Microsoft 365 Business Basic, Standard or Premium: which one you need in 2026

Short answer: Microsoft 365 Business Basic gives business email, Teams and 1 TB of OneDrive, but only web and mobile apps. Microsoft 365 Business Standard adds the installed Word, Excel, PowerPoint and Outlook apps. Microsoft 365 Business Premium adds the security a business needs today: device protection with EDR, device management with Intune, advanced email protection and access rules.

All three Microsoft 365 Business plans are for businesses with up to 300 users and can be combined in the same organisation. Last checked: 27 October 2026.

What do Business Basic, Standard and Premium include?

The three Microsoft 365 Business plans build on each other: Business Standard has everything in Business Basic, and Business Premium has everything in Business Standard. The table shows the differences as Microsoft describes them today.

What is the difference between Business Basic and Business Standard?

The difference between Business Basic and Business Standard is the installed Office apps. With Microsoft 365 Business Basic the user works in Word, Excel and PowerPoint only in the browser and on the phone. With Microsoft 365 Business Standard they install them on up to 5 computers, 5 tablets and 5 phones, and also get Teams webinars and Clipchamp for video.

An accountant working all day in large Excel files needs Business Standard. A driver, a technician or a salesperson who only needs email and Teams on the phone is covered by Business Basic.

When is Business Premium worth it?

Microsoft 365 Business Premium is worth it when the business must protect computers, email and accounts, not just write documents. Business Premium includes Microsoft Defender for Business, which according to Microsoft has endpoint detection and response (EDR) and automated investigation, and Microsoft Defender for Office 365 Plan 1 for phishing and malicious attachments.

Business Premium also gives Intune for device management (for example remotely wiping a lost laptop), Microsoft Entra ID P1 for access rules, and Purview for protecting sensitive files. If a business would otherwise buy antivirus with EDR and email protection separately, Business Premium usually works out cheaper overall (our own practical advice).

For businesses in scope of NIS2, or whose customers ask them for security measures, Microsoft 365 Business Premium covers many of the technical measures in one plan: multi-factor authentication, device protection, encryption and access control.

What changed in Microsoft 365 prices from 1 July 2026?

From 1 July 2026 Microsoft raised the prices of Business Basic and Business Standard, while Business Premium stayed at the same price. Microsoft's list prices in US dollars, per user per month on an annual commitment, changed as follows:

Along with the prices, Microsoft added 50 GB of email storage to Business Basic, Standard and Premium, and time-of-click URL protection to Business Basic and Standard. For existing subscribers, the new price applies at the first renewal after 1 July 2026.

The result: the price gap between Business Standard and Business Premium narrowed. For many businesses Business Premium has become the more sensible choice for office users (our own practical advice).

Business Basic, Standard or Premium: which should I choose?

The right choice is made per user, not for the whole company. Our own practical advice:

• Choose Business Basic if the user only needs email, Teams and cloud files, and works mainly from a phone or browser.
• Choose Business Standard if the user works daily in installed Word, Excel and Outlook, but device security is already covered by another tool.
• Choose Business Premium if the business holds sensitive data (customers, finance, health), has laptops outside the office, NIS2 or GDPR obligations, or wants to stop paying separately for antivirus and an email filter.
• If you have more than 300 users, no Business plan is enough: look at Microsoft 365 E3.

Can I mix Basic, Standard and Premium?

Yes, Microsoft allows the same organisation to have users on Business Basic, Business Standard and Business Premium, as long as the total of Business licences does not exceed 300. Microsoft does, however, recommend Business Premium for all users, because the protection applies only to users and devices that have the Business Premium licence.

With Teams or without Teams?

Microsoft sells every Microsoft 365 Business plan in a version with Teams and a version without Teams. From 1 November 2025, the version with Teams costs at least €1.50 more for Business Basic and at least €3.00 more for Business Standard and Business Premium. The version without Teams only pays off if the business already uses another tool for video calls and chat.

What are the most common mistakes when choosing?

• Business Standard for everyone, "to be safe". Users who work only from a phone pay for apps they never install.
• Business Standard plus a separate antivirus without EDR. Together they often cost almost as much as Business Premium and protect less.
• Buying Business Premium without switching it on. Intune, Defender for Business and access rules protect nothing until they are configured.
• Monthly commitment for users who stay for years. The annual commitment has a lower monthly price than the monthly one.
• A paid licence for a shared address (e.g. info@). A shared mailbox up to 50 GB does not need a licence.

How ITHACA helps

ITHACA, a Microsoft partner in Athens, recommends a plan per user based on how each person works, and configures Business Premium security so it works from day one. You can see the prices of every plan or use the "Which plan fits me" tool.