Which Microsoft 365 licence is right for you?

Microsoft 365 comes with quite a few licences, and the names look a lot alike. Business Basic, Business Standard, Business Premium, Apps for business, and then the Enterprise plans E3 and E5. No wonder that many directors and office managers can't see the wood for the trees.

Still, it's worth taking a proper look at this. The right licence saves you money, and more importantly, it determines how well you're protected. In this article, we explain the common SME licences, show in a table where the real difference lies, and help you choose based on what your organisation actually needs.

The common licences in brief

For SMEs, it comes down to a handful of licences in practice. We'll go through them one by one.

Microsoft 365 Business Basic

This is the entry level. You get business email (Exchange), online storage (OneDrive and SharePoint), Microsoft Teams and the Office apps in the browser. What you don't get: the Office programs to install on your computer. So you work entirely online.

Basic is suitable for employees who work lightly and on the web, or for anyone who only needs email and a calendar.

Microsoft 365 Apps for business

An odd one out. This plan does give you the Office apps to install (Word, Excel, PowerPoint, Outlook) plus OneDrive storage, but without business email via Exchange and without Teams. In practice, few SMEs choose this, because you then have to arrange email separately.

Microsoft 365 Business Standard

The popular middle tier. You get everything in Basic, plus the full Office apps to install on your computer. For many SME organisations, this feels like the complete package: familiar programs, business email, Teams and storage.

The security here, however, remains limited to the basics. That's exactly where Business Premium comes in.

Microsoft 365 Business Premium

Premium contains everything in Standard, and adds a solid layer of security and management on top. This is the most important difference to understand, so we'll go into it in more detail further on. In short, you get protection against attacks, control over devices and better control over your data.

A detour: Enterprise E3 and E5

You can purchase the Business licences for up to 300 users. Larger organisations, or companies with very specific requirements, end up with the Enterprise plans E3 and E5. These offer even more extensive options for security, compliance and analytics, at a higher price. For most SMEs with up to 150 employees this isn't necessary, and Business Premium is more than enough.

The real difference: Standard versus Premium

This is the choice that matters for SMEs. At first glance, Standard and Premium look the same: the same Office apps, the same email, the same storage. The difference lies entirely in security and management. With Business Premium you get, among other things, the following:

• Microsoft Defender for Business. Protection against viruses, ransomware and phishing on your computers and mobile devices. An attack is automatically detected and blocked.
• Intune (device management). This lets you centrally manage all laptops, phones and tablets. You can enforce settings, and remotely wipe a device in case of loss or theft.
• Entra ID P1. More extensive control over who is allowed to log in and under what conditions, for example with rules based on location or device (conditional access).
• Azure Information Protection. This lets you label and protect sensitive documents, so they don't end up outside your organisation just like that.

It comes down to this: Premium doesn't just deliver your apps, it also actively protects your organisation and gives you a grip on devices and data. For a relatively small price difference per user, you get security that you would otherwise have to buy separately, and at a higher cost.

Comparison table

| Feature | Business Basic | Business Standard | Business Premium |
|---|---|---|---|
| Business email (Exchange) | Yes | Yes | Yes |
| Teams, OneDrive, SharePoint | Yes | Yes | Yes |
| Office apps in the browser | Yes | Yes | Yes |
| Office apps to install | No | Yes | Yes |
| Defender for Business | No | No | Yes |
| Intune (device management) | No | No | Yes |
| Entra ID P1 | No | No | Yes |
| Data protection (AIP) | No | No | Yes |
| Suitable for a NIS2 approach | Limited | Limited | Yes |
| Price (indicative, per user/month, excl. VAT) | around 6 euros | around 12.50 euros | around 22 euros |

The prices mentioned are indicative and change regularly. Always request an up-to-date calculation based on your situation.

How do you choose the right licence?

Go through the following questions. They'll quickly point you to the package that fits.

Do you need the desktop apps?

Do your people work with Word and Excel on their computer, including offline? Then Basic and Apps for business drop out, and you end up with Standard or Premium. Does everyone work entirely in the browser and is email and a calendar enough? Then Basic may be sufficient.

How much security do you want?

This is the question that most SMEs underestimate. With Standard alone, you're only limitedly protected against phishing, ransomware and stolen passwords. If you want active protection that keeps pace with today's threats, you need Premium.

Do you want a grip on devices?

Do your people work on various laptops and phones, including personal devices and remotely? Then you'll want central management and the ability to wipe a lost device. That's only available in Premium, via Intune.

Are you dealing with NIS2 or other compliance requirements?

More and more SME organisations are dealing with legislation such as NIS2, which requires you to demonstrably have your digital security in order. The extra capabilities in Business Premium help you with that concretely. Not sure whether your company falls under NIS2 and what that means? Our decision tool will get you on your way.

Conclusion: for most SMEs, Business Premium is the best choice

If you take security seriously, and these days everyone should, then Business Premium is the smartest choice for most SME organisations. You get everything in Standard, plus a complete security layer that you would otherwise have to buy separately and at a higher cost. For a limited price difference per user, you protect your entire organisation and keep a grip on devices and data.

Standard can be a fine choice for companies that have arranged their security in another way, or for specific roles that don't handle sensitive data. Basic suits employees who work lightly and on the web. And if you grow towards the limit of 300 users with special requirements, it pays to look at E3 or E5.

The most important thing isn't just choosing the right licence, but also setting it up properly. A Business Premium licence whose security hasn't been activated doesn't protect you. That's often where the gains are, and that's where we help.

Need help with the choice and the setup?

IT-gemak helps SME organisations without their own IT department to choose the right Microsoft 365 licence and to set it up really well. We look at how your team works, advise the package that fits, and make sure all security is actually switched on. One dedicated team, one fixed rate, personal and pragmatic.

Read more about our approach on Microsoft 365 & the modern workplace, about Microsoft 365 security and licences and about our broader Microsoft security.

Schedule a no-obligation advisory call and find out which Microsoft 365 licence best suits your organisation.