Key takeaways

• Both Microsoft 365 Business Standard and Premium include core Office apps, cloud storage and collaboration tools for small and medium businesses.
• Premium adds advanced security features like device management, threat protection and data safeguards, ideal for businesses handling sensitive information.
• Choose Standard for productivity essentials at a lower cost, or Premium if security and compliance are top priorities.

Microsoft 365 is a suite of cloud-based applications and tools, designed to fuel productivity and collaboration across businesses of all shapes and sizes. It’s full of well-known tools you already know and use, including Word, Outlook and Excel. At Infinity Group, we help organisations harness the full power of Microsoft 365.

For full access to Microsoft 365, you need licenses. And Microsoft offer several license types, designed for different needs and budgets. The two main options on offer for businesses (classed as those with less than 300 users) are Microsoft 365 Business Standard and Microsoft 365 Business Premium.

In this guide, we explore the key differences between Microsoft 365 Business Standard vs Premium and how to choose the best option for your organisation.

What’s included in Microsoft 365 Business Standard vs Premium?

Before choosing any Microsoft 365 license, you need to know what’s included. We’ve broken it down below:

What’s in Microsoft 365 Business Standard?

Within Microsoft 365 Business Standard, you will find:

• Word
•  Excel
• PowerPoint
• Teams
• OneDrive
• Outlook
• SharePoint
• Exchange
• Additional apps like Planner, Forms, Clipchamp and Bookings
• Custom business email
• 1 TB of cloud storage per user
• Basic admin centre
• Basic security features, including spam filtering, encryption and two-factor authentication

What’s in Microsoft 365 Business Premium?

Microsoft 365 Business Premium includes everything that’s in Business Standard, plus:

• Advanced threat protection and data loss prevention
• Compliance centre
• Access to Microsoft Intune, Endpoint Manager and Azure AD

This gives you advanced security and management capabilities, alongside access to core Microsoft productivity tools.

The price of Microsoft 365 Business Standard vs Premium_

Microsoft 365 licenses are costed per user, per month (with an annual commitment that auto-renews unless you specify otherwise).

A Microsoft 365 Business Standard license costs £9.60 per user, per month.

A Microsoft 365 Business Premium costs £16.90 per user, per month.

You can also try both free for one month.

What are the key differences between Microsoft 365 Business Standard vs Premium?

Microsoft Business Standard vs Premium have a large overlap when it comes to the tools available, but there are distinct differences to be aware of.

First is the price. Business Premium is nearly double the cost of Business Standard, which may make it less attainable for businesses on a small budget.

However, you do get more for the increased cost associated with Business Premium. The most notable are the advanced security features, like data loss prevention. If you handle sensitive information or work in a heavily regulated industry, Business Premium is more likely to meet your compliance needs and reduce risk.

Premium also offers comprehensive device and endpoint management through Microsoft Intune, making it easier to manage and secure all devices used by employees.

In addition to Intune, Business Premium includes Microsoft Defender for Business, which brings enterprise-grade endpoint protection to SMBs. This tool helps IT teams detect and respond to sophisticated threats like ransomware, leveraging automated investigation and remediation to reduce manual workload.

You also get Azure Active Directory Premium P1, enabling advanced identity and access management. Features like Conditional Access and Multi-Factor Authentication (MFA) allow IT leaders to enforce granular access policies based on user risk, device compliance or location – essential for implementing a Zero Trust security model. These capabilities support regulatory compliance and reduce reliance on manual IT processes.

What about Copilot?

It’s important to note that Microsoft 365 Copilot is not included by default in either Business Standard or Business Premium. It’s available as a paid add-on license. Both plans are eligible, but Premium offers deeper integration and management capabilities that make deploying Copilot more effective across an organisation.

With Business Premium, IT leaders benefit from enhanced identity protection via Microsoft Entra ID, endpoint security through Microsoft Defender, and device management with Intune, all of which support secure and compliant use of Copilot. These tools ensure that Copilot’s AI-powered features (like summarising meetings in Teams, drafting emails in Outlook, and automating tasks in Excel) are grounded in organisational data and governed by robust access controls.

While Business Standard users can access the same Copilot features, they may lack the advanced controls needed to manage data access, device compliance and user identity at scale.

Are there other licensing options for Microsoft 365?

When it comes to Microsoft 365, you aren’t just restricted to Business Standard and Premium.

Other options include:

• Microsoft 365 Business Basic (priced at £4.60 per user, per month), which provides essential cloud-based productivity tools like email, calendar and online versions of Office apps
• Microsoft 365 Apps for business (priced at £8.10 per user, per month), which provides desktop versions of Office apps without any cloud-based services

However, both these options are more limited, which is why Standard and Premium tend to be more popular choices.

There are also enterprise licenses, though these are aimed at organisations with more than 300 users. If this applies to your organisation, our E3 vs E5 guide will take you through the different options.

Which should you choose?

There are many factors to consider when choosing the right license for your needs. You want to pick an option that offer you the tools and support you need, but without features that aren’t used. This ensures maximum return on investment.

Generally speaking, if you don’t require advanced security features, Microsoft 365 Business Standard should be suitable for you. This will give you access to core tools, like Outlook, Word and Teams, so you can drive productive working across hybrid environments.

But, with cyber risk becoming an increasing concern, many businesses will benefit from the advanced protection offered by Business Premium. This gives you access to the tools you need, alongside robust security features that grant peace of mind.

However, the best choice for you will depend on your budget, needs and priorities as a business. Take time considering the options and don’t be afraid to reach out to discuss it further.

In the meantime, if you’re still thinking about which license to choose, download our table below to see every option compared, side-by-side.