Choosing between Business Standard vs Business Premium is one of the most common debates for business owners considering Microsoft 365. Both plans provide access to essential apps like Word, Excel, Outlook, and Teams, but they serve different needs.
While Microsoft 365 Business Standard is built around productivity and collaboration, Microsoft 365 Business Premium adds advanced security, device management, and compliance tools.
For entrepreneurs evaluating Microsoft 365 pricing plans and seeking the best fit, the choice ultimately depends on whether your team requires basic cloud productivity tools for business or enterprise-grade protection.
Key Takeaways
- Business Standard is ideal for small teams that require essential Microsoft 365 apps and collaboration tools, but do not require advanced security features.
- Business Premium includes everything in Standard plus enterprise-level security, device management, and compliance features.
- The right plan depends on your team size, budget, data sensitivity, and IT support capacity.
- Startups may save with Business Standard, while growing or regulated businesses gain more value from Business Premium.
What is Microsoft 365 for Businesses?
Microsoft 365 for Businesses is a subscription-based suite of cloud productivity tools designed to help companies work smarter and more securely.
It combines essential Microsoft 365 apps for business, like Word, Excel, PowerPoint, Outlook, and Teams, with OneDrive cloud storage and collaboration features.
Beyond productivity, higher-tier Microsoft 365 pricing plans also include advanced security, device management, and compliance tools, making it a flexible solution that supports both small startups and growing enterprises.
Microsoft 365 Business Tiers at a Glance
Microsoft 365 for Businesses comes in four main tiers—Business Basic, Business Standard, Business Premium, and Apps for Business.
Each plan builds on the other, offering different levels of productivity, collaboration, and security. This makes it easier for entrepreneurs to choose the best Microsoft 365 plan for small business needs based on team size, budget, and IT requirements.
| Plan | Price (per user/month, annual) | Key Features | Best For |
|---|---|---|---|
| Business Basic | $6.00 | Web & mobile Office apps, Teams, email, 1TB cloud storage. | Small teams on a budget that need essential cloud tools. |
| Business Standard | $12.50 | All Basic + Desktop apps, webinars, and advanced collaboration tools. | SMEs that need full Office apps across devices. |
| Business Premium | $22.00 | All Standard + Advanced security, device management, and data protection. | Growing or regulated businesses that need strong security. |
Microsoft 365 Business Standard: Features and Benefits
Microsoft 365 Business Standard is designed for small to medium-sized teams that need essential productivity and collaboration tools without the complexities of enterprise-level IT management.
It provides access to popular Microsoft 365 apps, secure cloud storage, and seamless team communication, making it a cost-effective solution for growing businesses.
Core Features
Business Standard includes all the essential apps and services to keep your team productive and connected.
| Category | What You Get |
|---|---|
| User Access | Identity and access management for up to 300 users |
| Office Apps | Desktop, web, and mobile versions of Word, Excel, PowerPoint, and Outlook |
| Business Email | Custom business email with domain-based addresses |
| Collaboration Tools | Chat, call, meet, and host webinars through Microsoft Teams |
| Cloud Storage | 1 TB of OneDrive storage per user |
| Extra Business Apps | 10+ apps, including Microsoft Loop, Clipchamp, Bookings, Planner, and Forms |
| AI Integration | Microsoft 365 Copilot (available as an add-on) |
Benefits for Teams
Microsoft 365 Business Standard is built to improve productivity and collaboration for small to medium-sized businesses. Its mix of familiar apps and cloud-based tools ensures teams can work smarter and stay connected from anywhere.
| Benefit | Importance for Businesses |
|---|---|
| Cost-Effective Productivity | Provides all the essential Microsoft 365 apps at a lower price point compared to Premium, making it budget-friendly for SMEs. |
| Familiar Tools, Easy Adoption | Employees already know Word, Excel, and Outlook, reducing the need for extensive training and easing the transition to cloud productivity tools. |
| Work Anywhere, Anytime | With desktop, web, and mobile versions, employees can stay productive whether in the office, at home, or travelling. |
| Collaboration Made Simple | Teams, OneDrive, and shared calendars streamline real-time communication, file-sharing, and project management across distributed teams. |
| Scalable for Growth | Supports up to 300 users, making it ideal for startups and small businesses preparing to scale operations. |
| Integration with Business Apps | Extra apps like Bookings, Planner, and Forms simplify scheduling, planning, and feedback collection, boosting overall efficiency. |
Limitations
While Business Standard covers the basics well, its lack of advanced IT security and management features may leave growing or compliance-heavy businesses exposed.
