Some MSPs sell Standard and then charge for third-party MDM, email filtering, and MFA management separately. When you add up the cost:
- Standard: £10/user/month
- Third-party MDM: £3-5/user/month
- Third-party email security: £2-4/user/month
- Total: £15-19/user/month - the same or more than Premium, with worse integration.
Premium at £18/user/month is genuinely better value when you use its features properly.
Read our detailed guide on Microsoft Business Premium for a deeper dive.
Common Questions
Answers to questions we hear most often
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