Exchange Online or Microsoft 365 Business Basic: when email alone is enough
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Short answer: Exchange Online Plan 1 is enough when the user only needs business email with 50 GB of storage. Microsoft 365 Business Basic costs a little more but gives a 100 GB mailbox, Teams, 1 TB of OneDrive and web versions of Word and Excel, so for most office users it is better value.
Last checked: 27 October 2026.
What is the difference between Exchange Online and Business Basic?
Exchange Online is only an email, calendar and contacts service, while Microsoft 365 Business Basic includes the same email plus Teams, OneDrive, SharePoint and Office web apps. The table compares the three plans as Microsoft describes them.
| Capability | Exchange Online Plan 1 | Exchange Online Plan 2 | Business Basic |
|---|---|---|---|
| List price (USD/user/month, annual) | $4 | $8 | $7 (with Teams, from 1/7/2026) |
| Mailbox | 50 GB | 100 GB | 100 GB |
| Email archive | 50 GB | Up to 1.5 TB | 50 GB |
| Teams | No | No | Yes (in the version with Teams) |
| OneDrive and SharePoint | No | No | Yes, 1 TB OneDrive |
| Word, Excel, PowerPoint | No | No | Web and mobile |
| Data loss prevention (DLP) | No | Yes | No |
| Sending limit | 10,000 recipients/day | 10,000 recipients/day | 10,000 recipients/day |
Sources: Microsoft Exchange Online pricing page, Exchange Online limits on Microsoft Learn, 2026 pricing announcement. Euro prices vary by country.
When is Exchange Online Plan 1 enough?
Exchange Online Plan 1 is enough when the user only wants email on the company domain, for example maria@your-domain.gr, and does not use Teams or cloud files. Typical examples are external associates, users who already have another tool for files, or accounts that only reply to customers.
When is Exchange Online Plan 2 needed?
Exchange Online Plan 2 is needed when a mailbox must keep many years of correspondence or when the business wants data loss prevention in email. Plan 2 gives a 100 GB mailbox, an archive that grows automatically up to 1.5 TB, and DLP. It also raises a shared mailbox from 50 to 100 GB.
Exchange Online or Business Basic: which should I choose?
Our own practical advice, per user:
- Choose Exchange Online Plan 1 if the user only needs email, calendar and contacts, and 50 GB is enough.
- Choose Microsoft 365 Business Basic if the user will use Teams, OneDrive or shared files even a little. The price difference is small and the mailbox is twice as large.
- Choose Exchange Online Plan 2 if the mailbox plus archive exceeds 100 GB or you need DLP, without the other apps.
- For shared addresses such as info@ or accounts@ use a shared mailbox, which needs no licence up to 50 GB.
Can I have Exchange Online and Microsoft 365 in the same company?
Yes, users on Exchange Online and users on Microsoft 365 Business can coexist in the same tenant, with a shared domain and a shared address book. Moving from Exchange Online to Business Basic requires no email migration, because the mailbox stays in the same Exchange Online.
What about email security?
None of Exchange Online Plan 1, Exchange Online Plan 2 and Business Basic includes Microsoft Defender for Office 365 Plan 1, which is in Business Premium. Whatever the plan, every business needs multi-factor authentication and correct SPF, DKIM and DMARC records on its domain.
How ITHACA helps
ITHACA, a Microsoft partner in Athens, moves business email to Exchange Online or Microsoft 365 without losing messages, and sets up SPF, DKIM and DMARC from day one.
Frequently asked questions
Exchange Online vs Business Basic: which is cheaper?
Exchange Online Plan 1 is cheaper, with a list price of 4 dollars per user per month, compared with 7 dollars for Microsoft 365 Business Basic with Teams from 1 July 2026. Business Basic, however, gives twice the mailbox, 100 GB, and includes Teams and 1 TB of OneDrive.
How many GB of email does Exchange Online Plan 1 have?
According to Microsoft's Exchange Online limits, Exchange Online Plan 1 provides a 50 GB mailbox and a 50 GB email archive per user. Exchange Online Plan 2 provides a 100 GB mailbox and an archive that grows automatically up to 1.5 TB.
Does Exchange Online include desktop Outlook?
Exchange Online provides a mailbox and Outlook on the web, and works with desktop Outlook if you already have it. The Exchange Online licence does not include installed Office apps. For installed Outlook, Word and Excel you need Microsoft 365 Business Standard or Apps for business.
Does the company info@ address need a licence?
No, if it is set up as a shared mailbox. According to Microsoft, a shared mailbox needs no licence up to 50 GB. The users who open it must have their own Exchange Online or Microsoft 365 licence. With an Exchange Online Plan 2 licence the limit becomes 100 GB.
How many emails can I send per day?
In all Exchange Online and Microsoft 365 Business plans, Microsoft sets a limit of 10,000 recipients per rolling 24 hours for each mailbox. Newsletters and bulk email to customers should use a separate sending service, not the business mailbox.