Have you ever bought an expensive tool for your business, only to find out it wasn’t what you needed? It’s not just frustrating; it’s a waste of your hard-earned money.
The same goes for picking the right Microsoft 365 plan. Choose the wrong one, and you might end up stuck with tools that don’t fit your needs for an entire year, or worse, you’ll have to buy another plan at an extra cost.
Understanding which license suits your business best is crucial to making the most of your technology. Microsoft 365 plans aren’t one-size-fits-all. Each plan comes with a specific set of software tailored to different team sizes, needs, and budgets.
We know that choosing the right plan can be overwhelming. With so many options and details to consider, it’s easy to get confused.
At Intelligent Technical Solutions (ITS), we’ve helped hundreds of businesses create seamless IT experiences with next-gen software. We’re committed to helping you make smart decisions about your IT needs by sharing our tech knowledge.
In this article, we’ll break down the different types of Microsoft 365 plans and what they include. Hopefully, this guide will help you find the perfect fit for your business.
Microsoft Office 365 Business and Enterprise Plans
Understanding Microsoft 365 Licenses: Business vs. Enterprise
Microsoft 365 licenses come in two main categories: Business and Enterprise. The Business plans are tailored for small to medium-sized businesses (SMBs), while the Enterprise plans are designed to meet the needs of larger companies. Each category offers different levels of service, with unique sets of programs and applications to suit various business requirements.
Microsoft 365 Business Plans
These plans are perfect for SMBs with fewer than 300 users. They are affordable and provide essential office functionality that most small and medium businesses need.
Business Basic As the name suggests, this is the entry-level plan in the Business category. It includes secure cloud storage and online versions of Office applications. It’s ideal for businesses with employees who need simple, remote solutions.
Business Standard This plan is great for businesses that need robust remote work and collaboration tools. It includes Microsoft Teams, secure cloud storage, and business email. One of the best things about Business Standard is that it offers premium Office applications across various devices.
It’s perfect for businesses that want the latest Office products but don’t need the full online experience of Microsoft 365.
Business Premium This is the top-tier plan in the Business category, perfect for businesses that want the full Microsoft 365 experience without overspending. It includes everything in the Business Standard plan, plus advanced cyber threat protection and device management. With Business Premium, you can run the full Microsoft Office Suite on PCs, Macs, and mobile devices, always with the latest software updates.
The Microsoft 365 Business plan includes the full Office 365 suite, cloud programs, and a security system to help get your business up and running smoothly. However, keep in mind that these Business Plans are capped at 300 users.
If your team exceeds 300 users, you might want to look into an Enterprise plan. It offers more storage, advanced threat protection, and supports an unlimited number of users.
Microsoft 365 Enterprise is like the big brother to the Business Plan. It combines both local and cloud-based apps to make collaboration and productivity easier for large corporations.
The Enterprise plan includes fantastic apps and services like Office 365 ProPlus, Office apps, and a full suite of online services for email, among others. It also offers robust security features such as Microsoft Advanced Threat Analytics, Device Guard, Credential Guard, App Locker, and Enterprise Data Protection.
Just like the Business plan, the Enterprise plan comes in three different options:
Office 365 E1: This is the most basic Enterprise plan. It includes web-based apps like Excel and Outlook, integrated with cloud services like OneDrive and Teams, allowing you to stay productive from anywhere.
Office 365 E3
E3 is a step up from E1. It’s a cloud-based suite of productivity apps and services that also offers information protection and compliance features. Unlike E1, this plan lets you install Office applications directly on your PC. It also includes useful apps like Publisher and Access, along with strong security and compliance programs.
Office 365 E5
E5 is the premium plan in the Enterprise category. It includes everything in Office 365 E3, plus advanced security, analytics, and voice computing features.
Small and Medium Businesses (SMBs) and Enterprise Plans
While Enterprise plans are designed for large businesses, small and medium-sized businesses (SMBs) can also benefit from them if they meet their needs. In fact, many smaller companies prefer the Enterprise plan over the Business plan because of features like Active Directory integration, larger storage capacity, and enhanced security and compliance tools. However, be prepared to pay a bit more for these additional perks.
Things to Consider When Choosing Your Plan
Picking the right plan for your team shouldn’t be difficult, but it’s important to be careful to avoid costly mistakes. Here are some key factors to consider:
Cost
Pricing is a major difference between the two plans. While Business and Enterprise plans may look similar, Business Plans are more affordable, ranging from $6 to $22. Enterprise Plans, on the other hand, range from $10 to $38.
If you’re on a tight budget but still want to use the Microsoft Office 365 suite, go for the basic plans. If budget isn’t an issue, consider the premium plans.
Commitment
Business Basic and Business Standard Plans offer month-to-month subscriptions, which is great if you don’t like being tied into a contract. However, this flexibility comes with an extra fee of up to $2 per month. Also, consider any additional costs an MSP might charge for management and support.
Business Premium and Enterprise Plans require an annual commitment, meaning you’ll be locked into at least a one-year contract. Canceling early will result in cancellation fees.
Number of Users
Business plans support up to 300 users, which is sufficient for most small and medium businesses. If your team has 300 or fewer employees, a business plan might be the best fit.
For businesses with more than 300 employees, the Enterprise Plans are a better option as they support unlimited users.
Features
While the same tier of Business and Enterprise plans (e.g., Business Standard vs. Office 365 E3) have similar features, different tiers vary significantly. Basic plans offer fewer Office app accessibility, storage capacity, and security tools compared to standard and premium plans.
Review the features of each Business and Enterprise plan to see what best suits your team. You don’t want to overspend on a premium plan if you’ll only use the basic features.
Threat Protection
Security should be a top priority, whether you’re a small business or a large company. Enterprise plans offer extensive threat protection features like Microsoft Advanced Threat Analytics, Device Guard, Credential Guard, App Locker, and Enterprise Data Protection. Business plans, however, only include Advanced Threat Protection (ATP).
Ready to Choose the Right Microsoft Office 365 Plan for Your Business?
With so many options available, choosing the right Microsoft Office 365 Plan can be challenging. It’s better to take your time reviewing each plan rather than making an impulsive decision and regretting it later.
Business plans are ideal for small and medium companies, offering most Office applications needed by SMBs. While they have limited user capacity and security measures compared to Enterprise plans, their price and commitment terms are more flexible.
Enterprise plans are best for large companies with greater demands. They offer the full suite of Microsoft Office 365 applications and additional security and compliance tools, but come at a higher price and require an annual agreement.
Both Business and Enterprise plans have three tiers, each offering a unique set of applications and programs to meet your needs and budget.
At Interstellar Business Solutions, we help businesses make smart decisions about their IT needs by sharing our knowledge about technology.