Microsoft 365 has three main plans for small and mid-sized businesses: Business Basic, Business Standard and Business Premium. They look similar on paper, but the differences matter for your budget and your security. This guide explains them in plain words.
The short answer
Choose Business Basic if your team only needs business email, Teams and the web and mobile versions of Word, Excel and Outlook. Choose Business Standard if staff need the full desktop Office apps on their computers. Choose Business Premium if you want stronger security, such as sign-in rules by location or device, device management and protection against ransomware. All three plans are for up to 300 users, and you can mix plans in one company.
The three plans at a glance
Business Basic
- Business email on your own domain (Exchange Online)
- Microsoft Teams for chat, calls and meetings
- OneDrive and SharePoint for file storage and sharing
- Web and mobile versions of Word, Excel, PowerPoint and Outlook
- No desktop Office apps
Business Standard
- Everything in Business Basic
- Desktop versions of Word, Excel, PowerPoint and Outlook for Windows and Mac
Business Premium
- Everything in Business Standard
- Microsoft Entra ID P1, which allows Conditional Access (for example, blocking sign-ins from outside approved countries)
- Microsoft Intune to manage and secure laptops and phones
- Microsoft Defender for Business for protection on company computers
2026 prices
Microsoft updated its prices on 1 July 2026. These are the US list prices per user per month, with Teams and an annual commitment:
- Business Basic: 7 US dollars
- Business Standard: 14 US dollars
- Business Premium: 22 US dollars
Business Premium did not change. Basic and Standard went up, and Microsoft added more mailbox storage and new Copilot Chat features to all three plans.
Prices in the UAE and Qatar can differ by currency and by reseller, and existing customers keep their current price until renewal. Always check the price in your own quote. You can estimate your monthly cost with our Microsoft 365 calculator.
Which plan suits which team?
Front-line and office staff who mostly use email
Business Basic is usually enough. Staff can read and write documents in the browser or on their phone, join Teams meetings and use shared files.
Staff who work in documents all day
Finance, sales and project teams often need the desktop apps for large spreadsheets, complex documents and add-ins. Business Standard fits them.
Managers, finance and anyone with access to sensitive data
These accounts are the most attractive to attackers. Business Premium adds the tools that stop a stolen password from being enough to get in, such as location-based sign-in rules and managed devices.
Do you need Business Premium?
Many small businesses start on Basic or Standard and move key users to Premium later. Consider Premium if any of these are true:
- You have had a hacked email account or a fake invoice sent in your name.
- Staff work from personal laptops or phones.
- You handle customer or financial data that must be protected.
- You want to block sign-ins from countries where you do not do business.
You do not have to move everyone. A common approach is Premium for management, finance and admins, and Basic or Standard for everyone else.
Security you should set up on every plan
Whatever plan you choose, these steps are free and important:
- Turn on multi-factor authentication (MFA) for every user. On Basic and Standard, Microsoft's free Security defaults does this.
- Set up SPF, DKIM and DMARC for your domain so others cannot easily fake your email address. See SPF, DKIM and DMARC explained.
- Back up your Microsoft 365 data. Microsoft keeps the service running, but you are responsible for your own data. Read why Microsoft 365 backup matters.
- Remove licences and block sign-in on the day someone leaves.
An example: a 20-person company
Imagine a trading company in Doha with 20 staff:
- 12 sales and warehouse staff who mainly use email, Teams and shared files on their phones and in the browser.
- 5 finance and operations staff who work in large Excel files every day.
- 3 managers who approve payments and see all company data.
A sensible mix would be 12 Business Basic, 5 Business Standard and 3 Business Premium licences. Everyone gets email and Teams, the people who need desktop apps have them, and the most sensitive accounts get the strongest protection. As the company grows, licences can be added or changed at renewal.
Can you change plans later?
Yes. You can add users, upgrade people to a higher plan, or mix plans as your needs change. Downgrades and cancellations depend on your subscription term, so plan big changes for your renewal date. Ask your provider to explain the terms on your quote before you commit.
Is Microsoft Teams included?
Yes, the prices above include Teams. Microsoft also sells versions of each plan without Teams at a lower price, for companies that use another meeting tool. Most SMEs in the region keep Teams, because it is part of how staff chat, meet and share files.
Common mistakes when choosing a plan
- Paying for desktop apps nobody uses. Check who really needs them before buying Standard for everyone.
- Buying Premium but not setting it up. Premium only protects you once its security features are switched on and configured.
- Leaving MFA off. A leaked password plus no MFA is one of the most common causes of hacked business email.
How FortuXpert can help
FortuXpert supplies, sets up and manages Microsoft 365 for businesses in Dubai, Abu Dhabi and Qatar. We help you choose the right mix of plans, migrate your email and switch on the security settings that matter. See our Microsoft 365 and business email service, IT support in Qatar and IT support in the UAE, or book a free IT assessment.