| Limitation | Impact on Teams |
|---|---|
| No Advanced Security | Does not include Microsoft Defender or threat protection. This means businesses are more vulnerable to phishing, ransomware, or cyberattacks. |
| No Device & App Management | Lacks Microsoft Intune, so IT admins cannot enforce security policies or wipe lost or stolen devices, an issue for mobile or remote-first teams. |
| Limited Compliance Features | Businesses in regulated industries such as finance, healthcare, and legal may struggle to meet compliance standards without upgrading. |
| Scalability Cap | Designed for up to 300 users; larger organisations will quickly outgrow the plan. |
| Upgrade Pressure | As businesses expand or face growing cyber risks, many will eventually need to upgrade to Business Premium for advanced protection and control. |
See Also: Free AI Tools For Small Businesses to Improve Growth – A Comprehensive Guide
Microsoft 365 Business Premium: Features and Benefits
Microsoft 365 Business Premium builds on the foundation of Business Standard by adding advanced security, device management, and compliance tools.
It is designed for growing businesses that handle sensitive data, operate in regulated industries, or want enterprise-grade protection without paying for a full enterprise plan.
Core Features of Microsoft 365 Business Premium
Microsoft 365 Business Premium offers everything in Business Standard but layers on advanced security, compliance, and device management.
It is built for businesses that cannot afford to compromise on data protection and want enterprise-grade tools in an affordable package.
| Category | What You Get |
|---|---|
| User Access | Advanced identity and access management for up to 300 users |
| Office Apps | Desktop, web, and mobile versions of Word, Excel, PowerPoint, and Outlook |
| Business Email | Custom business email with domain-based addresses |
| Collaboration Tools | Chat, call, meet, and host webinars through Microsoft Teams |
| Cloud Storage | 1 TB of OneDrive storage per user |
| Extra Business Apps | 10+ apps, including Microsoft Loop, Clipchamp, Bookings, Planner, and Forms |
| Enterprise Security | Enterprise-grade device, cyberthreat, and endpoint protection (Defender, Intune, conditional access) |
| AI Integration | Microsoft 365 Copilot (available as an add-on) |
Benefits for Teams
Business Premium is designed for companies that cannot afford to compromise on data security, compliance, and IT control.
| Benefit | Importance for Businesses |
|---|---|
| Enterprise-Grade Security | Defends against sophisticated cyber threats like phishing, malware, and ransomware, critical for businesses storing sensitive client or financial data. |
| Centralised Device Management | With Intune, IT admins can manage company devices, enforce policies, and ensure that only secure, compliant devices can access company data. |
| Compliance Ready | Azure Information Protection and conditional access help businesses meet GDPR, HIPAA, and other regulatory requirements. |
| Enhanced Collaboration with Control | Employees enjoy the same Teams, OneDrive, and Office apps, but with added safeguards to keep work secure. |
| Business Continuity | Remote device wipe and secure file-sharing reduce the risk of data leaks if devices are lost or stolen. |
| Future-Proof Investment | As businesses scale, Premium’s security and compliance features save costs by reducing risks of breaches, fines, or downtime. |
Limitations
Business Premium offers powerful tools, but not every team will need or use the advanced features.
| Limitation | Impact on Teams |
|---|---|
| Higher Cost | Almost double the price of Business Standard, which may not be justified for very small businesses with limited security needs. |
| Requires IT Oversight | Features like Intune and conditional access may require IT expertise to set up and manage effectively. |
| Overkill for Small Teams | For startups or micro-businesses handling non-sensitive data, the added security and compliance tools may be unnecessary. |
| User Cap at 300 | Like Business Standard, it caps at 300 users; larger organisations must move to Enterprise plans. |
| Add-On Costs | Advanced AI features like Microsoft 365 Copilot come as extra add-ons, adding to total expenses. |
See Also: Best AI Tools for Business According to Business Leaders- 12 Game-Changing Apps for Entrepreneurs
Business Standard vs Business Premium: Key Differences at a Glance
When choosing between Business Standard vs Business Premium, entrepreneurs often wonder which Microsoft 365 plan best fits their team.
