Microsoft 365 plans explained: Basic, Standard and Premium
Updated 10 November 2026 · How we work
What the three small-business plans include, how to tell which you need, and why mixing plans across your team is normal.
Microsoft 365 for small businesses comes in three main plans, and the names do not say much. Choosing the right one for each person saves money without leaving anyone short. Here is what each includes in practical terms. We take no margin on licences, so our advice is simply about fit.
Business Basic
Email with a 50 GB mailbox, calendar, Teams, 1 TB of OneDrive storage, SharePoint, and the web and mobile versions of Word, Excel, PowerPoint and Outlook. What it does not include is the desktop Office apps installed on a computer. It suits people who work mainly from a browser or a phone, such as front-line staff who need email and Teams, or anyone who already has Office installed another way.
Business Standard
Everything in Basic plus the desktop Office apps on up to five computers, five tablets and five phones per person, and webinar features in Teams. This is the usual choice for office staff who live in Word, Excel and Outlook on a computer.
Business Premium
Everything in Standard plus a substantial security layer: Intune for managing computers and phones, Defender for Business for advanced threat protection, Defender for Office 365 to filter dangerous email links and attachments, conditional access to control where and how people sign in, and tools for protecting and classifying sensitive information. If your business handles personal or financial data, needs to meet cyber insurance requirements or has people working from their own devices, Premium is often the right choice for at least the people who hold the most access.
Mixing plans
You do not need to put everyone on the same plan. A typical small business might have Premium for owners, managers and finance, Standard for office staff and Basic for people in the field or on the shop floor. Shared mailboxes and meeting rooms need no licence at all.
Annual and monthly
Most plans are cheapest on an annual commitment, which can be billed monthly but cannot be reduced until the renewal date. Month-to-month costs more but can change at any time, which suits seasonal staff. We note renewal dates in your handover documents so unused licences can be dropped at the right time.
Prices
Microsoft sets the prices and changes them from time to time; the current price for Business Basic is shown in our cost calculator, and we quote the others on request. Where possible, licences are billed to your business directly by the vendor, in your name. If you are unsure which plans your team is on, email hello@bitlogix.tech and we will send you a summary with recommendations.
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