Microsoft 365 Business Basic vs Business Standard
Published: 15/12/2025 Category: Microsoft 365
Trying to choose between Microsoft 365 Business Basic and Business Standard? Here's what the two plans offer and how to determine which may be more appropriate for your business.
Choosing the Right Microsoft 365 Plan
Microsoft 365 provides businesses with a collection of productivity, communication and cloud services.
However, choosing the right subscription can be confusing when several plans offer similar features.
Two common options for small businesses are Microsoft 365 Business Basic and Business Standard.
The main difference is that Business Standard includes the desktop versions of the core Microsoft 365 applications, while Business Basic focuses on the web and mobile versions. Microsoft currently lists both plans as including business email, Teams and 1 TB of OneDrive storage per user.
1. Microsoft 365 Business Basic
Business Basic is designed for businesses that primarily use Microsoft 365 through web and mobile applications.
It includes services such as:
• Business email with a custom domain
• Outlook
• Word for the web
• Excel for the web
• PowerPoint for the web
• OneDrive
• Microsoft Teams
Microsoft currently lists 1 TB of OneDrive storage per user and a 50 GB mailbox with Business Basic.
For businesses that don't require installed desktop Office applications, Business Basic can provide a practical solution.
2. Microsoft 365 Business Standard
Business Standard includes the features of Business Basic while also providing desktop versions of core Office applications.
This includes applications such as:
• Word
• Excel
• PowerPoint
• Outlook
• OneNote
The desktop applications can be installed on supported computers, making Standard more appropriate for users who regularly work with the full desktop versions of Microsoft Office.
3. Which One Is Right for Your Staff?
The answer depends on how each employee works.
Someone who primarily uses a browser and needs email, Teams and online document access may be well suited to Business Basic.
Someone who regularly works in desktop Word, Excel, PowerPoint or Outlook may benefit from Business Standard.
Businesses don't necessarily need to give every employee the exact same licensing approach, depending on their requirements.
4. What About Email?
Both Business Basic and Business Standard support business email using a custom domain.
This allows employees to use professional addresses such as:
Microsoft currently lists a 50 GB mailbox with both plans.
Setting up the domain, DNS records, users and email configuration correctly is an important part of deploying Microsoft 365.
5. What About OneDrive and Teams?
Both plans include OneDrive storage and Microsoft Teams functionality.
This means businesses can use Microsoft 365 for file storage, collaboration, communication and online meetings.
The important distinction isn't simply whether these services are included, but how your employees need to use Microsoft 365 day to day.
6. Don't Choose Based on Price Alone
The cheapest licence isn't necessarily the most appropriate.
Choosing the wrong plan can mean employees don't have the applications or functionality they need.
Conversely, paying for desktop applications that a user never needs may result in unnecessary expenditure.
A review of how your staff actually work can help determine which licences are appropriate.
Common Microsoft 365 Licensing Mistakes
• Giving every user the same licence without assessing their needs
• Paying for desktop applications that aren't required
• Assuming Business Basic includes desktop Office applications
• Not configuring a custom business domain correctly
• Failing to secure Microsoft 365 accounts with MFA
• Treating Microsoft 365 configuration as a set-and-forget task
Final Thoughts
Microsoft 365 Business Basic and Business Standard are both capable business productivity solutions, but they are designed for slightly different requirements.
Business Basic is well suited to organisations that primarily use web and mobile applications, while Business Standard adds the desktop Office applications.
The right choice ultimately depends on how your employees work and what your business needs.
Westgate Technology can help businesses assess their Microsoft 365 requirements, configure their environment, set up users and domains, and provide ongoing support.
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