Microsoft 365 Plans: Which One Is Right For Your Business?
For business owners and IT professionals considering a Microsoft 365 plan, picking the right one is crucial.
The subscription-based Microsoft 365 (formerly Office 365) provides a comprehensive suite of tools for productivity and collaboration, all bundled into one package. By exploring different Microsoft 365 plans for business, you can ensure that your team gets the tools they need for productivity, security, and collaboration—resulting in better efficiency and more rapid growth.
This blog will help you determine which Microsoft 365 plan is right for your business by covering:
The benefits of Microsoft 365 for businesses
The different types of Microsoft 365 business plans
The different types of Microsoft 365 enterprise plans
Factors to consider when choosing the right plan
The role of a Microsoft Cloud Solution Provider
Benefits of Microsoft 365 for Businesses
If you're considering upgrading to the platform, here are five benefits of Microsoft 365:
Working remotely becomes easy.
Microsoft 365 enables seamless remote work by providing cloud-based access to all your essential applications and files from any device. With tools like Teams and SharePoint, you can collaborate in real-time, ensuring productivity isn't hindered by location.
Apps help boost productivity and collaboration.
The suite offers integrated applications like Word, Excel, PowerPoint, and Teams that streamline workflows and enhance team collaboration. Features such as co-authoring and shared calendars keep everyone in your organization aligned and working efficiently.
Security features are built-in.
Microsoft 365 includes security measures like advanced threat protection, data encryption, and multi-factor authentication. These built-in features help safeguard your business against cyber threats and ensure compliance with industry regulations.
Administration becomes simple.
A centralized admin portal allows for easy management of user accounts, security settings, and updates. This simplifies IT administration, reduces overhead, and lets you focus more on your core business activities.
Payments are flexible.
With various subscription plans and payment options, Microsoft 365 offers financial flexibility. You can choose monthly or annual payments and adjust your subscription as your business needs change, ensuring cost-effective budgeting.
Exploring Microsoft 365 Plans for Business
If you have an organization with up to 300 employees, a Microsoft 365 plan for small businesses may be for you. Each plan provides a range of features and capabilities tailored to your organization’s needs, and all plans include secure cloud services, as well as web and mobile apps.
Here’s an overview of the Microsoft 365 plans for small business:
Microsoft 365 Business Basic is the most entry-level Microsoft 365 plan. This plan offers essential tools to kick-start your business, supporting up to 300 employees with identity and access management, custom business email, and web and mobile versions of key Microsoft apps like Word, Excel, and PowerPoint. You’ll also get 1 TB of cloud storage per employee, along with Microsoft Teams for video conferencing. Additional features include over 10 business apps, automatic spam and malware filtering, and 24/7 support. Further, secure cloud services include Teams, OneDrive, SharePoint, and Exchange. Best suited for small businesses or startups that need essential productivity tools without the need for desktop apps, this plan is a cost-effective solution.
Microsoft 365 Business Standard plan is a level-up from the previous package, including everything in it plus desktop versions of Word, Excel, PowerPoint, and Outlook. It offers enhanced features like webinars with attendee registration and reporting, collaborative workspaces with Microsoft Loop, and video editing tools with Microsoft Clipchamp. You get access to desktop, web, and mobile apps, as well as secure cloud services like Teams and OneDrive. This plan is ideal for small to medium-sized businesses that need robust collaboration and productivity tools—especially those that conduct webinars, need collaborative workspaces, and require secure cloud services for file sharing and communication.
Microsoft 365 Business Premium plan is the most robust out of the Microsoft 365 business plans, including everything in Business Standard, along with advanced identity and access management, enhanced protection against cyber threats like viruses and phishing, and enterprise-grade device and endpoint security. Microsoft 365 Business Premium also features tools to discover, classify, and protect sensitive information, making it the perfect fit for businesses that need advanced security and compliance features.
Microsoft 365 Apps for Business plan includes desktop versions of Word, Excel, PowerPoint, and Outlook, along with 1 TB of cloud storage per user and 24/7 phone and web support. Unlike the other business plans, this one focuses on providing core desktop apps and storage without additional cloud services, security features, or collaboration tools like Microsoft Teams, SharePoint, or advanced cyber threat protection. This plan is best suited for businesses that primarily need access to core desktop apps without the need for advanced cloud services or collaboration tools.
Plan Name | Core Differences | Best For |
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Microsoft 365 Business Basic |
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Businesses that need basic collaboration tools and cloud services without desktop Office apps. A supplemental Entra ID Plan 1 license is strongly recommended to ensure adequate security. |
Microsoft 365 Apps for Business |
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Businesses that need Office apps across devices but do not require additional cloud services |
Microsoft 365 Business Standard |
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Businesses that need full Office apps and a wide range of productivity services. A supplemental Entra ID Plan 1 license is strongly recommended to ensure adequate security. Alternatively, consider Microsoft 365 Business Premium for better value. |
Microsoft 365 Business Premium |
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Businesses that need advanced security measures and device management in addition to productivity tools |
Exploring Microsoft 365 Enterprise Plans
For organizations with over 300 employees, Microsoft 365 Enterprise plans offer three tiers. Each is designed for companies with advanced security and compliance requirements.
Here’s a breakdown of each:
Microsoft 365 E3 plan includes a full suite of Microsoft 365 apps for desktop and mobile, Windows for Enterprise, 1 TB of cloud storage per user, and core security and identity management. It covers a wide range of apps like Microsoft Publisher, Loop, and Clipchamp. This plan is perfect for enterprises that need a comprehensive suite of productivity tools, secure cloud storage, and core security and identity management features. Plus, it’s ideal for organizations that require both desktop and mobile access to apps.
Microsoft 365 E5 plan includes everything in Microsoft 365 E3, plus advanced security and compliance features and scalable business analytics with Power BI Pro. This plan is great for larger organizations needing advanced security, compliance, and analytics with a robust set of tools, but at a higher price. It’s best suited for large enterprises that require the highest level of security, compliance, and analytics capabilities.
Microsoft 365 F3 plan includes web and mobile versions of Microsoft 365 apps with standard security features, a central hub for collaboration, and custom automation apps. Key apps and services included are Word, Excel, PowerPoint, and more, along with tools for task automation and process management. This plan works well for enterprises with a large, mobile workforce, such as retail, manufacturing, hospitality, and service industries.
Plan Name | Core Differences | Best For |
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Microsoft 365 E3 |
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Enterprises needing comprehensive productivity tools with advanced security and device management |
Microsoft 365 E5 |
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Enterprises requiring the highest level of security, compliance, and analytics capabilities |
Microsoft 365 F3 |
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Organizations with frontline workers needing basic productivity and collaboration tools |
Choosing the Right Plan: Factors to Consider
Before you feel overwhelmed about how to choose the right plan, ask yourself the following questions:
How big is my company?
What are my specific business needs?
What are my long-term goals, and which plan will help me get there?
What is my budget?
By evaluating these factors, you can select a Microsoft 365 plan that aligns with your company's size, needs, goals, and budget, ensuring you get the most value from your investment.
The Role of a Microsoft Cloud Solution Provider
A Cloud Solution Provider (CSP)—like IX Solutions—is an authorized partner who delivers Microsoft cloud services, such as Microsoft 365, with the goal of offering tailored solutions and value-added services. CSPs can help you navigate your options and get the most out of your Microsoft 365 investment with ongoing support, ensuring smooth operations and quick issue resolution.
To ensure you make the best decision on your Microsoft 365 plan, consider partnering with a Microsoft CSP like IX Solutions for personalized advice and support.