While both Microsoft 365 Business Standard and Microsoft 365 Business Premium offer essential cloud productivity tools for businesses, the real distinction lies in security, compliance, and IT management.
Here is a quick breakdown to help you decide:
| Category | Microsoft 365 Business Standard | Microsoft 365 Business Premium |
|---|---|---|
| Office Apps | Full desktop, web, and mobile apps (Word, Excel, PowerPoint, Outlook, Teams) | Same as Standard |
| Cloud Storage | 1 TB OneDrive per user | 1 TB OneDrive per user |
| Business Email & Calendar | Exchange email with a 50 GB mailbox and a custom domain address | Same as Standard |
| Collaboration Tools | Microsoft Teams, SharePoint, OneDrive | Microsoft Teams, SharePoint, OneDrive |
| Security Features | Basic email security | Advanced security with Microsoft Defender and Azure Information Protection |
| Device and App Management | Not included | Microsoft Intune for device and app management |
| Threat Protection | Not included | Protection against phishing, ransomware, and malware |
| Compliance Tools | Standard compliance | Enhanced compliance (GDPR, HIPAA, industry-specific needs) |
| Pricing (per user/month) | $12.50 | $22.00 |
| Best For | Small teams that need productivity and collaboration tools | Growing or regulated businesses requiring advanced security and IT management |
See Also: Best AI iPhone Apps to Manage Your Business- The Ultimate Productivity Toolkit
Business Standard vs Business Premium Pricing Comparison
When comparing Business Standard vs Business Premium, cost is often the deciding factor for many small and medium-sized businesses.
While both Microsoft 365 pricing plans provide essential productivity and collaboration tools, the jump in cost between Microsoft 365 Business Standard and Microsoft 365 Business Premium reflects the added security and device management features that come with Premium.
Here is how the two stack up:
| Plan | Price (per user/month) | Key Inclusions |
|---|---|---|
| Microsoft 365 Business Standard | $12.50 USD | Office apps, Teams, 1TB OneDrive, Business-class email |
| Microsoft 365 Business Premium | $22.00 USD | Everything in Standard + Advanced Security, Intune (device management), Microsoft Defender, and Compliance tools |
Prices may vary depending on your region and whether you commit to an annual or monthly subscription.
Factors to Consider When Choosing Between Standard and Premium
When comparing Business Standard vs Business Premium, the right choice often comes down to your business size, industry, budget, and security needs.
Both Microsoft 365 Business Standard and Microsoft 365 Business Premium offer excellent productivity tools, but they cater to slightly different scenarios.
Below are the key factors to guide your decision:
| Factor | Business Standard | Business Premium |
|---|---|---|
| Team Size | Ideal for small businesses and startups with limited IT needs. | Best for growing teams or larger SMEs with complex operations. |
| Budget | Lower monthly cost per user; good for budget-conscious teams. | Higher monthly cost but includes advanced security and management. |
| Industry Regulations | Suitable for businesses without strict compliance requirements. | Designed for industries handling sensitive data such as finance, healthcare, and legal. |
| Security Needs | Basic security is included but limited. | Advanced security with Microsoft Defender, conditional access, and encryption. |
| IT Support and Management | Minimal IT involvement required. | Offers centralised device and app management with Intune. |
| Risk of Cyber Threats | Adequate for low-risk businesses. | Strong protection against phishing, ransomware, and other attacks. |
Alternatives and Competitors to Microsoft 365
When weighing Business Standard vs Business Premium, it helps to also consider what other productivity suites offer.
While Microsoft 365 dominates the market thanks to its desktop apps and security features, competitors are closing in with affordable, flexible, and sometimes simpler solutions.
