Microsoft 365 business plans compared
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Part of the Microsoft 365 for Business series. Related: How To Migrate To Microsoft 365What Is Microsoft 365 Business
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Microsoft 365 business plans break down into three core tiers: Business Basic (web and mobile Office apps, email, Teams and storage), Business Standard (adds full desktop Office apps and webinar tools), and Business Premium (adds advanced security, Defender and Intune device management). All three are for organizations up to 300 users and are billed per user, per month in Canadian dollars, with cheaper rates on annual commitments.
Business Basic — the entry tier
Business Basic is the lowest-cost plan and is built for staff who work primarily in a web browser. It includes:
- Web and mobile versions of Word, Excel, PowerPoint and Outlook.
- Business email with a 50 GB mailbox on your own domain.
- Microsoft Teams for chat, meetings and calls.
- 1 TB of OneDrive cloud storage per user and SharePoint team sites.
The trade-off: you do not get the installed desktop Office apps. For frontline workers, shared-computer environments, or staff who only need email and light document editing, Basic delivers excellent value. Heavy Excel or Word users will find the web apps limiting and should look at Standard.
Business Standard — the popular middle choice
Business Standard is the plan most office-based businesses choose. It includes everything in Basic, plus:
- Full desktop versions of Word, Excel, PowerPoint, Outlook, OneNote and Access installed on your computer.
- Webinar hosting and customer-appointment tools (Microsoft Bookings).
- Teams advanced meeting features.
For a typical knowledge-worker — someone living in Outlook and Excel all day — Standard is the sweet spot. The desktop apps work offline, handle large files smoothly, and provide the full feature set that the web versions trim down. Most small and mid-sized Canadian companies start here unless they have specific security requirements that push them to Premium.
Business Premium — security and device management
Business Premium includes everything in Standard and adds the security stack that regulated and data-sensitive businesses need:
- Microsoft Defender for Business — advanced threat protection against malware, phishing and ransomware.
- Microsoft Intune — manage and secure company and personal devices, enforce encryption, and wipe lost laptops or phones remotely.
- Conditional access and Azure AD Premium — control who signs in, from where, and on which devices.
- Data-loss prevention and information protection tools.
For Canadian businesses handling client financial, health or personal data under PIPEDA and Law 25, Premium is often the right baseline. The added per-user cost is usually less than buying these security products separately.
How to choose the right plan for your team
The decision usually comes down to two questions: do staff need desktop apps, and how sensitive is your data?
- Choose Basic if employees mostly use email and browser-based tools, or share computers.
- Choose Standard if staff need installed Office apps and offline work — the most common case.
- Choose Premium if you handle regulated or confidential data and want built-in advanced security and device control.
You can mix plans within one organization — for example, Standard for the office team and Premium for the leadership and finance staff who access the most sensitive information. A short licensing review prevents both overspending on features you will not use and the bigger risk of under-securing accounts that handle private data.
FAQ
What is the main difference between Business Basic and Standard?
The key difference is the desktop apps. Basic gives you only the web and mobile versions of Office, while Standard adds the full installed desktop versions of Word, Excel, Outlook and more. If your staff need to work offline or handle large, complex files, Standard is worth the higher price; otherwise Basic covers email and collaboration well.
Is Business Premium worth the extra cost?
For businesses handling sensitive client data, yes. Premium adds Microsoft Defender, Intune device management and conditional access — security tools that would cost more if purchased separately. Under PIPEDA and Quebec's Law 25, these controls help you protect personal information and demonstrate due diligence, making Premium a sound investment for regulated industries.
Can I mix different plans in the same company?
Yes. You can assign different plans to different users within one Microsoft 365 tenant. A common approach is Business Standard for general staff and Business Premium for executives, finance and anyone handling sensitive data. This lets you control costs while giving the highest-risk accounts the strongest security.
How many users can be on a Microsoft 365 business plan?
Microsoft 365 Business plans support up to 300 users. If your organization grows beyond that, you move to the Enterprise (E3 or E5) licensing family, which offers the same apps with expanded compliance, analytics and security features designed for larger workforces.