Microsoft 365 Business Standard vs Premium: Full UK SME Guide (2026)
Quick answer: Microsoft 365 Business Standard costs £9.60/user/month. Business Premium costs £16.90/user/month. The £7.30 difference buys you Microsoft Intune, Defender for Business, Defender for Office 365 Plan 1, Entra ID P1, and data loss prevention — tools that would cost £12+ per user per month if bought separately. For most UK SMEs handling sensitive data, Business Premium is better value.
Pricing correct as of April 2026 (Microsoft UK annual commitment, excluding VAT).
What Is Microsoft Business Standard?
Microsoft Business Standard (officially Microsoft 365 Business Standard) is Microsoft's core productivity licence for SMEs with up to 300 users. At £9.60/user/month on an annual commitment, it is the most popular Microsoft 365 plan for UK small and medium businesses that need the full Office desktop apps alongside business email and Teams.
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Microsoft Business Standard includes:
- Full desktop Office suite — Word, Excel, PowerPoint, Outlook, OneNote, Publisher, Access (Windows); Word, Excel, PowerPoint, Outlook, OneNote (Mac)
- Microsoft Teams — chat, video conferencing, channels, file sharing
- Exchange Online — professional business email with your own domain, 50GB mailbox
- SharePoint Online — document management, team sites, intranet
- OneDrive — 1TB cloud storage per user
- Microsoft Bookings — online appointment scheduling
- Microsoft Forms — surveys and quizzes
- Microsoft Planner — task and project management
- Webinars — host webinars for up to 1,000 attendees
- Standard spam and malware filtering
- Up to 5 devices per user — install Office on PC, Mac, tablet, and phone
What Microsoft Business Standard does NOT include:
- ❌ No Microsoft Intune (no central device management)
- ❌ No Defender for Business (no NextGen endpoint security / EDR)
- ❌ No Defender for Office 365 (only basic spam filtering — no Safe Links or Safe Attachments)
- ❌ No Entra ID P1 (no Conditional Access policies)
- ❌ No data loss prevention or sensitivity labelling
- ❌ No Windows 11 Pro upgrade rights
Microsoft Business Standard helps your team work effectively. But it leaves material security and device management gaps.
All Four Microsoft 365 Business Plans Compared (2026)
Microsoft offers four plans for organisations with up to 300 users:
| Feature | Apps for Business | Business Basic | Business Standard | Business Premium | |---|---|---|---|---| | Price/user/month (annual, ex VAT) | £7.90 | £4.60 | £9.60 | £16.90 | | Desktop Office apps (Word, Excel, Outlook, etc.) | ✅ | ❌ | ✅ | ✅ | | Web & mobile Office apps | ✅ | ✅ | ✅ | ✅ | | Business email (Exchange Online) | ❌ | ✅ | ✅ | ✅ | | Microsoft Teams | ❌ | ✅ | ✅ | ✅ | | SharePoint & OneDrive (1TB) | ✅ | ✅ | ✅ | ✅ | | Microsoft Intune (device management) | ❌ | ❌ | ❌ | ✅ | | Microsoft Defender for Business (EDR) | ❌ | ❌ | ❌ | ✅ | | Defender for Office 365 Plan 1 (email security) | ❌ | ❌ | ❌ | ✅ | | Entra ID P1 (Conditional Access) | ❌ | ❌ | ❌ | ✅ | | Microsoft Purview (DLP & sensitivity labels) | ❌ | ❌ | ❌ | ✅ | | Windows 11 Pro upgrade rights | ❌ | ❌ | ❌ | ✅ |
Microsoft Business Standard vs Premium: Feature-by-Feature
Productivity & Collaboration
Both Microsoft Business Standard and Business Premium include identical productivity features: the full desktop Office suite, Teams, Exchange Online, SharePoint, OneDrive, Bookings, Forms, and Planner. There is no difference here — if all you need is productivity, Standard and Premium are equivalent.
Email Security
Microsoft Business Standard includes basic Exchange Online Protection — this catches standard spam and known malware. It does not include:
- Safe Links (real-time URL scanning)
- Safe Attachments (sandboxing of email attachments)
- Anti-phishing AI (impersonation and spoofing detection)
- Business Email Compromise protection
Microsoft Business Premium adds Defender for Office 365 Plan 1, which provides all of the above. Phishing and business email compromise are the #1 and #2 causes of UK SME cyber incidents. Standard's email filtering misses sophisticated targeted attacks.
Endpoint Security
Microsoft Business Standard has no built-in endpoint security beyond Windows Defender (consumer-grade antivirus). There is no EDR, no central visibility, and no automated threat response.
Microsoft Business Premium includes Microsoft Defender for Business — a full NextGen EDR platform. It uses AI and behavioural analysis to detect novel threats including fileless malware and ransomware. It provides automated investigation, centralised device visibility, and vulnerability management.
Device Management
Microsoft Business Standard has no device management capability. You cannot centrally manage, monitor, or enforce security policies on staff devices.
