For many businesses, Microsoft 365 is now the backbone of daily work. It runs email, calendars, Teams meetings, file storage, document sharing and collaboration. But the licence you choose matters.

Choose too little, and you may miss key features such as desktop Office apps, device management or enhanced security. Choose too much, and you may end up paying every month for features your team does not use.

At Digital Office Group, we help businesses review, supply, migrate and support Microsoft 365 so they have the right licences, the right security and the right setup for the way they work.

The Main Microsoft 365 Business Licences Explained

Most small and medium-sized businesses will usually be choosing between three core Microsoft 365 business plans:

• Microsoft 365 Business Basic
• Microsoft 365 Business Standard
• Microsoft 365 Business Premium

Microsoft describes Business Basic as including web and mobile versions of apps, business email, cloud storage and Teams. Business Standard adds the desktop versions of Office apps, while Business Premium adds more advanced security and device management capabilities. Microsoft business plans are generally designed for organisations with up to 300 users. Source: Microsoft business plan information. :contentReference[oaicite:0]{index=0}

Licence	Best For	Key Features	Typical Fit
Microsoft 365 Business Basic	Cloud-first users who mainly work online	Email, Teams, OneDrive, SharePoint, web and mobile Office apps	Light users, remote users, shared workstations, basic email users
Microsoft 365 Business Standard	Users who need full desktop Office apps	Everything in Basic plus desktop Word, Excel, Outlook and PowerPoint	Office staff, finance teams, managers, document-heavy users
Microsoft 365 Business Premium	Businesses that need stronger security and device control	Everything in Standard plus advanced security and device management	Businesses handling sensitive data, remote workers, growing SMEs

Microsoft 365 Business Basic: Who Is It For?

Microsoft 365 Business Basic is usually the entry-level option for businesses that need professional email, Teams, cloud storage and web-based Office apps.

It can be a good fit for users who do not need the full desktop versions of Word, Excel, Outlook and PowerPoint installed on their computer.

Business Basic is usually suitable for:

• Staff who mainly use email and Teams
• Remote workers who use browser-based tools
• Basic users who do not need desktop Office apps
• Shared or occasional users
• Small businesses that want a low-cost Microsoft 365 setup

Business Basic may not be enough if:

• You need the desktop version of Outlook
• You regularly work on complex Excel files
• You need offline access to Office apps
• You want stronger security controls
• You need device management for company laptops

Microsoft 365 Business Standard: Who Is It For?

Microsoft 365 Business Standard is often the most common licence for office-based users because it includes the full desktop versions of Office apps.

This is usually the best fit for employees who use Outlook, Word, Excel and PowerPoint every day.

Business Standard is usually suitable for:

• Office administrators
• Finance teams
• Sales teams
• Managers and directors
• Users who work heavily with Word and Excel

Business Standard may not be enough if:

• You need advanced cyber security
• You want to manage company laptops centrally
• You need stronger identity and access controls
• You have remote workers using business devices
• You want to reduce risk from lost or stolen laptops

Microsoft 365 Business Premium: Who Is It For?

Microsoft 365 Business Premium is the stronger option for businesses that want productivity tools plus better security and device control.

Microsoft explains that Business Premium includes the familiar Microsoft 365 apps and adds enterprise-grade technology designed for businesses with fewer than 300 users. :contentReference[oaicite:1]{index=1}

For many growing businesses, Business Premium is worth considering because security is no longer just an enterprise concern. Small businesses are regularly targeted by phishing, account compromise and ransomware attacks.

Business Premium is usually suitable for:

• Businesses with sensitive customer data
• Companies with remote or hybrid workers
• Businesses using company laptops
• Teams that want stronger Microsoft 365 security
• Organisations working towards Cyber Essentials
• Companies that need better control over devices and user access

Business Premium is often recommended when you need:

• Better protection against phishing and malware
• Device management for laptops and mobiles
• Conditional access policies
• Stronger identity protection
• Remote wipe for lost or stolen devices
• Improved cyber security posture

Which Microsoft 365 Licence Should I Choose?

The right answer depends on how your staff work. Many businesses do not need every user on the same licence. In fact, a mixed licence setup is often the most cost-effective approach.

