Microsoft 365 Business Standard vs. Premium

If you run a small or medium-sized business, you’re likely using Microsoft 365 Business—or at the very least, thinking about it. It’s one of the most reliable and widely used platforms in the world for business productivity. Whether you’re creating documents, running meetings, managing emails, or storing files in the cloud, Microsoft 365 has a tool for it. But here’s the thing: choosing between Microsoft 365 Business Standard and Business Premium isn’t always straightforward.

You might be asking yourself, “Do I really need the extra features in Premium?” or “Is Standard enough for what we do day-to-day?” These are the right questions to ask, and getting the answer right can save you money, improve security, and boost productivity.

Let’s break it all down so you can make the right decision for your business.

What is Microsoft 365?

Before diving into the comparison, let’s quickly go over what Microsoft 365 actually is. At its core, it’s a cloud-based suite of tools and services designed to help you and your team work efficiently—whether you’re in the office, at home, or on the move.

We’re talking about familiar apps like Word, Excel, PowerPoint, and Outlook, all wrapped up with cloud services like OneDrive and Teams. Microsoft 365 also gives you business-grade email, shared calendars, and tools like SharePoint for document management and collaboration.

But depending on your plan, you’ll get different levels of functionality—especially when it comes to security, device management, and admin control.

Business Standard: The Core Essentials

Microsoft 365 Business Standard is often the first stop for many businesses. It includes all the well-known apps—Word, Excel, PowerPoint, Outlook—as well as Teams for chat and meetings. You’ll also get OneDrive with 1TB of storage per user, SharePoint for collaboration, and Exchange for your business emails.

There are also some great extras in here like Microsoft Bookings, Forms, and Planner—simple tools that help organise meetings, collect feedback, and manage tasks.

Security-wise, you’re not left in the dark. Standard comes with essential protection like spam filters, email encryption, and multi-factor authentication. This is more than enough for most businesses just starting out or those with basic IT needs.

It’s a solid choice if your main focus is day-to-day productivity, without needing advanced security or device management.

Business Premium: Productivity Plus Protection

Now, Business Premium is everything in Standard—and more. You’ll still get the full set of Microsoft apps and services, but Premium layers in more robust security and management tools.

This includes Microsoft Intune and Endpoint Manager, which are powerful tools for managing company devices remotely. So, if your team uses a mix of work and personal devices—or you’ve embraced hybrid working—this becomes especially important.

You’ll also get Azure Active Directory, which is a step up in user management and identity protection. It helps control who can access what and from where, adding another layer of control to your digital environment.

Then there’s data loss prevention (DLP), which lets you set rules to stop sensitive data—like credit card info or client details—from being shared or leaked by mistake. For any business handling personal or confidential information, this is a huge plus.

Premium also gives you advanced threat protection. Think of it as your digital bodyguard—protecting you from phishing, ransomware, and other increasingly sneaky cyber threats.

So, Which One Do You Actually Need?

This is where it really comes down to how your business operates, what your goals are, and how much risk you’re willing—or able—to take. When you’re choosing between Microsoft 365 Business Standard and Premium, it’s really about how much control and security your business needs.

But let’s be honest—cyber security isn’t something any business can afford to take lightly anymore. It doesn’t matter if you’re a 5-person consultancy or a 50-seat eCommerce operation. Cyber criminals aren’t just going after the big guys. In fact, small and medium-sized businesses are often easier targets because they tend to have weaker security and less dedicated IT resources.

If your team’s small, mostly office-based, and using company devices, then Microsoft 365 Business Standard will likely cover what you need. You get email, cloud storage, collaboration tools, and basic security—all the essentials to keep things running smoothly without adding unnecessary complexity.

But once you’ve got remote workers, people using personal devices, or teams accessing data from different locations, things change. That’s when Business Premium becomes the smarter choice. If you’re in a regulated industry like finance, legal, or healthcare—or you handle sensitive data daily—stronger protection isn’t optional, it’s essential.

We’re seeing real-world threats every week. Sophisticated phishing scams. Targeted ransomware. And it’s not just big firms being hit—cybercriminals are going after small and medium-sized businesses too.

Premium gives you secure cloud services, mobile application management, conditional access, and the ability to wipe lost or stolen devices—which is a game changer for keeping business data safe. You still get the core business apps, custom business email, file storage, and web support with both plans, but Premium takes it further with custom permissions and additional apps that help you stay compliant and in control.

With Premium, you get tools like Intune, Endpoint Manager, and Azure AD. These help you manage access, monitor devices, and take fast action when needed. And if you don’t have an in-house IT team, this is where it really pays off. A Managed Service Provider—like us at Labyrinth Technology—can keep everything secure, updated, and supported in the background, so you don’t have to worry.

Let’s Talk About Costs

Naturally, Microsoft 365 Business Premium costs more than Business Standard—but the difference isn’t as steep as you might think. Business Standard comes in at £9.60 per user per month (paid annually), while Premium is £16.90 per user per month (also paid annually). That’s just over £7 more per user, and when you compare that small uplift to the additional layers of protection, management tools, and control you gain, it starts to make real business sense.

Of course, if you’ve got a large team, these numbers add up quickly. And we understand that budgets matter—especially for small and medium-sized businesses. But this isn’t about spending more for the sake of it. It’s about aligning your spend with your actual risk level. If your team handles sensitive data, works remotely, or uses multiple devices, you’ve got more exposure—and Premium is designed to reduce that risk.

Think about what just one data breach could cost you in downtime, lost revenue, or reputational damage. Premium gives you the tools to prevent that scenario—or at the very least, to act fast and minimise the fallout. And that’s not just money well spent, it’s money saved.

So, the key here is to assess your needs properly. Security, flexibility, compliance, how your people work—every factor matters. And if you’re not quite sure which way to go, speak to a trusted Managed Service Provider like us at Labyrinth Technology. We’ll give you honest advice based on your setup, not a sales pitch. Because at the end of the day, the right Microsoft 365 licence should protect your business and help you grow—not just be another line on your invoice.

Our Advice at Labyrinth Technology

At Labyrinth Technology, we work with small and medium-sized businesses across London and beyond. Having supported organisations like yours, we understand the pressures you’re under—tight budgets, limited internal IT support, and the constant need to stay secure while remaining agile.

Not every business needs all the bells and whistles, and we’re not here to push what you don’t need. Our job is to help you make a smart, informed decision—one that fits your business now and grows with you in the future.

That’s why we always take the time to look at your environment. How your team works, what data you’re handling, whether you’ve had previous security issues, and what your future plans look like. From there, we can advise whether Business Standard will support you long term, or if Premium is worth the investment.

No upsell, just good advice.

If you’re still unsure which Microsoft 365 subscription is right for you, we’d be happy to talk it through. Get in touch with our team for a no-pressure chat and see how we can help you get the most out of Microsoft 365.