Microsoft 365 for SMBs: pick a plan without losing a weekend

Microsoft 365 plans confuse people for a reason: there are several, the differences are not obvious, and the marketing pages are written for everyone at once. Here is the working version we use with clients.

Business Basic

The cheapest option. Web Outlook, Teams, OneDrive, SharePoint — but no installed Office apps. Pick this only if your team genuinely lives in the browser and you do not care about advanced security.

Business Standard

Adds the installed Word, Excel, PowerPoint, Outlook on up to five devices per user. The default choice for small teams that work in documents.

Business Premium

Standard, plus the Microsoft 365 security stack: Intune for device management, Defender for Business for endpoint protection, Conditional Access through Azure AD Premium P1, DLP and Information Protection. For most SMBs above ten users, this is the right baseline.

E3 / E5

Enterprise tiers. E3 lifts limits and adds Power BI Pro, EOP and basic compliance. E5 adds Defender for Office 365 P2, Defender for Endpoint P2, advanced compliance, Power BI Pro and Phone System. Worth it for regulated industries, identity-heavy environments, or anyone serious about XDR.

Common mistakes

• Buying Basic to save money, then bolting on add-ons that cost more than Standard would have.
• Skipping Premium, then paying for a third-party MDM and antivirus. The integrated stack is almost always cheaper end to end.
• Buying E5 by default. Most companies do not use half of it.

A simple way to choose

1. Under 10 users, fully remote, browser-first → Business Basic.
2. Under 25 users, normal office work, low risk → Business Standard.
3. Anything above 10 users that handles customer data → Business Premium is the floor.
4. Regulated, large, or identity-heavy → E3 or E5, with EMS where relevant.

If you would like us to look at your tenant and recommend the cleanest path, we can audit it for free.