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Microsoft 365 Business Basic vs Premium: Plans, License, SMBs
Alex Oosterman
Choosing the right Microsoft 365 plan can impact your team's productivity, security, and budget. If you're comparing Microsoft 365 Business Basic and Microsoft 365 Business Premium, you're not alone. Many small and mid-sized businesses are trying to understand which plan fits their needs best. In this article, you'll learn the key differences between these plans, what features matter most, and how to make the right decision for your business.
Both plans offer access to essential Office apps and cloud-based tools, but they differ in how much control, security, and storage they provide. We'll also touch on Microsoft 365 Business Standard, Azure Information Protection, and how tools like Intune and Teams can support your users.
Understanding Microsoft 365 Business Basic and Premium
Microsoft 365 Business Basic and Microsoft 365 Business Premium are part of a larger suite of Microsoft 365 plans designed for small and mid-sized businesses. Both options include cloud-based services like Exchange, OneDrive, and Teams, but they differ in how much control and security they offer.
Business Basic is ideal for companies that need cloud services and web-based Office apps. It includes email hosting, 1 TB of OneDrive storage per user, and collaboration tools like Teams. However, it doesn’t include desktop versions of Office apps or advanced security features.
Business Premium, on the other hand, includes everything in Business Basic plus the full desktop Office apps, Intune for device management, and Azure Information Protection for added security. It’s best suited for businesses that need more control over devices and data.
Key differences to know before choosing a plan
If you're unsure which Microsoft 365 plan is right for your business, here are some important differences to consider:
Difference #1: Desktop vs. web apps
Business Basic only includes web versions of Word, Excel, and PowerPoint. Business Premium includes full desktop apps, which are better for offline work and advanced features.
Difference #2: Security and device management
Business Premium includes Microsoft Intune and Azure Information Protection. These tools help protect your data and manage devices, which is critical for businesses handling sensitive information.
Difference #3: Email and collaboration tools
Both plans include Exchange for email and Teams for collaboration. However, Business Premium offers more integration and control options for managing users and data.
Difference #4: Storage and file access
Each user gets 1 TB of OneDrive storage in both plans. But Business Premium allows more advanced sharing and access controls, especially useful for remote teams.
Difference #5: Licensing and compliance
Business Premium includes additional Microsoft 365 license features that help with compliance, especially in regulated industries. Business Basic has fewer compliance tools.
Difference #6: App integration
Business Premium supports more advanced app integrations, including desktop Outlook and third-party business apps. Business Basic is more limited in this area.
Difference #7: Cost vs. value
Business Basic is more affordable, making it a good entry point. Business Premium costs more but offers better value for businesses that need security and control.
Essential features of Microsoft 365 for SMBs
Here are some key features that make Microsoft 365 a strong choice for small and mid-sized businesses:
- Access to Office apps like Word, Excel, and PowerPoint (desktop or web-based)
- 1 TB of OneDrive cloud storage per user for secure file access
- Microsoft Teams for communication and collaboration
- Email hosting with Exchange and custom domain support
- Device management and security with Intune and Azure
- Built-in compliance tools like Azure Information Protection
How Microsoft 365 license types affect your setup
Understanding your Microsoft 365 license is important when setting up your system. Each plan comes with specific rights and features, and choosing the wrong one can limit your capabilities.
For example, if you choose Business Basic, your users won’t have access to desktop Office apps. That might be fine for a remote team using web apps, but not ideal for teams that need offline access. Business Premium licenses allow more flexibility, especially when managing multiple devices or enforcing security policies.
Also, Microsoft 365 Business Standard sits between Basic and Premium. It includes desktop apps but lacks the advanced security tools found in Premium. It’s a good middle-ground for businesses that don’t need full device management.
What to consider when comparing Microsoft 365 plans
Choosing the right plan isn’t just about features—it’s about fit. Here are some key areas to think about:
Consideration #1: Team size and roles
If your team is growing or includes users with different needs, you may need a mix of licenses. For example, frontline workers might use Business Basic, while managers use Business Premium.
