Microsoft 365 Standard vs Premium: Best Fit for UK Business

15 October 2025

Microsoft 365 Standard vs. Premium: Finding the Best Fit for Your Company

Having trouble choosing the right Microsoft 365 service for your business? Businesses have to weigh cost versus functionality when choosing Microsoft 365 Business Standard or Premium. The standard edition includes Word, Excel & Teams, while Premium includes advanced security and device management. The differences are explained to help you match cost, functionality and security to your needs. Whether you're a small business proprietor or even an IT professional, knowing these plans will enable you to boost security and productivity. Find out which Microsoft 365 service fits your business best.

What’s Included in Microsoft 365 Business Standard vs Premium?

Microsoft 365 is a cloud collaboration and productivity suite. Both Business Standard and Premium plans provide core tools but differ in their scope. So here's what each plan covers:

Microsoft 365 Business Standard

This plan is for businesses that just need basic productivity tools without advanced security options. It includes:

Core Office Apps: Word, Excel, PowerPoint and Outlook for creating/managing documents, presentations and spreadsheets.
Collaboration Tools: Chat & project collaboration for virtual meetings/chat with Microsoft Teams.
Cloud Storage: OneDrive for 1 TB per user - secure file storage and sharing.
Email and Calendar: Exchange & Outlook with custom domains for professional email/scheduling.
Additional Apps: Planning & Forms, Clipchamp and Bookings for task management & customer engagement.
Basic Security: Spam filtering & encryption plus two-factor authentication for user accounts.
Admin Tools: Basic admin center for users/settings.

Business Standard fits businesses that focus on productivity & collaboration without demanding complex security requirements.

Microsoft 365 Business Premium

Premium includes Standard plus advanced security & management features for businesses with higher compliance/security requirements. Additional features include:

Advanced Security: Microsoft Defender for Business provides enterprise-class endpoint protection against ransomware and sophisticated threats.
Device Management: Microsoft Intune allows device management for employees.
Data Protection: Data loss prevention policies protect critical information for regulated industries.
Identity Management: Azure Active Directory Premium P1 supports Conditional Access as well as Multi-Factor Authentication (MFA) for greater user security.
Compliance Tools: Features to satisfy regulatory requirements or to lessen a risk in particular industries (For example finance or health care).

The Premium edition is for businesses that need robust security and scalable device management alongside productivity tools.

Key Differences Between Microsoft 365 Business Standard and Premium

Microsoft 365 Business Standard & Premium plans include core productivity tools, but differ greatly in cost, security and management. Table below compares two plans in key areas and concludes with a brief explanation to help you decide on a decision. Partnering with managed IT support services can further simplify implementation and optimise your chosen plan.

Feature	Business Standard	Business Premium
Cost	£9.60 per user/month. Affordable for basic needs. A one-month free trial is available.	£16.90 per user/month for advanced features. A one-month free trial is available.
Security Features	Basic protections: Spam filtering, encryption and two-factor authentication.	Advanced security: For enterprise-grade protection, use Microsoft Defender for Business & Data Loss Prevention (DLP) policies.
Device Management	No device management. Limited control over employee devices.	Microsoft Intune. Central device management for remote/hybrid work.
Compliance & Identity	Minimal compliance tools, suitable for basic regulatory needs.	Azure Active Directory P1 for Zero Trust & compliance in regulated industries.
Copilot Integration	Supports Copilot (paid add-on) with basic controls.	Enhanced Copilot deployment with security & management tools.

Small businesses on a tight budget will appreciate Standard's essential tools at a lower price. But Premium's advanced features justify the cost to organisations concerned about security and scalability. Managed IT support services offered by providers such as Renaissance can help you determine and implement the best business plan.

Are There Other Microsoft 365 Licensing Options?

Beyond Standard and Premium, Microsoft offers other plans for businesses with fewer than 300 users:

Microsoft 365 Business Basic (£4.60 per user per month): Includes cloud-based tools like email, Teams, and online Office apps. Lacks desktop apps, making it suitable for fully cloud-based businesses.
Microsoft 365 Apps for Business (£8.10 per user per month): Provides desktop versions of Office apps without cloud services. Ideal for businesses needing offline tools but not email or collaboration features.

For bigger organisations (more than 300 users), there are more advanced features available but more expensive enterprise plans, such as Microsoft 365 E3 and E5. Renaissance can customise IT support packages to help your business with these options.

Why Renaissance for Your Microsoft 365 Journey?

At Renaissance Computer Services, we've been helping businesses grow using technology for more than 28 years. This guide compares Microsoft 365 Business Standard versus Premium on everything from cost to security. Standard suits businesses that simply want low-cost productivity tools, while Premium gives you more serious security and management for when compliance or scalability is a concern. Choose the right Microsoft 365 service - we can help.

Renowned IT consultancy in London, Renaissance provides bespoke IT support packages and Microsoft 365 services. Our team implements the right plan with you, keeping integration, downtime, and security in mind. Contact us to see how we can improve your Microsoft 365 experience and support your business growth.