How to choose the right Microsoft 365 for Business package
Microsoft’s business packages are aimed in particular at small and medium-sized enterprises (SMEs). The Microsoft business packages are called Business Basic, Apps for Business, Business Standard and Business Premium. Included in all four business packages are Word, Excel, PowerPoint and OneDrive applications.
All information in this article is correct as of January 2026.
Microsoft business packages vs Office home packages
The difference between Office packages for individuals and those for SMBs is what you get with them. For the the private sector, Microsoft offers packages that include the usual programs such as Word, Excel and PowerPoint. For companies, the packages include additional or business-optimised services that simplify collaborative work processes.
Microsoft 365 small business packages offer you familiar and trusted Microsoft applications as an online app or installable component. Microsoft also grants you access to useful tools and programs that primarily help you to develop, manage and advance collaborative projects as well as facilitate internal and external communication.
- Up to 50 GB Exchange email account
- Outlook Web App and collaboration tools
- Expert support & setup service
What are the 4 Microsoft business packages?
Microsoft 365 is available for small and medium-sized businesses in four different packages for up to 300 people:
- Microsoft 365 Business Basic
- Microsoft 365 Apps for Business
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
All of the small business solutions require you to sign up for a subscription, and you can choose between the slightly more expensive monthly subscription and an annual subscription. You pay for the former on a monthly basis, and you can cancel it at any time without incurring any additional costs. On the other hand, early cancellation of the annual subscription, which can be paid both monthly and annually, usually results in additional costs. You will not receive a refund for payments already made for annual subscriptions.
For companies with more than 300 employees, special solutions such as Microsoft 365 Apps for Enterprise are available. As an additional option, Exchange Online Plan 1 offers a professional email server solution with full Outlook support.
Microsoft 365 Business Basic
The essentials in a nutshell
Among Microsoft business packages, Business Basic is the ideal office suite for any company whose employees travel extensively or work from home but need access to project files and emails at all times. The package provides your company’s data with a secure storage platform and your employees with access to the most important Office applications via their browser. In addition, communication features such as shared inboxes, web conferences or team websites facilitate project collaboration.
Costs: £4.60 (per user per month) with an annual subscription or £5.52 (per user per month) with a monthly subscription.
Business Basic in detail
Business Basic is the most affordable model for small and medium-sized businesses. It gives you access to the online versions of Word, Excel, PowerPoint and OneNote via any standard web browser.
All employees can work on files from the above programs in real time at any time and from anywhere as long as they have internet access. Files created with the online programs are compatible with the latest versions of the desktop applications, so you can send your own documents or open and edit external documents.
However, the focus of the Business Basic package is to help you and your company communicate and collaborate. To that end, the package includes useful online services, which is where Exchange really stands out. Protected from viruses, spam and phishing attacks, the email system provides a central hosting platform for your company’s entire email traffic. Access messages at any time from any device via the Outlook Web app.
In addition, all users receive 1 TB of cloud storage and can send attachments of up to 150 MB. If you also purchase an installable Outlook version, you can retrieve your mails as usual via the client application interface. You can set up shared inboxes and calendars too.
The other services of Microsoft 365 Business Basic at a glance:
Microsoft Teams
With the communication and video conferencing software Microsoft Teams, you have access to a platform designed specifically for team collaboration. Through text, voice, and video chat, you can efficiently communicate with colleagues and external partners. Thanks to its seamless integration with Outlook, you can schedule your online meetings in advance. If needed, you can generate custom invitation links that can be sent via email or added to your calendar. Up to 300 people can participate in video conferences, and features like screen sharing, breakout rooms, and live captions make collaboration even more productive.
OneDrive for Business
Microsoft’s cloud storage OneDrive is the perfect solution to store and manage your company’s data. Create custom directory structures and specify which people can view, create or edit files. All files are available online, can be accessed from anywhere and with any device, and are always up to date thanks to synchronisation. In Business Basic, 1 TB of storage space is available per person.
SharePoint
In addition to the Google Drive alternative OneDrive, you can use the SharePoint application. Create team websites, which – simply put – are folders where you can store files of a specific project. All users involved can access the team documents and share files, info, etc. with each other.
Microsoft 365 Apps for Business
The essentials in a nutshell
Microsoft 365 Apps for Business is the right choice if you’re happy with the digital information and work structure within your company but are looking for a feature-rich and versatile office suite. Unlike the other Business packages, this Microsoft Business package does not include SharePoint and only comes with OneDrive and Outlook. The package also assumes you already run an email server and rely on your own communications software, as Exchange is also not available. In return, however, you get access to the desktop versions of the Office apps, including Premium features.
Costs: £8.10 (per user per month) with an annual subscription or £9.72 (per user per month) with a monthly subscription.