Microsoft Business Premium includes Microsoft Intune, giving you full MDM and MAM (Mobile Application Management). You can enrol all Windows, Mac, iOS, and Android devices; enforce encryption and patching; deploy apps remotely; wipe lost or stolen devices; and separate work data from personal data on BYOD phones.
Identity & Access
Microsoft Business Standard includes Entra ID Free — basic MFA only, no Conditional Access.
Microsoft Business Premium includes Entra ID P1, enabling Conditional Access policies: block sign-in from risky countries, require MFA on unmanaged devices, enforce compliant device requirements, and block legacy authentication (a major ransomware entry point).
Data Protection
Microsoft Business Standard has no data loss prevention.
Microsoft Business Premium includes Microsoft Purview DLP — policies that prevent sensitive data (card numbers, NI numbers, confidential files) from being emailed or shared externally, plus sensitivity labels that encrypt documents and follow them outside your organisation.
The True Cost: Microsoft Business Standard + Separate Security vs Business Premium
Many UK SMEs on Business Standard separately purchase security tools. Here is what equivalent standalone products cost:
| Component | Monthly cost per user | |---|---| | Microsoft 365 Business Standard | £9.60 | | Microsoft Intune (standalone) | ~£6.00 | | Microsoft Defender for Business (standalone) | ~£2.50 | | Defender for Office 365 Plan 1 (standalone) | ~£1.80 | | Entra ID P1 (standalone) | ~£4.20 | | Total | ~£24.10 | | Microsoft 365 Business Premium | £16.90 | | Saving with Business Premium | ~£7.20/user/month |
For a 20-person business: Business Standard + separate security tools = ~£5,784/year. Business Premium = £4,056/year. Business Premium saves ~£1,728/year and everything is natively integrated — not pieced together from multiple vendors.
Who Should Choose Microsoft Business Standard?
Microsoft Business Standard is the right choice if:
- You already have a mature, separate MDM platform (e.g. JAMF, another enterprise MDM)
- You already have a robust EDR solution from a specialist security vendor
- You are a very small team (1–5 users) with minimal sensitive data and low cyber risk
- You are a sole trader who primarily needs Office apps and email
- Your IT provider has already covered security and device management in your managed IT contract
Sectors where Standard is sometimes sufficient: sole traders, micro businesses with minimal client data, businesses where an MSP's managed security stack already covers these gaps.
Who Should Choose Microsoft Business Premium?
Microsoft Business Premium is the right choice if:
- You have 5+ users and want a complete, integrated Microsoft security stack
- Staff work remotely or hybrid and use personal devices for work
- You handle sensitive client data — financial, legal, medical, HR, or personal data
- You are working toward Cyber Essentials or Cyber Essentials Plus certification
- You want to reduce cyber insurance premiums with documented security controls
- You supply UK government, NHS, or financial services clients (security baseline requirements)
- Your team uses mobile devices for work (Premium enables Intune MAM for BYOD)
- You have had a security incident or been warned about your security posture
Sectors where Premium is strongly recommended: law firms, accountants, financial advisers, healthcare, recruitment agencies, estate agents, management consultancies, any business in a regulated sector.
Microsoft Business Standard and Cyber Essentials
Can you achieve Cyber Essentials with Microsoft Business Standard?
Yes — but it requires additional work. Cyber Essentials requires: boundary firewalls, secure device configuration, access control (including MFA), malware protection, and patch management.
- MFA: Business Standard includes basic MFA but without Entra ID P1, you cannot enforce it via Conditional Access policies — meaning technically savvy users can bypass it.
- Patch management: Without Intune, you cannot centrally verify or enforce patching across all devices.
- Malware protection: Business Standard has no EDR — you would need a separate endpoint security product.
With Business Premium: Intune enforces patching and device compliance. Entra ID Conditional Access enforces MFA with no exceptions. Defender for Business satisfies the malware protection requirement. Business Premium significantly simplifies Cyber Essentials compliance.
For Cyber Essentials Plus (which requires independent technical verification of controls), Business Premium's integrated stack is far easier to evidence and pass.
Real-World Scenarios: Which Plan?
Scenario 1: 12-person accountancy firm, London Handles client financial data. FCA-adjacent. Staff use a mix of office laptops and personal phones for email. → Business Premium. Intune manages both the laptops and separates work data on personal phones. Defender for Business protects against ransomware. Conditional Access enforces MFA. Purview DLP prevents accidental sharing of client financial data.
Scenario 2: 8-person marketing agency, Manchester Produces creative content. No regulated data. Uses Adobe CC. Good existing AV from their MSP. → Business Standard may suffice if the MSP's existing security stack covers EDR and device management. Review annually.
Scenario 3: 25-person law firm, City of London SRA-regulated. Handles highly sensitive legal data. Some staff work from home. → Business Premium essential. SRA guidance specifically addresses cyber security. Conditional Access, Intune, and Defender for Business together satisfy most of the SRA's cyber requirements. DLP prevents accidental privilege waiver via email.
