Microsoft 365 is the productivity backbone for most businesses. Email, Office apps, file storage, collaboration—it’s hard to avoid. But Microsoft’s pricing and plan structure can be confusing.

Here’s a clear breakdown of what small businesses actually need.

Understanding the options

Microsoft 365 Business Basic ($6/user/month)

Includes:

  • Web and mobile versions of Office apps (Word, Excel, PowerPoint, Outlook)
  • Business email with custom domain
  • 1TB OneDrive cloud storage per user
  • Microsoft Teams for chat and video meetings
  • SharePoint for team collaboration

Best for: Businesses that primarily work in browsers and don’t need desktop Office apps. Budget-conscious organizations where users mainly use web-based tools.

Limitations: No desktop Office apps. Users must use web or mobile versions.

Microsoft 365 Business Standard ($12.50/user/month)

Includes everything in Basic, plus:

  • Full desktop Office apps (Word, Excel, PowerPoint, Outlook, Access, Publisher on Windows)
  • Bookings for scheduling appointments
  • Additional business applications

Best for: Most small businesses. This is the sweet spot for organizations that need real Office apps with full functionality.

Microsoft 365 Business Premium ($22/user/month)

Includes everything in Standard, plus:

  • Microsoft Intune (device management)
  • Azure Information Protection (document security)
  • Advanced threat protection for email
  • Azure AD Premium (advanced identity features)
  • Windows Autopilot (zero-touch device deployment)

Best for: Businesses that need device management, advanced security, or have compliance requirements. Highly recommended if you have remote workers or BYOD policies.

My recommendation: Business Premium is increasingly the right choice for most businesses. The security and management features are valuable, and they’re much cheaper bundled than purchased separately.

Microsoft 365 Apps for Business ($8.25/user/month)

Includes:

  • Desktop Office apps only
  • 1TB OneDrive storage

Does NOT include: Business email, Teams, SharePoint

Best for: Unusual situations where you need Office apps but have email elsewhere (rare).

What about Enterprise plans?

Enterprise E3 and E5 plans exist but are usually overkill for small businesses. They’re priced higher and include features most small organizations don’t need.

If you have more than 300 users, you might be forced into Enterprise plans, but most small businesses should stick with Business-tier options.

Common questions

Do I need Office apps on every computer?

Probably yes. Web versions work for basic editing, but power users—especially those working with Excel—will find web versions limiting. Budget for desktop apps.

Is Outlook web as good as desktop Outlook?

It’s gotten much better and works well for most users. Desktop Outlook still has more features for power users and works offline. Most people are fine with web Outlook.

Do I need Business Premium for security?

You can have good security without Premium, but it makes things much easier. The advanced threat protection and device management in Premium address real risks that small businesses face.

What about Google Workspace instead?

It’s a legitimate alternative. Google Workspace is generally simpler but less powerful for complex documents and spreadsheets. If your team is already comfortable with Google Docs and doesn’t need advanced Excel features, it’s worth considering.

Setting up Microsoft 365 properly

Getting value from Microsoft 365 requires proper setup:

Email configuration

  • Custom domain setup (you@yourcompany.com)
  • SPF, DKIM, DMARC for email authentication
  • Anti-spam and anti-malware settings
  • Mobile device access policies
  • Email signature standardization

File storage

  • OneDrive for personal files
  • SharePoint for team files
  • Clear structure and permissions
  • External sharing policies
  • Backup consideration (Microsoft doesn’t back up your data)

Security settings

  • Multi-factor authentication (mandatory)
  • Conditional access policies
  • Data loss prevention
  • Security defaults enabled

Teams setup

  • Team structure aligned with organization
  • Channel organization
  • Guest access policies
  • Meeting defaults

Migration considerations

Moving from existing email (GoDaddy, Gmail, on-premises Exchange) to Microsoft 365 requires planning:

  • Mailbox migration (preserving existing email)
  • Calendar migration
  • Contact migration
  • User training on new systems
  • DNS record changes
  • Coexistence period management

Poor migration execution causes significant disruption. This is worth getting right.

Microsoft 365 help

If you’re setting up Microsoft 365, migrating from another system, or want to optimize your existing setup, reach out. I help Colorado Springs and Denver businesses implement Microsoft 365 properly—initial setup, migration, and ongoing optimization.

The right plan, properly configured, is foundational to modern business operations.