Business Scenario	Recommended Licence	Reason
Basic email and Teams only	Business Basic	Keeps costs down for users who do not need desktop apps.
Normal office user	Business Standard	Includes desktop Office apps for daily work.
Director or senior manager	Business Premium	Better security for users with sensitive access.
Remote worker with company laptop	Business Premium	Device management and stronger access controls are useful.
Finance or HR user	Business Premium	These users often handle sensitive personal or financial data.
Occasional user	Business Basic	Suitable for light use where desktop apps are not needed.

Microsoft 365 Licence Recommendations by Business Size

Common Microsoft 365 Licensing Mistakes

Many businesses are paying for licences they do not need, while also missing important protection. Here are some of the most common issues we see.

1. Giving every user the same licence

Not every employee uses Microsoft 365 in the same way. Some users need desktop apps. Some only need email. Others need stronger security. A mixed licence model can often reduce unnecessary spend.

2. Using Business Standard when Business Premium would be safer

Business Standard is a strong productivity licence, but it does not provide the same security and device management benefits as Business Premium. For directors, finance users and remote workers, this can be an important gap.

3. Forgetting about Microsoft 365 backup

Microsoft 365 includes availability and retention features, but many businesses still choose third-party Microsoft 365 backup to protect against accidental deletion, malicious deletion and long-term recovery issues.

4. Paying for old or unused licences

Businesses often continue paying for ex-employees, duplicate accounts, unused add-ons or licences that are no longer suitable.

5. Not reviewing security settings

Microsoft 365 is powerful, but it needs to be configured correctly. Multi-factor authentication, conditional access, email security, admin permissions and sharing policies should all be reviewed.

Do I Need Microsoft 365 Backup?

This is one of the most important questions businesses ask. Microsoft 365 stores your emails, files and Teams data, but that does not always mean your business has the level of backup and recovery it expects.

A Microsoft 365 backup solution can help protect against:

• Accidental deletion
• Malicious deletion
• Former employee issues
• Retention policy gaps
• Ransomware-related file changes
• Long-term recovery needs

If your business relies heavily on Outlook, SharePoint, OneDrive or Teams, then Microsoft 365 backup should be seriously considered.

You can learn more about our Microsoft 365 services here: Microsoft 365 Support from Digital Office Group.

Do I Need Business Premium for Cyber Security?

Not every business needs every advanced feature from day one, but Business Premium can be a sensible choice for businesses that want to improve security without buying lots of separate tools.

It can be especially useful if your business has:

• Remote workers
• Company laptops
• Finance, HR or customer data
• Compliance requirements
• Cyber insurance requirements
• A desire to work towards Cyber Essentials

For many SMEs, the question is not simply “which is cheapest?” The better question is: “which licence gives our business the right balance of cost, productivity and protection?”

Should Every User Have Business Premium?

Not always. Some businesses benefit from every user having Business Premium, especially where all staff work remotely, use company-managed devices or handle sensitive information.

However, many businesses use a blended model:

• Business Basic for light users
• Business Standard for everyday office users
• Business Premium for directors, finance, HR, managers and remote workers

This can help control monthly costs while still improving security where it matters most.

How Digital Office Group Can Help

Digital Office Group supports businesses with Microsoft 365 licensing, setup, migration, security and ongoing support.

We can help with:

• Microsoft 365 licence reviews
• Microsoft 365 migrations
• Email setup and migration
• SharePoint and OneDrive configuration
• Microsoft Teams setup
• Microsoft 365 backup
• Multi-factor authentication
• Security reviews
• User onboarding and leaver processes
• Ongoing managed IT support

As a long-established office technology provider, Digital Office Group can also support the wider technology stack around Microsoft 365, including managed IT services, connectivity, telecoms and managed print.

FAQ: Which Microsoft 365 Licence Do I Need?

Final Recommendation

If you only need email and browser-based apps, Microsoft 365 Business Basic may be enough.

If your users need the full desktop Office apps, Microsoft 365 Business Standard is usually the better fit.

If your business wants stronger cyber security, device management and better control over company data, Microsoft 365 Business Premium is often the licence to consider.

The best setup is often a carefully planned mix of licences, rather than putting every user on the same plan.