Understanding Microsoft 365 Business Licensing: What’s Included in Each Plan?

Microsoft 365 Business provides several business licensing plans for small, mid to large businesses. With so many plans on offer, choosing the right plan becomes quite a challenge. In this blog, we will talk about all key features of individual Microsoft 365 business plans to help you make the right choice for your company. Choose a plan that ensures your organization's productivity, collaboration, and security tools. 

Microsoft 365 Business Plans Overview 

Microsoft offers several business-focused plans, each catering to different organizational needs. The main Microsoft 365 Business plans include: 

1. Microsoft 365 Business Basic 
2. Microsoft 365 Business Standard 
3. Microsoft 365 Business Premium 
4. Microsoft 365 Apps for Business (Standalone Office apps) 

Let’s explore what each plan includes. 

1. Microsoft 365 Business Basic 

Best for: Small businesses needing cloud-based email and collaboration tools.  Price: ~$6.00/user/month (annual commitment) 

Key Features: 

• Get full access to the desktop applications of Microsoft Word, Excel, PowerPoint, and Outlook 
• Manage user identities, access, and accounts for up to 300 employees
• Get a professional business email (you@yourbusiness.com)
• Chat, call, and conduct video conferences using Microsoft Teams
• Leverage over 10 additional business apps, including Microsoft Bookings, Planner, and Forms 
• Get 1 TB of cloud storage per user
• Benefit from automatic spam and malware protection
• Receive 24/7 phone and web support
• Enhance productivity with AI-powered tools for writing, data analysis, and real-time web grounding
• Microsoft 365 Copilot is available as an additional add-on   

2. Microsoft 365 Business Standard 

Best for: Businesses needing full Office apps + cloud services.  Price: ~$12.50/user/month (annual commitment) 

Includes everything in Business Basic, plus: 

• Get full access to the desktop applications of Microsoft Word, Excel, PowerPoint, and Outlook. 
• Utilize collaborative workspaces for co-creation with Microsoft Loop
• Use video editing and design tools through Microsoft Clipchamp
• Organize webinars with attendee registration and reporting capabilities
• Microsoft 365 Copilot is available as an additional add-on 

Who should choose this? Companies that need installed Office apps along with cloud services like Teams and Exchange. 

3. Microsoft 365 Business Premium 

Best for: Businesses needing advanced security and device management.  Price: ~$22.00/user/month (annual commitment) 

Includes everything in Business Standard, plus: 

• Advanced identity and access management
• Enhanced cyberthreat protection against viruses and phishing attacks
• Tools to identify, categorize, and safeguard sensitive data
• Enterprise-level security for devices and endpoints
• Microsoft 365 Copilot is available as an additional add-on 

Who should choose this? Businesses handling sensitive data or requiring compliance with security regulations (e.g., healthcare, finance). 

4. Microsoft 365 Apps for Business 

Best for: Businesses that only need Office apps without cloud services.  Price: ~$8.25/user/month (annual commitment) 

Key Features: 

• Get full access to the desktop applications of Microsoft Word, Excel, PowerPoint, and Outlook 
• Anytime phone and web support 
• 1 TB of cloud storage per user
• Microsoft 365 Copilot is available as an additional add-on 

Which Plan Should You Choose? 

To diverge your decision, here’s a short guide in accordance with your business needs. Microsoft 365 Business Basic is perfect if your organization only needs fundamental email functionality and any web-based apps. Business Standard is the best balance for companies needing both the full Office desktop suite and cloud-based services. Business Premium is the best option if your business deals with sensitive data or if you need advanced security and compliance tools. Finally, if you just need Office applications without email or other cloud services for your team, Microsoft 365 Apps for Business is the right subscription for you.

Pricing comparison monthly and annually 

Pricing and budget are at the topline points while exploring the list of Microsoft 365 Business plans; The $7.20/month/per user (monthly subscription) Microsoft 365 Business Basic plan, is available at a discounted rate of $6.00/month/per user when billed yearly. Don’t forget the Business Standard plan ($15.00 per user/month with monthly billing or $12.50 per user/month annual commitment). The Business Premium plan, which offers more advanced tools for businesses, costs $26.40 per user/month (or $22.00 per user/month when billed annually). The Microsoft 365 Apps for Business plan, which includes Office apps but not email services, costs $9.90 per user/month, or $8.25 per user/month when paid annually.

Final Thoughts 

Microsoft 365 Business plans offer flexibility for businesses of all sizes. If security is a priority, Business Premium is the best choice. For companies needing just Office apps, Apps for Business is sufficient. Business Standard strikes a balance between productivity and cost, while Business Basic is ideal for cloud-only users. 

Consult with a Microsoft Licensing Expert Today!    Picking the best Microsoft plan for your business can be a bit confusing, but we shall make it easier for you. TMRC is your trustworthy Microsoft Gold Partner and Tier 1 CSP Partner, here to help you find just the right licensing option for your needs.