Microsoft 365 Business Standard vs. Business Premium: What’s the Difference and Which Should You Choose?

Microsoft 365 has become the go-to productivity suite for small and midsize businesses. It includes everything most businesses need—email, file storage, collaboration tools, and the latest versions of Microsoft Office apps. But choosing between plans can be confusing, especially when the two most popular small business plans—Microsoft 365 Business Standard and Business Premium—sound almost identical.

They share many of the same core features, but the key differences come down to security and device management.

If you’re wondering which plan is right for your business, this guide will break it down clearly.

What Both Plans Have in Common

Let’s start with what Microsoft 365 Business Standard and Business Premium both include:

✅ Email & Calendar (Exchange Online)
Each user gets a 50 GB mailbox with custom domain email (e.g., [email protected]) and shared calendars through Outlook.

✅ Office Apps (Word, Excel, PowerPoint, Outlook, Publisher, Access)
The full suite of Microsoft Office apps, installable on up to 5 PCs or Macs per user, plus mobile and web versions.

✅ OneDrive for Business
1 TB of personal cloud storage per user for secure file storage and syncing across devices.

✅ Microsoft Teams
A powerful collaboration platform for chat, video conferencing, file sharing, and internal communication.

✅ SharePoint Online
Internal file sharing and team-based document collaboration.

✅ Bookings, Forms, Planner, Loop, and more
Useful productivity and scheduling tools included to help streamline business operations.

Where They Start to Differ

The main difference is that Business Premium includes advanced security features and device management tools that Standard does not. If your business is in a regulated industry, handles sensitive data, or wants better control over its devices and users, these differences matter.

Business Standard: Great for Productivity

Microsoft 365 Business Standard is ideal for businesses that:

• Need the core Microsoft apps and collaboration tools
• Don’t have advanced compliance or cybersecurity needs
• Manage fewer devices or are okay with basic controls

It’s focused on getting work done efficiently—with Outlook, Teams, Word, Excel, and all the tools your team expects—but it doesn’t include much in the way of cybersecurity or IT control.

Think of it as the productivity-only plan.

Business Premium: Adds Security & Device Management

Microsoft 365 Business Premium includes everything in Business Standard plus robust cybersecurity, identity protection, and endpoint management.

Here’s what you get in Premium that’s missing in Standard:

1. Microsoft Defender for Business

This is Microsoft’s next-gen antivirus and endpoint protection solution. It helps detect and block ransomware, phishing, malware, and zero-day threats. It also gives IT admins visibility into threats across all devices.

⚠️ Why it matters: Business Standard doesn’t include built-in antivirus protection for your computers. If you want an all-in-one security suite, Premium is the better pick.

2. Intune (Endpoint Manager)

Microsoft Intune lets you remotely manage company devices (Windows, Mac, iOS, Android). You can enforce security settings, control which apps are allowed, and even wipe data from lost or stolen devices.

⚠️ Why it matters: With more remote workers and BYOD (bring your own device) setups, being able to secure and manage all endpoints is critical.

3. Azure Active Directory Premium P1

This adds conditional access, self-service password resets, and better control over how users log into Microsoft services. It also enables single sign-on (SSO) for cloud apps.

⚠️ Why it matters: Premium helps reduce password-related help desk tickets, enforce MFA policies, and block suspicious login attempts—all from one place.

4. Information Protection & Data Loss Prevention

With Microsoft Purview (formerly Compliance Center), you can automatically label sensitive data, prevent accidental sharing of confidential info (like Social Security numbers or financial data), and enforce encryption rules.

⚠️ Why it matters: Standard has no way to stop users from accidentally (or intentionally) sharing sensitive data with the wrong people. Premium helps with data compliance.

5. BitLocker Management

If your company uses Windows 10 or 11 Pro, Business Premium lets you manage and enforce disk encryption via Intune. This protects lost or stolen laptops from data theft.

⚠️ Why it matters: Full disk encryption is a must for compliance in healthcare, legal, financial, and other data-sensitive industries.

Cost Comparison

Pricing as of July 2025, based on Microsoft’s listed rates.

So… Which One Should You Choose?

Here’s a quick decision guide:

Choose Business Standard if:

• You’re a small business with limited IT needs
• You already have a 3rd party antivirus or don’t need strict device controls
• You’re looking to keep costs down and just need email, Teams, Office, etc.

Choose Business Premium if:

• You want built-in cybersecurity tools to reduce risk and insurance costs
• You manage multiple remote devices and want to enforce policies
• You’re in a regulated industry (legal, finance, healthcare)
• You want Microsoft’s all-in-one security + productivity platform

Can You Mix and Match Licenses?

Yes. You can assign Business Standard licenses to some users and Business Premium to others. This is a common setup for businesses that want to secure key roles (like executives, finance, HR) with Premium while giving other staff Standard.

Just keep in mind that you need a minimum of Microsoft 365 Business Premium licenses to activate Defender and Intune features for those users.

What About Microsoft 365 E3 or E5?

Those are enterprise-level licenses. If you’re under 300 users, Microsoft 365 Business Premium is the most cost-effective way to get enterprise-grade security without jumping to the much more expensive E3/E5 plans.

Final Thoughts

Choosing between Business Standard and Business Premium comes down to one thing: how much security and control do you want over your IT environment?

If you’re a growing business, handling sensitive data, or looking to reduce your exposure to cyber threats, Business Premium is worth the extra $9.50 per user per month.

It’s like comparing a great toolset (Standard) to a full toolbox with locks, alarms, and inventory tracking (Premium).

Need help migrating or upgrading your plan? Urban IT can help assess your current setup, make sure you’re compliant and secure, and handle everything from licensing to deployment. Reach out to us if you’re not sure where to start.