Scenario 4: 3-person startup, first Microsoft 365 subscription → Start with Business Standard to establish collaboration tools. As you grow and take on more clients, upgrade to Premium — the transition is straightforward and Microsoft preserves all data.
How to Switch From Business Standard to Business Premium
Upgrading from Microsoft Business Standard to Business Premium is straightforward:
- Your Microsoft partner or IT provider changes your licence subscription in the admin portal
- All existing data (emails, SharePoint, OneDrive, Teams) is preserved — nothing is lost
- New features (Intune, Defender, Conditional Access) need to be configured — they are not active by default
- Device enrolment into Intune happens in the background, typically completed within 24–48 hours
- Defender for Business begins protecting devices as soon as they are enrolled
Important: Simply purchasing Business Premium licences without configuring the security features provides no additional security. Coreitech handles the complete configuration — Defender deployment, Intune enrolment, Conditional Access policies, and Secure Score optimisation — as part of all managed IT contracts.
Microsoft 365 Business Standard vs Premium: FAQ
What is Microsoft Business Standard? Microsoft Business Standard (Microsoft 365 Business Standard) is a productivity licence for SMEs costing £9.60/user/month. It includes the full desktop Office suite (Word, Excel, PowerPoint, Outlook), Microsoft Teams, Exchange Online business email, SharePoint, and 1TB OneDrive. It does not include device management, advanced endpoint security, or Conditional Access.
What does Microsoft Business Standard include? Microsoft Business Standard includes: full desktop Office apps, Teams, Exchange Online (50GB mailbox), SharePoint, OneDrive (1TB), Bookings, Forms, Planner, and standard spam filtering. Up to 5 devices per user. It does not include Intune, Defender for Business, Defender for Office 365 advanced email security, Entra ID P1 Conditional Access, or data loss prevention.
How much does Microsoft Business Standard cost in the UK? Microsoft 365 Business Standard costs £9.60 per user per month on an annual commitment (April 2026, ex VAT). Month-to-month is slightly higher. Coreitech can procure licences at Microsoft partner pricing and includes licence management in all managed IT contracts.
Is Microsoft Business Standard enough for a small business? For productivity alone — yes. Business Standard gives your team everything they need to communicate, collaborate, and work on documents. But for security and compliance — especially if you handle sensitive data, work remotely, or have Cyber Essentials requirements — Business Standard leaves significant gaps. Most UK SMEs with 10+ users and any sensitive data are better served by Business Premium.
What is the difference between Microsoft Business Standard and Business Premium? Business Premium adds four major capabilities not in Standard: (1) Microsoft Intune for central device management; (2) Microsoft Defender for Business, a full NextGen EDR platform; (3) Defender for Office 365 Plan 1 for advanced email security; (4) Entra ID P1 for Conditional Access. It also adds Microsoft Purview DLP and Windows 11 Pro upgrade rights. The additional cost is £7.30/user/month.
Can I mix Business Standard and Business Premium licences? Yes. You can assign different licences to different users. Some organisations licence administrative or back-office staff on Business Standard and frontline or technical staff on Business Premium. However, security policies (Conditional Access, Intune) generally apply at the tenant level and work best when all users are on Premium.
Does Microsoft Business Standard include Teams? Yes. Microsoft Teams is included in Business Standard. You get unlimited chat, video calls, meetings, channels, and file sharing. Teams Phone (PSTN calling) is available as an add-on.
Does Microsoft Business Standard include Outlook? Yes. Microsoft Business Standard includes the full desktop version of Outlook for both Windows and Mac, plus Exchange Online (50GB mailbox, business email with your own domain). It does not include the advanced email security features (Safe Links, Safe Attachments) — those require Defender for Office 365 Plan 1, which is only in Business Premium.
Summary: Microsoft Business Standard vs Premium
| | Microsoft Business Standard | Microsoft Business Premium | |---|---|---| | Price (UK, annual) | £9.60/user/month | £16.90/user/month | | Desktop Office apps | ✅ | ✅ | | Teams, SharePoint, OneDrive | ✅ | ✅ | | Business email | ✅ | ✅ | | Device management (Intune) | ❌ | ✅ | | Endpoint security (Defender for Business) | ❌ | ✅ | | Advanced email security | ❌ | ✅ | | Conditional Access (Entra ID P1) | ❌ | ✅ | | Data loss prevention | ❌ | ✅ | | Cyber Essentials ready | Partial | ✅ | | Best for | Productivity-first, security covered elsewhere | Complete integrated security + productivity |
Our recommendation for most UK SMEs: Microsoft 365 Business Premium. The £7.30/user/month premium replaces £12+ of standalone security tools, everything is natively integrated, and it significantly reduces your cyber risk. If you need help deciding which plan is right for your business or team, contact Coreitech for a free Microsoft 365 review.
Coreitech is a Microsoft partner providing Microsoft 365 setup, migration, and management for London and UK businesses. Contact us to discuss your Microsoft 365 requirements.