Which Microsoft 365 License Is Right for Your Business?
- Microsoft 365
- Licensing
- Small Business
- Cybersecurity
Picking a Microsoft 365 license is one of those jobs that looks simple until you open the pricing page and find a wall of plans, add-ons, and feature checkmarks. The good news is that for most businesses the decision comes down to a handful of options, and once you know what each one is built for, the right choice is usually obvious.
Here is the short version, then a quick breakdown of each plan and who it suits.
The short answer
For most small to medium businesses (up to 300 users), Microsoft 365 Business Premium is the best all-round choice. It gives you the full set of desktop Office apps, cloud collaboration through Teams and OneDrive, and proper enterprise-grade security baked in, including Microsoft Defender for Business and Intune for managing devices. You get most of what the big enterprise plans offer without the enterprise price tag.
That said, the right fit always depends on your team. Plenty of businesses save money by mixing plans across different roles, which I will come back to at the end.
The options at a glance
| Plan | Best for | Desktop apps | Advanced security | Approx. price (AU, per user/month) |
|---|---|---|---|---|
| Business Basic | Light and remote users | Web and mobile only | No | ~$9.40 |
| Business Standard | Productivity-focused teams | Yes | No | ~$18.70 |
| Business Premium | Most SMBs (best overall) | Yes | Yes | ~$32.90 |
| Enterprise E3 / E5 | 300+ users, heavy compliance | Yes | Advanced | Varies |
Prices are approximate, in Australian dollars, on an annual commitment, and current at the time of writing. Microsoft adjusts pricing regularly, so always confirm on the official plans page before you commit.
1. Microsoft 365 Business Premium (best overall)
Best for: businesses that want full desktop apps, solid cybersecurity, and device management, without paying for a full enterprise plan.
This is the plan I point most businesses toward. It includes everything in Standard, then layers on the security and management capabilities that genuinely matter once you have staff, devices, and data to protect. You get advanced cyberthreat protection, identity and access management, and Intune, which lets you secure company data on staff laptops and phones even when those devices are out in the wild.
For a business that does not have a large internal IT team, Business Premium is the sweet spot. The security tooling alone tends to justify the difference over Standard, especially if you would otherwise be bolting on third-party products to cover the same ground.
Approximate price: AU$32.90 per user per month on an annual commitment.
2. Microsoft 365 Business Standard (best for productivity)
Best for: teams that need the full installed Office suite and business email, but already have external IT support or a separate security stack.
Standard covers the productivity essentials very well. You get the premium desktop apps (Word, Excel, Outlook, and the rest), 1 TB of cloud storage per user, custom business email, and Microsoft Teams. What it does not include is the advanced security and device management you get in Premium.
If someone else is handling your security and endpoint management, Standard can be a sensible, cost-effective choice. If not, you are usually better off stepping up to Premium rather than buying the gap separately.
Approximate price: AU$18.70 per user per month on an annual commitment.
3. Microsoft 365 Business Basic (best for light and remote users)
Best for: frontline workers, temporary staff, or anyone who only needs lightweight web apps and email.
Basic is the lean option. You get the web and mobile versions of the Office apps, business email, and Teams. The key thing to note is that it does not include the installed desktop apps, so it is not the plan for anyone who lives in Excel all day.
Where it shines is roles that mostly need email, chat, and the occasional document. Think warehouse staff, casuals, or remote workers who do everything through a browser.
Approximate price: AU$9.40 per user per month.
4. Enterprise plans (E3 and E5)
Best for: businesses with more than 300 employees, or organisations with serious compliance and regulatory requirements.
The enterprise plans are where you go when the business plans run out of room, either because you have outgrown the 300-user cap or because you need advanced compliance, security, and governance controls. E5 in particular bundles in capabilities like advanced threat protection, information protection, and analytics that go well beyond what the business tier offers.
Pricing here varies a lot depending on add-ons and your exact compliance needs, so it is best treated as a conversation rather than a fixed sticker price.
You can mix and match
One of the most useful things to know is that you do not have to put everyone on the same plan. You can mix licenses across your team to match the work people actually do.
A common example: put your warehouse or frontline staff on Business Basic, and your office team on Business Premium. The people who only need email and a browser cost you a fraction of the price, and the staff handling sensitive data get the full security treatment. Done well, this can take a meaningful chunk out of your monthly bill without compromising on protection where it counts.
How to decide
If you want a simple rule of thumb:
- Need desktop apps and proper security, and you are under 300 users? Business Premium.
- Need desktop apps but security is handled elsewhere? Business Standard.
- Only need web apps and email? Business Basic.
- Over 300 users or heavy compliance demands? Enterprise E3 or E5.
And remember you can blend these across different roles to keep costs sensible.
When you are ready to compare the full feature lists and check current pricing, head to the official Microsoft 365 Business plans page. If you would rather have someone map your team to the right mix, that is exactly the kind of thing we help with at GRB Digital.
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