Microsoft 365 Business Plans: Compare Plans & Pricing
Microsoft 365 Business comes in three tiers: Basic (£4.60/user/month), Standard (£9.40) and Premium (£17.60). Each plan includes Teams and cloud storage, but differ on desktop Office apps and security features. This guide compares all three plans to help UK businesses choose the right fit.
Ollie Hill-Haimes
Sales Director
The Three Microsoft 365 Business Plans
Microsoft 365 Business plans are designed for organisations with fewer than 300 users. All three include Microsoft Teams, Exchange Online email, SharePoint and OneDrive. The differences come down to whether you need desktop Office applications installed on devices, and how much security capability you need.
Microsoft 365 Business Basic — £4.60/user/month
Business Basic is the entry-level option and covers the collaboration and communication needs of most businesses that work primarily through a browser or on mobile. What's included:
- Microsoft Teams — chat, meetings, recording, transcription, breakout rooms
- Exchange Online — 50GB mailbox per user, custom domain email
- OneDrive — 1TB cloud storage per user
- SharePoint — team document storage and intranet capability
- Office web apps — browser-based versions of Word, Excel, PowerPoint, OneNote
- Microsoft Forms and Planner
What's not included:
- Installed desktop Office applications (Word, Excel, PowerPoint, Outlook, Access)
- Advanced security features (Defender for Business, Intune, Azure AD Premium)
Business Basic is appropriate for organisations where staff work primarily on web-based applications and don't need locally installed Office software. It's also a practical choice for businesses providing email and Teams access to staff who use their own personal devices for Office work.
Microsoft 365 Business Standard — £9.40/user/month
Business Standard adds the full Office desktop application suite on top of everything in Basic. This is the most commonly purchased Microsoft 365 plan for UK SMEs. Additional features over Basic:
- Installed Office apps — Word, Excel, PowerPoint, Outlook, OneNote, Access on up to 5 PCs or Macs per user
- Office on mobile — full Office mobile apps on up to 5 smartphones and tablets per user
- Teams Webinars — host external webinars with registration, up to 1,000 attendees
- Microsoft Bookings — appointment scheduling tool
- MileIQ — mileage tracking for UK users
Standard is the right choice whenever staff need Word, Excel or Outlook installed on their PCs. For most businesses, this is the minimum appropriate plan.
Microsoft 365 Business Premium — £17.60/user/month
Business Premium combines the full application suite of Standard with enterprise-grade device management and security tools. This is the plan AMVIA typically recommends for businesses that handle sensitive client data, operate in regulated sectors, or are working toward Cyber Essentials Plus certification.
Security and management features included on top of Standard:
- Microsoft Defender for Business — endpoint detection and response (EDR) for up to 300 devices
- Microsoft Intune — mobile device management (MDM) and mobile application management (MAM)
- Azure Active Directory Premium P1 — conditional access, risk-based sign-in policies, Azure AD joined devices
- Microsoft Purview Information Protection P1 — data classification, sensitivity labels, DLP policies
- Azure Information Protection P1
- Microsoft Defender for Office 365 Plan 1 — Safe Links, Safe Attachments for email and Teams
The security toolset in Premium would cost considerably more if purchased as standalone licences. For businesses that have experienced a security incident, or that carry client data of any sensitivity, Business Premium represents good value.
Comparing the Three Plans Side by Side
Teams and collaboration: all three plans include Teams, Exchange, SharePoint and OneDrive with the same capabilities. The Teams experience is identical across all three tiers.
Office applications: Basic provides web apps only; Standard and Premium provide installed apps on up to 5 devices per user.
Security: Basic and Standard provide Microsoft's baseline security (MFA via Authenticator, basic conditional access). Premium provides full Defender for Business endpoint protection, Intune device management, conditional access policies and data loss prevention.
Compliance: all three plans include basic Microsoft 365 compliance features. Premium adds information protection and classification capabilities.
Which Plan Is Right for You?
Choose Business Basic if your staff don't need Office apps installed locally and you have a low security risk profile — for example, a small team that works predominantly through a browser and doesn't handle sensitive client data.
Choose Business Standard if your staff need Word, Excel and Outlook installed on their PCs, which is the case for most traditional office-based businesses.
Choose Business Premium if you handle confidential client data, are in a regulated sector (financial services, healthcare, legal), have staff on personal devices accessing business data, or are pursuing Cyber Essentials Plus certification. The security tools are meaningfully better than what Basic and Standard provide.
AMVIA advises businesses across the UK on Microsoft 365 licensing and manages ongoing licence lifecycle management — ensuring you're on the right plan as your business grows and requirements change.
Not Sure Which Plan Is Right for Your Business?
AMVIA provides Microsoft 365 licensing advice for UK businesses. Talk to our team about the right plan for your size, sector and security requirements.
Frequently Asked Questions
Business Basic (£4.60/user/month) provides Teams, Exchange email, OneDrive and Office web apps only. Business Standard (£9.40/user/month) adds desktop installations of Word, Excel, PowerPoint and Outlook on up to 5 devices per user. For most office workers who need Office apps installed, Standard is the appropriate choice.
For businesses handling client data or operating in regulated sectors, Business Premium's security tools — Defender for Business, Intune, conditional access — are worth the additional £8.20/user/month. The equivalent security tools purchased separately would cost significantly more. For businesses with minimal security risk, Standard is adequate.
Yes. You can assign different plan tiers to different users within the same Microsoft 365 tenant. A common approach is to give office workers Standard (for installed Office apps) while giving field staff or basic users Basic licences to reduce costs.
Yes. Microsoft Teams is included in Business Basic, Standard and Premium at the same level of meeting and chat functionality. All three plans support Teams meetings, recording, transcription, and Teams Phone (with a calling plan add-on). The differences between plans are in Office apps and security, not Teams.
Microsoft 365 Business plans (Basic, Standard, Premium) support up to 300 users per organisation. Above 300 users, Microsoft's Enterprise plans (E3, E5) are required. Many businesses under 300 users choose to move to Enterprise plans early to access additional compliance and identity features.
Related Reading
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Microsoft 365 Business Premium | Features & Pricing
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