Microsoft 365 Plans Compared: Basic vs Standard vs Premium for Business

Choosing the right Microsoft 365 plan is one of the first decisions UK businesses face when adopting the platform. With multiple tiers available — each at a different price point and with different features — it is important to understand exactly what you get at each level before committing.

This guide compares the three main Microsoft 365 business plans: Business Basic, Business Standard, and Business Premium. We break down the features, pricing, and ideal use cases to help you choose the right plan for your organisation.

Microsoft 365 Business Plans at a Glance

All three plans include core Microsoft 365 services: Exchange Online email, Microsoft Teams, SharePoint, OneDrive for Business, and access to web versions of Office apps. The differences lie in desktop app access, advanced features, and security capabilities.

Microsoft 365 Business Basic

Price: From approximately £4.60 per user per month (annual commitment)

Business Basic is the entry-level plan, ideal for businesses that primarily need cloud-based email, file storage, and collaboration tools without desktop Office applications.

What is included:

• Web and mobile versions of Word, Excel, PowerPoint, and Outlook
• Exchange Online — business email with a 50 GB mailbox
• Microsoft Teams — chat, video meetings, and collaboration
• SharePoint Online — intranet and document management
• OneDrive for Business — 1 TB cloud storage per user
• Microsoft Forms, Planner, Lists, and Bookings

What is not included:

• Desktop versions of Office apps (Word, Excel, PowerPoint, Outlook)
• Advanced security and compliance features
• Device management via Intune

Best for: Businesses where staff primarily work in web browsers, use basic email and Teams, and do not require offline access to Office applications. Common in industries like retail, hospitality, and field services.

Microsoft 365 Business Standard

Price: From approximately £9.40 per user per month (annual commitment)

Business Standard is the most popular plan for UK SMEs. It includes everything in Basic plus full desktop versions of Office applications and additional business tools.

What is included (in addition to Basic):

• Desktop versions of Word, Excel, PowerPoint, Outlook, Access (PC only), and Publisher (PC only)
• Install on up to 5 PCs or Macs, 5 tablets, and 5 smartphones per user
• Microsoft Clipchamp — video editing tool
• Microsoft Loop — collaborative workspace
• Webinar hosting capabilities in Teams (up to 300 attendees)

Best for: Most office-based businesses that need full desktop Office apps alongside email, Teams, and cloud storage. This is the standard choice for professional services, accountancy firms, agencies, and general office environments.

Microsoft 365 Business Premium

Price: From approximately £16.60 per user per month (annual commitment)

Business Premium includes everything in Standard plus a comprehensive suite of security, compliance, and device management features. It is designed for businesses that handle sensitive data or need to meet regulatory requirements.

What is included (in addition to Standard):

• Microsoft Intune — mobile device management (MDM) and mobile application management (MAM)
• Microsoft Defender for Business — endpoint detection and response (EDR) for all devices
• Azure Information Protection — classify, label, and protect sensitive documents and emails
• Conditional Access policies — control who can access what, from where, and on which devices
• Advanced threat protection — safe links, safe attachments, and anti-phishing in email
• Data loss prevention (DLP) — prevent sensitive information from being shared inappropriately
• Azure AD Premium P1 — advanced identity and access management

Best for: Businesses handling sensitive data (legal, financial, healthcare), those working towards Cyber Essentials Plus certification, companies with remote or BYOD workforces, and any organisation that wants enterprise-grade security without enterprise complexity.

Feature Comparison Summary

Here is a quick comparison of the most important differences:

• Desktop Office apps: Basic — No. Standard — Yes. Premium — Yes.
• Email and calendar: All three plans — 50 GB mailbox with Exchange Online.
• Teams, SharePoint, OneDrive: All three plans — included.
• Device management (Intune): Basic — No. Standard — No. Premium — Yes.
• Endpoint security (Defender): Basic — No. Standard — No. Premium — Yes.
• Advanced threat protection: Basic — No. Standard — No. Premium — Yes.
• Conditional Access: Basic — No. Standard — No. Premium — Yes.
• Maximum users: All three plans — up to 300 users.

How to Choose the Right Plan

Ask yourself these questions to narrow down your choice:

• Do your staff need desktop Office apps? If yes, you need at least Business Standard. If web apps are sufficient, Business Basic saves money.
• Do you handle sensitive or regulated data? If yes, Business Premium's security features are worth the investment.
• Do you have remote workers or BYOD policies? Business Premium's Intune and Conditional Access give you control over devices and access.
• Does your cyber insurance or compliance framework require EDR? Business Premium includes Microsoft Defender for Business at no extra cost.
• Are you growing beyond 300 users? Microsoft 365 Business plans cap at 300 users. Larger organisations need Microsoft 365 Enterprise (E3 or E5) plans.

For a deeper look at Microsoft 365 for UK businesses, including enterprise plans, read our comprehensive guide to Microsoft 365 plans and pricing. If you want to explore managed IT support that includes Microsoft 365 administration, see our guide to managed IT support in the UK.

Can You Mix Plans Within Your Organisation?

Yes. Microsoft allows you to assign different plans to different users within the same tenant. For example, you might assign Business Premium to your leadership team and finance department, Business Standard to general office staff, and Business Basic to frontline or field workers. This helps optimise costs while ensuring each team has the tools and security they need.

Get Help Choosing and Managing Microsoft 365

Connection Technologies helps UK businesses select, deploy, and manage the right Microsoft 365 plans. Whether you need help with initial setup, licence optimisation, or ongoing administration, we'll match you with the right support provider.