Consideration #2: Remote work and device use
If your team works remotely or uses personal devices, Business Premium offers more control through Intune. That helps you secure data even on non-company devices.
Consideration #3: Data protection needs
If your business handles sensitive data, Business Premium’s Azure Information Protection can help you meet compliance requirements and protect against data leaks.
Consideration #4: App usage and integration
Think about which apps your team uses daily. If you rely on desktop apps or need integration with third-party tools, Business Premium is the better choice.
Consideration #5: Budget and growth
Business Basic is cost-effective for startups or small teams. But as your business grows, upgrading to Business Premium can provide better long-term value.
Consideration #6: IT support and management
If you have limited IT support, Business Premium’s built-in tools can help automate updates and manage devices more easily.
Consideration #7: Long-term flexibility
Microsoft 365 subscriptions are flexible. You can switch plans or mix licenses as your needs change, so don’t feel locked into one option forever.
Best practices for implementing Microsoft 365
Once you’ve chosen a plan, setting it up correctly is key. Here are some tips to help you get started:
- Assign licenses based on user roles and needs
- Use Microsoft 365 Admin Center to manage users and permissions
- Set up security policies using Intune and Azure tools
- Train your team on using Teams, OneDrive, and Office apps
- Monitor usage and adjust plans as needed
Common challenges when using Microsoft 365
Even with the right plan, businesses can face challenges. Here are some common ones to watch for:
- Confusion about which Microsoft 365 license includes which features
- Not using available tools like Intune or Azure Information Protection
- Overlooking storage limits or file-sharing settings
- Underestimating the need for user training
- Failing to review subscription usage regularly
- Delayed updates or poor integration with existing systems
Planning can help you avoid these issues and get the most from your Microsoft 365 investment.
How Unified Technicians can help with Microsoft 365 Business Basic and Premium
Are you a business with 50 or more employees looking for a secure, scalable Microsoft 365 solution? Our team helps growing businesses choose the right plan, set it up properly, and support your users long-term.
We understand the difference between Microsoft 365 Business Basic and Microsoft 365 Business Premium, and we’ll help you match the right license to each user. Whether you need help with setup, security, or ongoing support, Unified Technicians is here to make it simple.
Frequently asked questions
What’s the easiest way to automate processes in Microsoft 365?
You can use Microsoft Power Automate to create automated process flows that connect your apps and services. It’s especially useful for repetitive tasks like approvals or notifications.
Power Automate works well with Microsoft 365 Business Premium and integrates with apps like Outlook, SharePoint, and Teams. It helps reduce manual work and improves consistency across your team.
How do I compare Microsoft 365 plans for my business?
Start by listing your business needs—do you need desktop apps, advanced security, or just email and file sharing? Then match those needs to what each plan offers.
Microsoft 365 Business Standard includes desktop apps but lacks some of the security tools found in Premium. Business Basic is more limited but cost-effective. Consider your team’s size, app usage, and growth plans.
Is Microsoft 365 Business Premium worth it for SMBs?
Yes, especially if you need security and device management. Microsoft 365 Business Premium includes tools like Intune and Azure Information Protection that help protect your data.
It also includes all Office apps, 1 TB of storage per user, and integration with Teams. For SMBs that handle sensitive data or have remote teams, it’s often the best value.
What’s the difference between Microsoft 365 Business Standard and Premium?
The main difference is security. Business Premium includes Intune and Azure Information Protection, while Business Standard does not.
Both plans include desktop Office apps, email, and Teams. If your business needs more control over devices and data, Premium is the better choice.
How does Microsoft 365 subscription pricing work?
Microsoft 365 subscription pricing is per user, per month. You can mix and match plans based on user roles.
For example, frontline workers might use Business Basic, while managers use Business Premium. You can also switch plans as your needs change.
What Microsoft 365 license is best for a growing team?
If your team is growing, consider starting with Business Standard or Premium. These plans offer more flexibility and features.
Business Premium includes advanced tools for managing users, storage, and security. It’s ideal for businesses that expect to scale and want a long-term solution.
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