Apps for Business in detail
Microsoft 365 Apps for Business also allows you to use the online applications of Word, OneNote, PowerPoint and Excel via a browser or mobile app (iOS and Android). Users can install the suite on up to five Windows or macOS devices, as well as five mobile devices and five tablets, for a maximum of fifteen devices.
Since Apps for Business has a link to the OneDrive cloud, it is possible to share and collaborate on all files in real time. If you have been working offline, the cloud service will synchronise your documents as soon as you have an internet connection again. Microsoft also provides 1 TB of OneDrive storage per person in this business package.
Unlike the Business Basic package, Microsoft Teams and SharePoint team sites are not included. So, when it comes to project and corporate communications, it’s a matter of setting up alternative solutions. The Exchange mail hosting environment is also not included in Microsoft 365 Apps for Business. You therefore need your own mail server solution for email communication and archiving.
Microsoft 365 Business Standard
The essentials in a nutshell
Microsoft’s Business Standard package is the right choice for users who want to use the Apps for Business features, but also need email hosting in the form of the Exchange application. Business Standard offers you the usual Office programs like Word, Excel and PowerPoint, but also scores points with practical tools such as Teams and SharePoint, which optimise collaboration.
Costs: £9.60 (per user per month) with an annual subscription or £11.52 (per user per month) with a monthly subscription.
Business Standard in detail
With the Microsoft 365 Business Standard package, you get all the apps and services from Business Basic, such as Word, Excel, PowerPoint, Outlook and OneDrive. Just as with Apps for Business, the desktop versions of the apps are available here, including premium features.
You also get access to more than ten helpful apps for business needs with the Business Standard package, including Clipchamp and Microsoft Loop. Clipchamp is a user-friendly online video editor that lets you create, edit, and share professional videos quickly and without prior experience, while Microsoft Loop allows you to co-edit and structure content in real time and integrate it directly into other Microsoft applications.
You can also enhance your teamwork in Business Standard with the Teams application, which in this package also allows you to hold online meetings with up to 300 participants. Unlike Business Basic and Apps for Business, the Business Standard version gives you the option of holding webinars, which users can register for.
Finally, benefit from email hosting thanks to Microsoft’s cloud solution Exchange. The application gives you access to an inbox with 50 GB of storage and a personal calendar for professional scheduling.
Microsoft 365 Business Premium
The essentials in a nutshell
With the Microsoft 365 Business Premium package, you acquire the all-in-one solution for your company’s everyday office life, which not only presents a cross-company email solution (including calendar and 50 GB of storage per person), but also offers more security as well as protection against ransomware and other cyber threats.
Costs: £16.90 (per user per month) with an annual subscription or £20.28 (per user per month) with a monthly subscription
Business Premium in detail
Microsoft 365 Business Premium includes all the features of Business Standard. This means that the package includes both the latest Microsoft Office products (online and desktop version) and access to the powerful communication platforms Exchange and Teams.
Business Premium offers you all the tools you need as a modern small business for structuring and collaborating on projects in one place. You are not dependent on additional hardware or software to operate an email server or a file server. Your email hosting mailbox includes 50 GB, just like in the other packages.
Another advantage that sets Business Premium apart from the other Microsoft 365 Business packages is its security features. With various protective measures such as Defender, app protection, and Information Rights Management, your company’s devices and data are secured. In addition, in the most expensive package for small businesses, your business data is stored within the EU.
You can purchase the Copilot add-on for all Microsoft 365 Business solutions mentioned here. This add-on enhances familiar Office applications like Word, Excel, Outlook, and Teams with powerful AI features. Microsoft’s generative AI helps users work more efficiently by automatically creating summaries, drafting content, suggesting emails, or simplifying data analysis in Excel. Copilot accesses information from your own Microsoft 365 data, such as your calendar, emails, and documents.
Microsoft 365 Business solutions from IONOS
If you’re interested in one of the presented Microsoft 365 Business packages, you can also purchase a corresponding subscription directly from IONOS. In addition to the standard Microsoft features, you’ll have access to optional setup services that guide you step by step through the installation and configuration of the applications.
To protect your data in the best possible way, IONOS offers you spam filtering and virus protection in addition to backups in certified data centres. In case of problems or questions about software, subscription or similar issues, support is available around the clock.
A great pro of these office solutions is that they combine IONOS hosting products with powerful Microsoft applications. Still, you only need to contact a single point of contact — whether it’s about billing, technical support, or logging in to the Control Center.
Cost: £7.00 (per user per month)
If you would like to purchase Microsoft 365 for Business or another Office offering, you can find more relevant information about subscriptions and licensing models on our detail pages: