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Microsoft 365 plans

Microsoft 365 Business Basic vs Standard vs Premium: which do you need?

All three include the same Exchange Online mailbox. The differences are in the apps, the security tools and the price — and plenty of businesses pay for Standard or Premium when Basic would do, or run Basic when they badly need Premium.

  • Updated 5 October 2026
  • 3 minute read
  • Written by our UK engineers

The three plans at a glance

Business BasicBusiness StandardBusiness Premium
Price (annual commitment, ex VAT)£5.40£10.80£16.90
Exchange mailbox100 GB100 GB100 GB
Archive mailbox50 GB50 GBUp to 1.5 TB
Teams, OneDrive, SharePointYesYesYes
Office appsWeb and mobile onlyDesktop, web and mobileDesktop, web and mobile
Device management (Intune)NoNoYes
Conditional access (Entra ID P1)NoNoYes
Defender for BusinessNoNoYes

Prices are Microsoft’s UK list prices following the 1 July 2026 increase; your reseller’s may differ slightly. Our guide to the July 2026 price rise has the before-and-after.

Business Basic: email, Teams and the web apps

Basic gives every user a full Exchange Online mailbox, Teams, OneDrive and SharePoint, and the web and mobile versions of Word, Excel and PowerPoint. What it does not include is the desktop Office applications — including desktop Outlook.

It suits staff who work mainly in a browser or on a phone, frontline and site teams, and anyone who already has desktop Office from another licence. For a business that mostly needs email and calendars, it is the cheapest sensible Microsoft option.

Business Standard: adds the desktop apps

Standard is Basic plus the installable desktop versions of Outlook, Word, Excel and PowerPoint, on up to five PCs or Macs, five tablets and five phones per user. For a team that lives in Excel and desktop Outlook, that is what you are paying the extra £5.40 for.

It is the most common small-business plan, and frequently the wrong one — either because half the staff would be fine on Basic, or because the business would be far better protected on Premium.

Business Premium: adds the security layer

Premium is Standard plus the tools that turn Microsoft 365 into a properly managed and protected environment:

  • Intune to manage and secure company laptops and phones, and wipe them if lost.
  • Entra ID P1, including conditional access — for example, only allowing sign-ins from managed devices or from the UK.
  • Defender for Business for endpoint protection.
  • Exchange Online Archiving, with an archive that grows to 1.5 TB.
  • Purview information protection for labelling and protecting sensitive documents.

Premium was held at £16.90 when Basic and Standard rose in July 2026, which narrowed the gap. For businesses that handle client money or sensitive data — accountants, solicitors, healthcare — it is often the best value of the three, because buying those security tools separately costs more.

Which one should you choose?

  • Choose Basic if your team works in the browser, on phones, or already has desktop Office.
  • Choose Standard if people genuinely need desktop Excel, Word and Outlook, and you manage device security another way.
  • Choose Premium if you handle sensitive data, need to manage company devices, or want conditional access — or if a cyber insurance or client questionnaire asks about any of those.
  • Mix them. Licences are assigned per person, so a business can run Premium for the finance team and Basic for site staff.

Where hosted Exchange fits — honestly

If email and calendars are all you need, Business Basic is cheaper than our hosted Exchange mailbox, and includes a larger mailbox. We say that plainly because we sell both.

Businesses choose hosted Exchange instead for reasons other than price: UK-only hosting and UK-only support written into the contract, a named engineer on a direct phone number, mailbox administration in the SolidCP control panel, no annual commitment, and a like-for-like move off their own Exchange server with public folders and permissions intact. If none of those matter to you, Microsoft 365 is probably the better buy — and we will quote you for it.

Sources

Questions

Frequently asked

How big is a Microsoft 365 Business Standard mailbox?

100 GB, the same as Business Basic and Business Premium. Basic and Standard also include a 50 GB archive mailbox; Premium includes Exchange Online Archiving, with an archive that grows to 1.5 TB.

Does Microsoft 365 Business Basic include Outlook?

It includes Outlook on the web and the Outlook mobile apps, but not the installable desktop Outlook for Windows or Mac. Desktop Outlook comes with Business Standard and Premium, or separately with Microsoft 365 Apps for business.

Is Business Premium worth it for a small business?

Often, yes — particularly if you handle client money or personal data. It adds device management, conditional access, endpoint protection and a much larger archive for £6.10 more per user per month than Standard, which is less than those tools cost separately.

Can different people have different plans?

Yes. Licences are assigned per user, so you can combine Basic, Standard and Premium in one organisation, up to 300 users per plan.

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