for your business?

Choosing the right Microsoft 365 licensing plan can feel like an impossible task. With a confusing sea of acronyms, features, and pricing tiers, it’s easy to get overwhelmed. But making the right choice is one of the most critical technology decisions your business will make — one that directly impacts your budget, your team’s productivity, and your company’s security.

Don’t worry. This guide breaks down the key Microsoft 365 business plans and offers a clear, easy-to-follow framework to help you choose the ideal solution for your needs. That way, you can confidently invest in a tool that supports and drives your growth.

The first question: Are you a “business” or an “enterprise”?

Before diving into features, begin with a simple yet essential question that will narrow down your options: How many users do you have?

Microsoft splits its offerings into two main families:

• Microsoft 365 Business plans are designed for small businesses and mid-sized organizations with under 300 users.
• Microsoft 365 Enterprise plans are for organizations with over 300 users, or smaller companies that require the most advanced security and compliance capabilities.

The Business plans are like an SUV — powerful, versatile, and perfect for most drivers. The Enterprise plans, meanwhile, are like an armored truck — built for maximum scale, security, and specialized, heavy-duty work.

If you have (or soon expect to have) more than 300 employees, you can jump ahead to the Enterprise section. If not, the Microsoft 365 Business plans are the perfect place to start.

A breakdown of the core M365 Business plans (< 300 users)

These three Business plans cover the needs of nearly every small to mid-sized business (SMB), from lean startups to established companies.

Microsoft 365 Business Basic

Who it’s for	Startups, field-based teams, and any business that operates primarily in the cloud and needs essential collaboration tools
The key difference	With Business Basic, you get access to the web and mobile versions of Office 365 apps, such as Word, Excel, and PowerPoint, but no installable desktop apps. You also enjoy powerful apps and services, including Microsoft Teams, secure business-class email, and 1 TB of cloud storage per user.
The bottom line	This plan is the essential, cloud-first toolkit for communication and collaboration, accessible from anywhere, on any device.

Microsoft 365 Business Standard

Who it’s for	The majority of SMBs that need the full power and familiarity of desktop versions of the Office suite
The key difference	You get everything in Business Basic, plus full, installable desktop apps for PC and Mac — including Word, Excel, PowerPoint, Outlook, and Microsoft Access (PC only) — allowing your team to work offline seamlessly. The plan also comes with tools such as Microsoft Bookings to help customers schedule appointments.
The bottom line	This plan offers the complete, classic Office suite supercharged with cloud collaboration tools. It’s the go-to Microsoft 365 Business subscription for maximum productivity.

Microsoft 365 Business Premium

Who it’s for	Security-conscious businesses, companies in regulated industries (e.g., healthcare, finance), or any organization that wants a proactive defense against modern cyberthreats
The key difference	You get all the features of Business Standard, plus a powerful suite of enhanced security features. The plan adds Microsoft Defender for endpoint protection, advanced threat defense, and Microsoft Intune for device management, giving you greater control over how company data is accessed and used on personal and company devices.
The bottom line	This plan is your business-in-a-box, complete with a built-in security operations center that protects your sensitive information from phishing, malware, and data loss for true peace of mind.

A breakdown of the core M365 Enterprise plans (300+ users)

For larger organizations, the focus shifts to advanced security, comprehensive compliance, and comprehensive analytics. The Enterprise plans are better built to manage such complexity across a larger, growing workforce.

Microsoft 365 E3

Who it’s for	Large or regulated organizations that need robust security and legal compliance tools to protect company data and manage legal risks
The key difference	E3 builds on the Microsoft 365 apps with more advanced information protection and compliance capabilities. It includes tools for legal hold, data loss prevention, and stronger encryption, all of which are basic Microsoft Purview features.
The bottom line	This plan represents the corporate security and compliance standard, providing the tools you need to protect your assets and confidently meet regulatory requirements.

Microsoft 365 E5

Who it’s for	Organizations with the most stringent security and compliance needs, or those wanting to leverage advanced business analytics (Power BI) and voice capabilities (Microsoft Teams)
The key difference	E5 is the top tier. It includes everything in E3, plus Microsoft’s most advanced security suite (including Microsoft Defender for Cloud), analytics, and telephony.
The big warning	This is the most powerful — and most expensive — plan. Overspending on E5 is the most common mistake we see companies make. Industry data shows that nearly half of all premium licenses are underutilized, meaning companies are paying top dollar for features their teams never touch. You can often achieve your goals more cost-effectively by licensing E3 for most users and purchasing specific features, such as Microsoft Copilot, as add-ons.

Choosing is hard, but governing is harder

You now have a clearer picture of the difference between Microsoft 365 plans. But here’s the hard truth: selecting a Microsoft 365 plan is just the first step.

No matter which plan you choose, you still face the ongoing risks of:

• Paying for “ghost licenses,” or licenses that are not being used, resulting in wasted funds
• Paying for third-party tools when the functionality exists within your Microsoft 365 subscription
• Facing six-figure penalties for being out of compliance

The goal isn’t just to buy the right licenses; it’s to govern them. True governance turns your Microsoft 365 licensing from a frustrating cost center into a strategic asset through continuous optimization, security monitoring, and alignment with your business goals. It ensures you make informed decisions every single day.

Get expert guidance for your Microsoft investment

Soteria integrates license management directly into our core services. Here’s how we help solve your biggest licensing challenges:

• Managed IT and IT Procurement Services to analyze your actual usage and ensure you only buy the licenses you need, eliminating overspend from day one
• Managed IT Service Desk solutions that make it easy to streamline your employee life cycle (e.g., instantly reclaiming and reassigning licenses during offboarding to stop financial waste from ghost accounts)
• Managed Cybersecurity to view your licensing through a security-first lens, helping you meet compliance mandates and prepare for software audits

Let us handle the complexity of Microsoft 365 so you can focus on what matters most: your business. Contact Soteria today to learn how our integrated approach can transform your Microsoft 365 investment.