Microsoft 365 has four main plans for small and medium businesses, and they look very similar on Microsoft’s website. The difference between them comes down to three things: whether your team needs the desktop Office apps, whether you need Microsoft’s business email, and how much security and device management you want built in.
This guide explains each plan in plain English and who it suits. Plan details are current as at October 2026. Microsoft changes its plans from time to time, so check the latest details before you buy.
The four Microsoft 365 business plans
Every business plan supports up to 300 users and includes 1 TB of OneDrive storage per person. The plans that include business email give each person a 100 GB mailbox.
- Business Basic includes email, Teams, OneDrive and SharePoint, with the web and mobile versions of Word, Excel and PowerPoint.
- Business Standard includes everything in Business Basic, plus the desktop Office apps.
- Business Premium includes everything in Business Standard, plus security and device management tools.
- Apps for business includes the desktop Office apps and OneDrive, but no business email or Teams.
Microsoft 365 Business Basic
Business Basic gives each person a business email address, Teams for chat and meetings, and file storage in OneDrive and SharePoint. Word, Excel and PowerPoint are available in a web browser and on phones and tablets, but not as desktop apps.
It suits staff who mostly work in email and a browser, such as team members who are on the road, part-time staff or anyone who rarely edits large documents.
Microsoft 365 Business Standard
Business Standard adds the desktop versions of Word, Excel, PowerPoint and Outlook, which each person can install on up to five computers, five tablets and five phones.
It suits most office teams that work in spreadsheets and documents every day, or that send and receive Office files from clients and suppliers.
Microsoft 365 Business Premium
Business Premium includes everything in Business Standard, plus the tools that let a business control who can sign in, from which devices, and what happens to its data. These include:
- Conditional access through Microsoft Entra ID P1, which can block sign-ins from unknown devices or unusual locations
- Intune, which manages and secures company laptops and phones, and can wipe business data from a lost device
- Defender for Business, which protects computers against malware and ransomware
- Defender for Office 365 Plan 1, which checks links and attachments in email before staff open them
- Data loss prevention, which can stop sensitive information such as tax file numbers being emailed out by mistake
- Email archiving with up to 1.5 TB of archive storage per person
It suits businesses that hold sensitive client information, have staff working from home or offshore, or need to meet cyber insurance requirements. If your team works remotely, our page on IT security for offshore and remote staff explains how these tools fit together.
Microsoft 365 Apps for business
Apps for business includes the desktop Office apps and 1 TB of OneDrive storage, but no business email, Teams or SharePoint. It suits a business that keeps its email with another provider and only needs Word, Excel and PowerPoint.
Business Basic vs Business Standard
The main difference is the desktop apps. Business Basic gives your team Word, Excel and PowerPoint in a browser and on mobile devices, while Business Standard adds the full desktop apps. If anyone in your team works in large spreadsheets, uses Excel macros or edits documents offline, they will need Business Standard or higher.
Business Standard vs Business Premium
The difference is security and device management. Both plans include the same Office apps, email and Teams. Business Premium adds conditional access, device management, device protection, extra email protection and data loss prevention.
For a business that holds client records or financial information, Business Premium is often worth considering, because it covers protections that would otherwise need separate products. It only helps if it is set up properly, though. Buying Business Premium and leaving its features switched off gives you no more protection than Business Standard.
Can you mix plans in one business?
Yes. You can give different people different plans, as long as each plan stays within its 300-user limit. A common setup is Business Premium for office staff who handle client data, and Business Basic for staff who only need email and Teams on their phone.
Plans with Copilot and plans without Teams
Microsoft also sells versions of Business Standard and Business Premium with Copilot included, which adds Copilot inside Word, Excel and PowerPoint. Business Basic includes Copilot Chat. There are also versions of each plan without Teams. If your team uses Teams for chat, meetings or calls, make sure the plan you choose includes it.
A quick way to decide
- If staff only need email, Teams and web apps, start with Business Basic.
- If staff work in desktop Word, Excel or Outlook every day, choose Business Standard.
- If you hold sensitive client data, have remote or offshore staff, or have cyber insurance requirements, look at Business Premium.
- If you keep your email elsewhere and only need the Office apps, choose Apps for business.
If you are moving from Google Workspace, our guide to moving from Google Workspace to Microsoft 365 covers what is involved.
How Digitek helps
Digitek IT is a Microsoft partner. We look at how each person in your business works, recommend the right plan for each role and set up the security features included in the plan you choose. We agree the price with you before any work starts.
Find out more about our Microsoft 365 setup and support, book an IT security review, or call 02 4504 8643.
