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 IT provider 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.

Recommended

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 IT provider)
  • 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

FeatureBusiness BasicBusiness StandardBusiness Premium
Price (per user/month)~£5~£10~£18
Desktop Office AppsNo (web only)YesYes
Exchange Email (50GB)YesYesYes
TeamsYesYesYes
OneDrive (1TB)YesYesYes
SharePointYesYesYes
Intune (Device Management)NoNoYes
Conditional AccessNoNoYes
Defender for Office 365NoNoYes
Autopilot (Zero-Touch Setup)NoNoYes
Azure Information ProtectionNoNoYes
Cyber Essentials ReadyPartialPartialYes

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 IT providers 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

Can we mix plans - Basic for some users, Premium for others?

Yes, Microsoft allows mixing plans within a tenant. We sometimes use Basic for very light users (warehouse staff who only need email) and Premium for office staff. However, managing mixed plans adds complexity, and the cost saving is often marginal.

Can we upgrade from Basic to Premium later?

Yes - upgrading is straightforward. We can change licences without disruption to users. Starting with Standard or Basic and upgrading to Premium once you're established is a reasonable approach, though you'll be without Intune and advanced security in the meantime.

Do we need Premium if we already have antivirus?

Antivirus is just one layer. Premium adds device management, email security, identity protection, and data classification that antivirus doesn't cover. We use Premium alongside dedicated EDR and application control for comprehensive protection.

Is Business Premium the same as Enterprise E3/E5?

No - Business Premium is capped at 300 users and has some feature limitations compared to Enterprise plans. For most SMBs, Business Premium is sufficient and better value. Enterprise plans are for larger organisations with specific compliance or feature requirements.

Will you help us set up Premium properly?

Yes - proper configuration is essential to getting value from Premium. We configure Intune policies, Conditional Access rules, Defender settings, and Autopilot profiles as part of our onboarding. Many businesses have Premium but aren't using half its features.

Ready to Make the Right Choice?

We'll assess your current setup and recommend the best approach for your business - with no obligation.

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