Business Plans Overview
Microsoft 365 business plans cover organisations with up to 300 users. Above 300 users, you move into Enterprise plans. The three business tiers — Basic, Standard, and Premium — are designed to serve progressively more demanding requirements.
| Feature | Business Basic | Business Standard | Business Premium |
|---|---|---|---|
| Price (annual, per user/mo) | $6 | $12.50 | $22 |
| Max users | 300 | 300 | 300 |
| Desktop Office apps | No | Yes (5 devices) | Yes (5 devices) |
| Web/mobile Office apps | Yes | Yes | Yes |
| Exchange mailbox size | 50GB | 50GB | 50GB |
| OneDrive storage | 1TB | 1TB | 1TB |
| Microsoft Teams | Yes | Yes | Yes |
| SharePoint | Yes | Yes | Yes |
| Microsoft Bookings | Yes | Yes | Yes |
| Webinars (Teams) | No | Yes | Yes |
| Microsoft Defender for Business | No | No | Yes |
| Microsoft Intune | No | No | Yes |
| Azure AD Premium P1 | No | No | Yes |
| Conditional Access | Basic defaults only | Basic defaults only | Full policies |
| Azure Information Protection P1 | No | No | Yes |
Pricing shown reflects annual commitment as published in January 2026. Monthly billing costs more per seat. Pricing varies by region and may differ through Microsoft partners or CSP channels.
Enterprise Plans Overview
Enterprise plans have no user cap and include volume licensing, advanced compliance tools, and audit capabilities that the business plans do not. E3 is the most common enterprise entry point. E5 adds the full Defender, Purview, and Power BI Premium stack.
| Feature | E3 | E5 |
|---|---|---|
| Price (per user/mo, annual) | ~$36 | ~$57 |
| Desktop Office apps | Yes | Yes |
| Exchange mailbox | 100GB | 100GB + unlimited archive |
| OneDrive | 1TB (expandable) | 1TB (expandable) |
| Email archiving / In-Place Hold | Yes | Yes |
| Litigation hold | Yes | Yes |
| eDiscovery | Core eDiscovery | Advanced eDiscovery |
| Microsoft Defender for Endpoint | Plan 1 | Plan 2 (full EDR) |
| Defender for Office 365 | Plan 1 | Plan 2 |
| Microsoft Purview | Core DLP | Advanced DLP + Insider Risk |
| Azure AD Premium | P1 | P2 (Identity Protection) |
| Power BI | Not included | Power BI Premium Per User |
| Microsoft 365 Phone System | Not included | Included |
Which Plan is Right for You?
The guidance below is based on organisation type and primary requirements — not on budget alone. Buying down on plan tier to save per-seat cost often leads to purchasing additional add-ons that eliminate the savings.
- Business Basic suits organisations where most users primarily need email, Teams, and basic SharePoint access, and where desktop Office is not required. Frontline workers, operations staff, or supplemental licences for users who work primarily in line-of-business apps.
- Business Standard is the right default for most knowledge-worker organisations up to 300 users. Full desktop Office, Exchange, Teams, and SharePoint in one licence.
- Business Premium is for organisations that need robust device management (Intune), endpoint security (Defender for Business), and identity protection (Azure AD P1) without moving to Enterprise. Healthcare, legal, and financial services businesses in the SMB segment should consider this tier seriously.
- Enterprise E3 is for organisations above 300 users, or those with compliance requirements including email archiving, litigation hold, or eDiscovery. Also required for Unified Label-based sensitivity classification at scale.
- Enterprise E5 is for organisations with advanced security operations, insider risk management, advanced eDiscovery needs, or those that want to consolidate Microsoft 365 Phone System with their productivity licences.
Add-Ons Worth Knowing About
Several Microsoft 365 capabilities are sold as add-ons rather than plan inclusions. These are commonly purchased alongside business or enterprise plans:
| Add-On | What it Adds | Compatible Plans |
|---|---|---|
| Teams Premium | AI meeting intelligence, advanced webinars, custom branding | Any plan with Teams |
| Microsoft 365 Copilot | AI across Word, Excel, Teams, Outlook, and more | Business Standard/Premium, E3, E5 |
| Exchange Online Archiving | Unlimited mailbox archiving | Business Basic, Standard, Premium |
| Microsoft Defender for Business | EDR for SMB (included in Premium) | Business Basic, Standard |
| Power BI Pro | Shared reports and dashboards | Any plan |
| Microsoft 365 Phone System | Cloud PBX / PSTN calling via Teams | Any plan with Teams |
For most growing businesses, Business Standard is the correct starting point. Move to Business Premium as soon as endpoint security, device management, or identity protection becomes a priority — which in 2026 is earlier than most IT teams expect. Enterprise E3 is the obvious migration path once you exceed 300 users or need archiving and eDiscovery. Budget for add-ons when planning total licence cost, particularly if Copilot is part of your AI strategy.