Microsoft 365 Licensing Explained (Small Business Plans)

Microsoft 365 licensing for a small business comes down to three main plans – Business Basic, Business Standard and Business Premium – priced per user per month, plus optional add-ons. The right choice depends on whether you need desktop apps and how seriously you take security.

The three business plans

  • Business Basic – web and mobile Office apps, email, Teams, 1 TB OneDrive. No desktop apps. Cheapest.
  • Business Standard – adds the installed desktop Office apps (Word, Excel, Outlook, etc.). The common choice.
  • Business Premium – adds Defender endpoint protection, Intune device management, conditional access and advanced email security (see what Business Premium includes). The right choice for most firms handling client data.

Add-ons you might need

  • Teams Phone – to use Teams as your phone system
  • Copilot – the AI assistant (see is Copilot worth it)
  • Extra storage, Exchange archiving, or higher compliance tiers as you grow
  • Third-party backup – not a Microsoft licence, but essential (365 is not backed up)

Licensing a team sensibly

  • Most staff on the same plan for consistent security – mixing plans creates gaps
  • Frontline or shared-device staff can use cheaper Frontline (F) plans
  • Buy annually for the discount once you are settled
  • Review at renewal – remove licences for people who have left

Need help with Microsoft 365? See our managed IT support or talk to our Edmonton team.

Microsoft 365 guides

Frequently asked questions

What is the difference between Business Standard and Business Premium?

Standard gives you the desktop Office apps and email. Premium adds endpoint security, device management, conditional access and advanced email protection.

Do I need desktop Office apps or is web enough?

Web apps are fine for light use. If you work with complex Excel models, large documents, or need Outlook offline, get Standard or Premium for the desktop apps.

Can we mix Microsoft 365 plans?

Technically yes, but mixing security tiers leaves gaps. Keep most staff on the same plan; use Frontline plans only for genuine shared-device roles.

How does Scandifix help?

We work out the right plan mix for your team, buy and assign the licences, and review them at renewal so you are not paying for people who have left.

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