Microsoft 365 Business Basic vs Business Standard vs Business Premium

For organizations with fewer than 300 employees, Microsoft has a set of Microsoft Office 365 plans known as the “Business” editions. There are three options within Microsoft 365 Business: Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium. Each provides core productivity and collaboration tools at an accessible price point.

In this article, I’ll explain the main differences between the plans and include a comparison table to help you choose.

Key Differences Between Microsoft 365 Business Basic, Standard, and Premium

Microsoft 365 Business plans scale from essential cloud collaboration to a fully secure, managed modern workplace, with the right option depending on how your team works and the level of control you need.

When comparing Microsoft 365 Business Basic, Standard, and Premium, the differences go beyond price. The differences come down to how your team works and how your business needs to be secured.

Here are three important areas to consider:

1. How will your team access the applications? Web versus desktop experience.

• Business Basic is only available with the web and mobile versions of apps like Word, Excel, and Outlook. This allows for great collaboration but has more limited functionality.
• Business Standard and Business Premium include the full desktop versions of the applications, which allow for more advanced features, better performance, and the ability to work offline when needed.

2. What level of security and device management is needed?

• Business Basic and Business Standard provide foundational security features, including email protection and multi-factor authentication (MFA).
• Business Premium has many more layers of security through Device Management (Intune) to control company data on devices, conditional access to enforce security policies, data protection policies, and endpoint security (Microsoft Defender) to protect against threats and vulnerabilities.

3. What level of Copilot capabilities do you need?

• All three plans include Microsoft 365 Copilot Chat, Microsoft’s secure AI chat experience that combines web-based AI assistance, writing assistance, and data analysis.
• Business Standard and Business Premium have ‘with Copilot’ options, making Copilot a built-in part of Microsoft 365 for small businesses rather than an add-on. Copilot is integrated into familiar applications like Word, Excel, PowerPoint, and Outlook, understands your business context through your Microsoft 365 environment, and can connect with other business applications, all while working within your existing Microsoft 365 security, compliance, and permission structures. The Microsoft 365 Business with Copilot options were released on July 1, 2026.

There are many other differences between plans, but how your team will access the applications, the level of security required, and the Copilot capabilities are the biggest considerations when evaluating them.

Plans are continuously enhanced with new capabilities, including AI and security features, helping ensure your investment keeps pace with your business needs.

Microsoft 365 Business Basic

Microsoft 365 Business Basic is right for you if you only need web and mobile applications. Business Basic is a cost-effective option that includes web and mobile versions of Microsoft 365 apps, as well as email, Teams, and cloud storage.

It’s a strong fit for organizations focused on collaboration from anywhere without needing full desktop applications or advanced security controls.

Microsoft 365 Business Basic costs $7.00/user/month USD.*

Microsoft 365 Business Standard

Microsoft 365 Business Standard adds the full desktop versions of apps like Outlook, Excel, Word, and PowerPoint. This gives teams the flexibility to work both online and offline with more advanced functionality.

It’s ideal for growing businesses that rely on desktop tools for day-to-day productivity and want a more complete productivity solution.

Microsoft 365 Business Standard costs $14.00/user/month USD.*

Microsoft 365 Business Standard with Copilot plans are also available, combining all the features of Business Standard with Microsoft Copilot. Users gain access to Copilot assistance in Word, Excel, Outlook, PowerPoint, and Microsoft Teams, as well as reasoning AI for research and data analysis. Microsoft 365 Business Standard with Copilot costs $23.50/user/month USD.

Microsoft 365 Business Premium

Microsoft 365 Business Premium includes everything in Business Standard, plus advanced security and device management tools that help protect business data and reduce risk. The capabilities in this plan help organizations protect data, manage user devices, and enforce security policies across the business.

Microsoft 365 Business Premium costs $22.00/user/month USD.*

For organizations looking to have Microsoft Copilot built into familiar apps, Microsoft 365 Business Premium with Copilot includes the features of Business Premium, plus Copilot. This includes the work-based Copilot in apps such as Word, Excel, Outlook, PowerPoint, and Microsoft Teams, as well as reasoning AI for research and data analysis. Microsoft 365 Business Premium with Copilot costs $32.00/user/month USD.

Microsoft 365 Business Plans Comparison Table

Which Microsoft 365 Business Plan Should You Choose?

The right Microsoft 365 Business plan depends on how your team works, your security requirements, and your growth plans.

• Business Basic delivers the essential Microsoft 365 experience for organizations that primarily work in the cloud.
• Business Standard adds the full desktop applications needed by most growing businesses.
  • Business Standard with Copilot combines familiar Microsoft 365 apps with built-in AI assistance.
• Business Premium builds on Standard with advanced security and device management to help protect users, devices, and company data.
  • Business Premium with Copilot brings together advanced security, device management, and AI-powered productivity in one solution.

For many small and mid-sized businesses, Business Standard provides the best balance of functionality and cost. Organizations with stricter security requirements often find Business Premium delivers the greatest long-term value.

Are Microsoft 365 and Office 365 the Same?

No, not always. Both Microsoft 365 and Office 365 provide access to familiar apps like Word, Excel, Outlook, and PowerPoint, but Microsoft 365 typically includes extra security, device management, and productivity features depending on the plan.

In 2020, Microsoft renamed several Office 365 Business plans to better reflect the broader Microsoft platform.

• Office 365 Business Essentials is now Microsoft 365 Business Basic.
• Office 365 Business Premium is now Microsoft 365 Business Standard.
• Office 365 Business is now Microsoft 365 Apps for business.
• Microsoft 365 Business is now Microsoft 365 Business Premium.

The Office 365 Enterprise plans, including E1, E3, and E5, were not renamed and remain available today alongside Microsoft 365 Enterprise plans. For organizations that need to license more than 300 users, they typically purchase the Enterprise plans, which are designed for larger organizations and offer additional scalability and management capabilities.

Need Help Choosing the Right Microsoft 365 Plan?

Whether you’re getting started with Microsoft 365, optimizing your environment, or preparing for AI adoption, Encore can help you move forward with confidence.

Microsoft 365 delivers the most value when it’s aligned with your broader technology ecosystem. If you’re unsure which Microsoft 365 plan is right for your business, please reach out to Encore for advice on choosing the best plan for your needs.

* All pricing is subject to change without notice. Contact Encore for the most current pricing.