Microsoft 365 plans at a glance
Microsoft sells two families of plans to businesses: Business plans for organisations with up to 300 users, and Enterprise plans with no user limit. On top of that there are F plans for frontline and production staff. The differences are not in email, which is the same Exchange Online service in every plan, but in apps, security, device management and compliance.
| Plan | For whom | Office apps | Security and management |
|---|---|---|---|
| Business Basic | Up to 300 users, browser-based work | Web and mobile | MFA, built-in email protection, basic mobile device management |
| Business Standard | Up to 300 users | Desktop, web and mobile | Same as Basic |
| Business Premium | Up to 300 users | Desktop, web and mobile | Intune, Entra ID P1, Defender for Business, Defender for Office 365 P1, archive up to 1.5 TB |
| Microsoft 365 E3 | No limit | Desktop, web and mobile | Entra ID P1, Intune, core Purview |
| Microsoft 365 E5 | No limit | Desktop, web and mobile | Entra ID P2, Defender XDR, advanced Purview, Teams Phone |
| Microsoft 365 F1 and F3 | Frontline and production staff | F3 web and mobile, F1 read-only | Designed for shared devices |
The questionnaire above gives you an indicative answer for your organisation. Below we explain where the lines between the plans are and what you give up with a cheaper one.
Office 365 or Microsoft 365?
Many people still search for "Office 365", although Microsoft renamed its small business plans. The former Office 365 Business Essentials is now Microsoft 365 Business Basic, Office 365 Business Premium is now Business Standard, and Microsoft 365 Business became Business Premium. The Office 365 name lives on in the Enterprise plans E1, E3 and E5, which cover the collaboration services. Microsoft 365 E3 and E5 go further and add identity protection, device management and security services.
When you compare quotes, check the exact plan name: "Office 365 E3" and "Microsoft 365 E3" are not the same product.
Business Premium vs Standard vs Basic
Business Basic is enough when people work in the browser and on their phones: email, calendar, Teams, SharePoint, OneDrive and the web versions of Word, Excel and PowerPoint.
Business Standard adds the desktop apps for Windows and macOS. You need them for large spreadsheets, VBA macros, complex document layouts or offline work. For most office workstations this is the realistic minimum.
Business Premium has the same apps as Standard and adds security and management. According to Microsoft's documentation it includes Intune Plan 1, Entra ID P1 with Conditional Access, Defender for Business for device protection and Defender for Office 365 Plan 1 with Safe Links and Safe Attachments. The email archive auto-expands up to 1.5 TB, compared with 50 GB in Basic and Standard.
All three plans are designed for organisations with up to 300 users, and the cap applies across all Business plans in a tenant: with 250 Business Premium licences, you can add only 50 more licences of any Business plan.
Why Business Premium is often the right choice
The price gap between Standard and Premium is noticeable, but compare the total cost. Business Premium replaces several tools you might otherwise buy separately: endpoint protection with detection and response (EDR), a mobile device management system and extra email protection against phishing and impersonation.
- Conditional Access lets you set rules such as "email only from managed devices" or block sign-ins from countries where you do not operate.
- Intune handles disk encryption, updates and remote wipe of a lost laptop. A new computer can ship straight from the supplier and set itself up.
- Defender for Business detects suspicious behaviour on devices, not just known malware.
For companies preparing for NIS2, these controls are often part of basic hygiene. Business Standard only has security defaults with mandatory multi-factor authentication: a good start, but no control over devices.
When you need E3 or E5
Above 300 users, Business plans are no longer an option and the choice is between Microsoft 365 E3 and E5. E3 includes the desktop apps, Entra ID P1, Intune and core Microsoft Purview capabilities for retention, eDiscovery and audit.
E5 makes sense when you run a security operations function or face demanding compliance. It adds Entra ID P2, the full Defender XDR stack, advanced Purview with eDiscovery (Premium), Audit (Premium) and Insider Risk Management, as well as Teams Phone with Audio Conferencing.
You can buy E5 with fewer than 300 users too, and you can mix plans: Business Premium for most staff and E5 only for legal or management. Microsoft also offers E7, which combines the E5 capabilities and Microsoft Copilot in one licence.
Frontline workers: F plans
Warehouse staff, drivers, production and retail workers do not need a Business plan. Microsoft 365 F3 includes Teams, web and mobile apps and a 2 GB mailbox. F1 is narrower still: Teams, SharePoint and read-only documents, with no mailbox entitlement. F plans belong to the Enterprise family, so they do not count towards the 300-licence Business cap.
Teams and "no Teams" suites in the EU
Following a European Commission investigation, Microsoft sells its suites in the European Economic Area in two versions: with Teams and without Teams. In September 2025 the Commission accepted Microsoft's commitments, under which suites without Teams must be appreciably cheaper. The minimum difference is EUR 1.50 per user per month for Business Basic, EUR 3 for Business Standard and Premium and EUR 8 for E3 and E5.
If you use Zoom, Webex or Slack, a suite without Teams can be a real saving. If you do use Teams, make sure your quote has the right version, or you will have to buy Teams as a standalone licence.
Copilot, telephony and other add-ons
- Copilot: Copilot Chat is included in Microsoft 365 licences. Copilot that works with your email, documents and meetings needs an add-on licence. Organisations with up to 300 users on Business plans can buy Microsoft Copilot Business, including for suites without Teams. Check whether it pays off with the Copilot ROI calculator.
- Teams Phone: an add-on for Business plans and E3, included in E5. For phone numbers you also need a Calling Plan, Operator Connect or Direct Routing, depending on your operator and country.
Pricing and licensing through a CSP partner
Microsoft updated its Microsoft 365 price lists on 1 July 2026 and added new capabilities at the same time, such as time-of-click URL checks in Business Basic and Standard. Prices vary by country, commitment length and billing frequency. That is why the tool on this page uses editable indicative prices that you replace with the figures from your quote.
You can buy licences directly from Microsoft or through a partner in the Cloud Solution Provider (CSP) programme. Humanfrog is a Microsoft partner and provides Microsoft 365 licences through CSP. You get one invoice, help choosing and combining plans, and the security configuration the plan makes possible. A licence on its own protects nothing: Conditional Access, Intune and Defender have to be switched on with care.
If you are moving email to Microsoft 365, also check the SPF, DKIM and DMARC settings for your domain.
Checklist before you choose
- How many users really need the desktop apps?
- Do you have laptops that leave the office and phones with company email?
- Are you already paying for separate endpoint protection or device management that Business Premium would replace?
- Do you need to keep email for years or hand it over in legal proceedings?
- Do you use Teams or another meeting tool?
- How many users will you have in two years, and are you approaching the 300 cap?
- Do you have frontline staff for whom an F plan is enough?
If you are also deciding whether to run the environment yourself or hand it to a partner, see the guide on IT management. At Humanfrog we help you choose the plans, license them through CSP and set up the environment securely. Get in touch.
