Microsoft 365 Business Basic, Standard or Premium: which plan does your business need?

The four plans in one line each

• Business Basic: business email, Teams, OneDrive and SharePoint, with web and mobile versions of Word, Excel, PowerPoint and Outlook.
• Business Standard: everything in Basic, plus the installed desktop apps.
• Business Premium: everything in Standard, plus device management and stronger security for email, accounts and devices.
• Apps for business: the desktop apps and OneDrive storage only. No business email mailbox and no Teams.

Microsoft also sells versions of some plans without Teams, and versions with Copilot included. At the time of writing, Microsoft's Australian pricing page lists Standard and Premium as "with Copilot" plans. The names shift, so compare what's included rather than the label.

What each plan includes

Prices change and vary between monthly and annual commitments, and with or without Teams or Copilot. Check current Australian dollar pricing on Microsoft's plans page before you decide. Prices there are shown without GST.

What the security differences mean in practice

Every Business plan includes security defaults, which turn on multi-factor authentication (MFA) by default. Make sure it's still on, whichever plan you choose. Our guide to securing Microsoft 365 covers the settings to check.

Business Premium adds three things that matter to a small business:

1. Conditional Access (Entra ID P1). Instead of one rule for everyone, you set conditions. For example, require MFA for anyone with an admin role, block sign-ins from countries you don't work in, block older sign-in methods that can't do MFA, or require a company-managed device for certain apps. 2. Intune. You can enrol company laptops and phones, configure their settings, keep them updated, and wipe one that's lost or stolen. On personal phones, you can manage just the work apps and the data inside them, then remove only the work data when someone leaves. That suits a bring-your-own-device policy. 3. Defender for Business. Protection against ransomware, malware and other threats on Windows and Mac computers and on iOS and Android devices, including endpoint detection and response. Businesses on Basic or Standard can buy Defender for Business on its own.

Premium also adds Defender for Office 365 Plan 1. This adds Safe Links, which checks links when they're clicked, Safe Attachments, which checks attachments for malicious content, and impersonation protection against emails pretending to be your staff or suppliers.

Premium's tools only help once they're set up. Buying the licence doesn't turn on Conditional Access policies or enrol your devices. Budget time to configure them, or ask whoever manages your IT to do it.

How to choose

Work through these questions in order.

1. Do staff need the installed Office apps? If people mostly work in email and the browser, Basic may be enough. If they rely on complex Excel workbooks, mail merges or Outlook on the desktop, they need Standard or Premium. 2. Do you already have email elsewhere? Apps for business suits someone who only needs Word and Excel and already has a mailbox they're happy with. It doesn't include a Microsoft business mailbox. 3. Do you handle sensitive or financial information? Payroll, client files, health records or regular invoice payments make you a target for email compromise and invoice fraud. Premium's Conditional Access, device management and link checking are built for exactly that. 4. Do staff work on laptops outside the office? Lost and stolen laptops are common. Intune lets you wipe a lost or stolen device remotely. 5. Do you use Teams? If you use another chat or meeting tool, a "no Teams" version may suit you better.

If you're unsure, Business Premium covers the most ground for a small business that holds customer data. If you're working towards the Essential Eight, its tools help with controls such as MFA.

Mixing plans

You don't have to give everyone the same plan. You can combine Business, Enterprise and standalone plans in one Microsoft 365 account. For example:

• Premium for the owner, finance staff and anyone with admin access.
• Standard for office staff who need desktop apps.
• Basic for staff who mostly need email and Teams on a phone or in a browser.

Two things to keep in mind. First, Premium's device protection and management only cover users and devices licensed for Premium. A cheaper licence on a shared front-desk computer leaves a gap. Microsoft recommends Premium for all users where you can. Second, the Business plans together have a 300-user cap. If you have 250 Premium seats, you can add only 50 more across all Business plans. Above 300 users, you'd move to Enterprise plans.

Switching plans later

You can move between plans as your needs change, for example from Basic to Standard or Premium. Before you switch, check what your current commitment allows. Microsoft says cancelling an annual commitment early may carry a penalty, while a monthly commitment can be cancelled at any time, usually at a higher price per month. If you're moving email to Microsoft 365 from another provider, choose the plan first so mailboxes are created with the right licence.

Common questions

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