MICROSOFT 365 SMB PLANS LICENSING
Microsoft 365 offers three core business plans, Basic, Standard, and Premium, each designed to meet different organizational needs. Whether you’re a small startup or a growing company, selecting the right plan ensures your team has the tools they need without overspending.
Plan Comparison Overview
 | | ||
Feature/Plan | Business Basic | Business Standard | Business Premium |
Email & Calendar | ✔ Outlook Web & Mobile | ✔ Outlook Desktop Included | ✔ Outlook Desktop Included |
Office Apps (Desktop) | ✘ Web & Mobile Only | ✔ Word, Excel, PowerPoint | ✔ Word, Excel, PowerPoint |
Cloud Storage | 1 TB OneDrive | 1 TB OneDrive | 1 TB OneDrive |
Microsoft Teams | ✔ | ✔ | ✔ |
Device Management | ✘ | ✘ | ✔ Intune & Azure AD |
Advanced Security | ✘ | ✘ | ✔ Defender for Business |
Pricing (2025 NCE Structure)
Monthly billing under annual terms includes a 5% premium. All plans are part of Microsoft’s New Commerce Experience (NCE), which encourages longer-term commitments for cost savings while still offering flexibility if needed. Click here to read more about Microsoft NCE pricing!
Month to Month Commitment
$7.20
per user/month
Annual Commitment
(pay monthly)
$6.30
per user/month
Annual Commitment
(pay upfront)
$6
per user/month
$72
per user/year
Month to Month Commitment
$15
per user/month
Annual Commitment
(pay monthly)
$13.13
per user/month
Annual Commitment
(pay upfront)
$12.50
per user/month
$150
per user/year
Month to Month Commitment
$26.40
per user/month
Annual Commitment
(pay monthly)
$23.10
per user/month
Annual Commitment
(pay upfront)
$22
per user/month
$264
per user/year
Additionally, Microsoft 365 Business plans are available without Microsoft Teams. These plans offer the full productivity power of Microsoft 365 with Word, Excel, PowerPoint, Outlook, and OneDrive, but without the Microsoft Teams collaboration app. Ideal for organizations that already use a different communication platform or have regulatory or policy reasons to exclude Teams, the plans below provide the same security, cloud storage, and productivity tools, ensuring flexibility while maintaining compliance and user preference.
Microsoft 365 Business Basic
(No Teams)
Month to Month Commitment
$5.76
per user/month
Annual Commitment
(pay monthly)
$5.04
per user/month
Annual Commitment
(pay upfront)
$4.80
per user/month
$57.60
per user/year
Microsoft 365 Business Standard
(No Teams)
Month to Month Commitment
$12.36
per user/month
Annual Commitment
(pay monthly)
$10.82
per user/month
Annual Commitment
(pay upfront)
$10.30
per user/month
$123.60
per user/year
Microsoft 365 Business Premium
(No Teams)
Month to Month Commitment
$23.76
per user/month
Annual Commitment
(pay monthly)
$20.79
per user/month
Annual Commitment
(pay upfront)
$19.80
per user/month
$237.60
per user/year
Which Plan Is Right for You?
In general…
- Choose Business Basic if you need essential cloud services like email, Teams, and file storage, but don’t require desktop Office apps.
- Choose Business Standard if your team needs full Office apps and collaboration tools without advanced security or device management.
- Choose Business Premium if you need everything in Standard plus advanced security, device management, and compliance tools.
Work with xMonthly to Choose the Right Plan
Not sure which Microsoft 365 Business plan is right for you? Let xMonthly licensing experts help simplify the decision. We can help you navigate Microsoft Business plan licensing, whether you’re using it for small teams or enterprise-wide processes.
Schedule a free consultation call today and get tailored recommendations that align with your business goals and budget!