The best choice ultimately depends on whether your business prioritises cost, ease of use, or enterprise-level features.
| Platform / Plan | Price (per user/month, annual billing) | Key Strengths | Best For |
|---|---|---|---|
| Microsoft 365 Business Standard | $12.50 | Full Office apps, Teams, 1 TB OneDrive | SMEs that need productivity and collaboration |
| Microsoft 365 Business Premium | $22.00 | Enterprise-grade security, Intune, compliance | Growing or regulated businesses |
| Google Workspace (Business Standard) | $14.00 | Gmail, Drive, Docs, AI tools, strong collaboration | Startups and remote-first teams |
| Zoho Workplace (Mail-Only/Standard/Professional) | $1 / $3 / $6 | Highly affordable suite with email and office tools | Budget-conscious small businesses |
| Slack (Pro) | $8.75 | Rich messaging, voice or video integrations | Teams prioritising real-time communication |
| Slack (Business+) | $15.00 | SSO, uptime SLA, advanced compliance | Businesses needing enterprise support levels |
| Atlassian Confluence (Standard/Premium) | $5.16 / $9.73 | Wiki, a knowledge management platform | Tech teams and project-centric teams |
See Also: 15 Best AI Tools for Small Businesses and How to Use Them
Which Microsoft 365 Plan is Right for Your Business? A Quick Decision Checklist
Choosing between Business Standard vs Business Premium comes down to your team’s size, industry, security needs, and budget.
Both plans include the core Microsoft 365 apps for business, but Premium goes a step further with enterprise-level security and device management.
Use this quick checklist to see which plan matches your current stage of growth.
| Business Need or Situation | Best Choice | Why It Fits |
|---|---|---|
| Small team, mainly needs Office apps, Teams and cloud storage | Business Standard | Affordable, all-in-one productivity tools |
| Startups or SMEs with tight budgets | Business Standard | Delivers essentials without overspending |
| Growing business with remote workers | Business Premium | Device management and remote security built in |
| Industry handles sensitive data (finance, healthcare, legal) | Business Premium | Advanced security and compliance protection |
| The company has or needs dedicated IT support | Business Premium | Unlocks the full power of Intune and security tools |
| Low risk of cyber threats, minimal data sensitivity | Business Standard | Simpler setup with less overhead |
| High risk of cyber threats (target of phishing, ransomware, etc.) | Business Premium | Enterprise-grade protection and monitoring |
See Also: 10 Productivity Apps For Small Business Owners to Boost Efficiency
Conclusion
Deciding between Business Standard vs Business Premium depends on what matters most to your team. Is it affordability and core productivity tools, or advanced security and compliance?
For most small businesses, Microsoft 365 Business Standard is a solid starting point. But if you are scaling fast, handling sensitive data, or need stronger IT controls, Microsoft 365 Business Premium is the smarter long-term investment.
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Frequently Asked Questions (FAQs)
What is the difference between Microsoft 365 Business Standard and Business Premium?
The key difference is security. Business Premium includes everything in Business Standard plus advanced security, device management, and compliance tools like Intune and Microsoft Defender.
Is Microsoft 365 Business Premium worth it for small businesses?
Yes, if your business deals with sensitive data or has remote teams that require secure device management. Otherwise, Business Standard is usually enough for early-stage businesses.
How much does Microsoft 365 Business Standard cost?
Microsoft 365 Business Standard costs $12.50 per user/month (annual billing).
How much does Microsoft 365 Business Premium cost?
Microsoft 365 Business Premium costs $22.00 per user/month (annual billing). Monthly billing is also available at a slightly higher price.
Can I upgrade from Business Standard to Business Premium later?
Yes. Microsoft makes it easy to upgrade your subscription as your business grows or as your security needs increase.
Which is the best Microsoft 365 plan for a small business?
For most small businesses, Business Standard is the best balance of productivity and cost. However, if you operate in a regulated industry or need enterprise-grade protection, Business Premium is the better choice.
Do both plans include desktop apps like Word, Excel, and Outlook?
Yes. Both plans include the full suite of Microsoft 365 apps for business, accessible on desktop, web, and mobile.
Do both plans come with Microsoft Teams?
Yes. Both Standard and Premium include Microsoft Teams for video calls, chats, and collaboration.
What is Intune, and why is it important?
Intune (included in Premium) lets businesses manage devices, apps, and security policies remotely, a must for teams with remote workers or contractors.
Does Business Premium help with regulatory compliance?
Yes. Microsoft 365 Premium includes compliance tools and data protection features that help meet regulations like GDPR and HIPAA.
