Microsoft 365 Licensing Guide for SMBs: Business Standard vs. Business Premium

4 min. readlast update: 09.29.2024

Licensing Guide for SMBs: Microsoft 365 Business Standard vs. Business Premium

Microsoft 365 offers two popular plans for small and medium-sized businesses (SMBs): Business Standard and Business Premium. While both plans provide essential productivity tools, there are key differences in the security, device management, and additional features they offer. This guide will help you understand which plan best fits your organization's needs.

Microsoft 365 Business Standard

Business Standard is designed for SMBs that need essential productivity tools without advanced security and device management capabilities. 

Key Features:
1. Office Applications:
   - Full versions of Microsoft Word, Excel, PowerPoint, Outlook, and Access (PC only).
   - Web versions of Office apps (Word, Excel, and PowerPoint) with real-time collaboration.
  
2. Collaboration Tools:
   - Microsoft Teams for meetings, chat, and collaboration.
   - OneDrive for Business with 1 TB of cloud storage per user.
   - SharePoint Online for file sharing and collaboration within teams.

3. Email and Calendar:
   - Exchange Online with 50 GB mailbox per user, professional email, and shared calendar.

4. Business Apps:
   - Access to Microsoft Bookings, Outlook Customer Manager, and other tools for managing appointments and customer relations.

Pricing:
- $12.50 per user/month (annual commitment).

Who Should Choose Business Standard?
- SMBs that need basic productivity tools and collaboration capabilities without the complexity of device management and advanced security.
- Ideal for companies that use personal devices and do not require centralized security policies for mobile device management (MDM).

Microsoft 365 Business Premium

Business Premium builds on the features of Business Standard by adding advanced security, compliance, and device management capabilities. It is designed for organizations that need to secure their data, manage devices, and protect against cyber threats.

Key Features:
1. All Business Standard Features:
   - Includes everything from Business Standard (Office apps, Teams, OneDrive, SharePoint, and Exchange).

2. Advanced Security:
   - Microsoft Defender for Office 365: Protection against malware, phishing, and other advanced threats.
   - Azure Active Directory Premium P1: Enables multi-factor authentication (MFA), conditional access, and single sign-on (SSO) for apps.
   - Information Protection: Helps safeguard sensitive information through classification and labeling.

3. Mobile Device Management:
   - Microsoft Intune: Full mobile device management (MDM) and mobile application management (MAM). Manage company-owned and bring-your-own-device (BYOD) policies, enforce security requirements, and remotely wipe corporate data from lost or stolen devices.

4. Advanced Threat Protection:
   - Conditional Access: Use identity and location-based rules to control who can access company resources.
   - Device Protection: Includes Windows 10/11 Business with automatic updates and strong encryption.

5. Compliance Tools:
   - Data Loss Prevention (DLP) policies to prevent sensitive data from being shared inappropriately.
   - Built-in auditing and compliance tools for easier tracking of activities and ensuring adherence to regulations.

Pricing:
- $22.00 per user/month (annual commitment).

Who Should Choose Business Premium?
- SMBs that require advanced security features like multi-factor authentication, device management, and email threat protection.
- Businesses that need centralized control over devices and data, ensuring compliance with security standards and protecting against sophisticated cyber threats.
- Ideal for companies with remote or hybrid workforces that use a mix of company and personal devices for business operations.

Key Differences: Business Standard vs. Business Premium

Microsoft 365 Business Plans User Limit

When selecting Microsoft 365 Business plans for your organization, it's important to understand the user limitations tied to these plans. Microsoft 365 Business plans, such as Business Basic, Business Standard, and Business Premium, are designed for small to medium-sized businesses and are limited to a maximum of 300 users per plan.

Key Limitation:
- Microsoft 365 Business Plans cannot be mixed and matched for more than 300 users in total across the organization.
  - For example, if you purchase 200 Business Premium licenses and 100 Business Standard licenses, that already brings you to the 300-user limit. If your organization grows beyond that, you’ll need to switch to an enterprise-level plan.

Conclusion: Which Plan Is Right for You?

- Choose Business Standard if your organization is focused primarily on productivity and collaboration tools without the need for centralized security controls. It’s ideal for small businesses that do not have complex security or device management requirements.
  
- Choose Business Premium if your organization requires advanced security, mobile device management, and compliance capabilities. This plan is perfect for SMBs that handle sensitive data, operate in regulated industries, or have remote/hybrid workforces needing robust device and data security.

Final Thoughts

Upgrading to Microsoft 365 Business Premium offers better protection against today’s advanced threats and ensures that your business is ready for future growth. However, if security and device management are not your primary concerns, Business Standard still provides the essential productivity tools needed to run your operations smoothly. Carefully evaluate your organization’s specific needs to choose the right plan.

For more details on these plans, visit [Microsoft 365 Business Plans](https://www.microsoft.com/en-us/microsoft-365/business/compare-all-microsoft-365-business-products).

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