The quick answer
If you're a small business with staff handling client data, using company devices, or working remotely — you need Business Premium. Business Basic gives you email and cloud storage, which is a start, but it leaves significant security gaps that most businesses can't afford to ignore.
That said, there are situations where Basic is the right choice. Let's break it all down.
What's included — side by side
- Web & mobile Office apps only
- Exchange Online (email)
- Teams
- SharePoint & OneDrive
- 1TB storage per user
- Everything in Basic
- Full desktop Office apps
- Microsoft Intune
- Defender for Business
- Conditional Access
- Entra ID Premium P1
- Azure Information Protection
- Defender for Office 365
The detailed comparison
| Feature | Basic (~£5/user) | Premium (~£22/user) |
|---|---|---|
| Professional email (Exchange Online) | ✓ | ✓ |
| Microsoft Teams | ✓ | ✓ |
| SharePoint & OneDrive (1TB) | ✓ | ✓ |
| Web & mobile Office apps | ✓ | ✓ |
| Desktop Office apps (Word, Excel, PowerPoint) | ✗ | ✓ |
| Microsoft Intune (device management) | ✗ | ✓ |
| Microsoft Defender for Business | ✗ | ✓ |
| Conditional Access policies | ✗ | ✓ |
| Entra ID Premium P1 | ✗ | ✓ |
| Azure Information Protection | ✗ | ✓ |
| Defender for Office 365 (anti-phishing) | ✗ | ✓ |
| Windows Autopilot | ✗ | ✓ |
| Microsoft Copilot compatible | ✗ | ✓ |
What do those Premium features actually mean?
Microsoft Intune — Device Management
Intune lets you manage every device that accesses your business data. You can enforce security policies, deploy apps, wipe devices remotely if they're lost or stolen, and ensure every device meets your security standards before it can access company data. Without Intune, you have no control over what happens on company devices — or personal devices accessing your email.
Microsoft Defender for Business
Defender for Business is enterprise-grade endpoint protection included in Business Premium. It monitors every device for threats, detects and responds to attacks, and provides a security dashboard showing the health of your entire device estate. It's significantly more capable than basic antivirus and is specifically designed for businesses with up to 300 users.
Conditional Access
Conditional Access lets you set rules about who can access your Microsoft 365 environment, from where, and on which devices. For example: block access from outside the UK, require MFA on all sign-ins, or block access from devices that aren't Intune-enrolled. This is one of the most powerful security tools available and it's only in Business Premium.
Entra ID Premium P1
This enables advanced identity features including Self Service Password Reset, risk-based sign-in policies, and group-based access management. It's the foundation for Zero Trust security in Microsoft 365.
Who should be on Business Basic?
Who needs Business Premium?
Is the price difference worth it?
For a 10-user business, the difference between Basic and Premium is approximately £170/month. That's £2,040/year.
Consider what you get for that:
- A complete device management platform (Intune) — comparable standalone products cost £8–15/device/month
- Enterprise endpoint security (Defender for Business) — comparable standalone antivirus/EDR costs £5–10/device/month
- Advanced email security (Defender for Office 365) — comparable standalone products cost £3–6/user/month
- Identity protection (Entra ID P1) — approximately £4–6/user/month standalone
- Full desktop Office applications — Office 365 apps alone cost approximately £8/user/month
Add those up for 10 users and you're looking at £280–450/month in equivalent standalone products. Business Premium at £22/user gives you all of that — integrated, managed from a single console.
Not sure which licence is right for you?
Book a free Microsoft 365 Health Check. We'll review your current setup, tell you exactly what you have, and give you an honest recommendation — no obligation.
Book Your Free Health Check →Key takeaways
- Business Basic gives you email, cloud storage, and web-based Office apps — nothing else
- Business Premium adds Intune, Defender, Conditional Access, desktop apps, and much more
- For any business with staff, client data, or remote workers — Business Premium is the right choice
- When you factor in equivalent standalone security tools, Premium often works out cheaper than Basic
- Business Premium is required for Microsoft Copilot deployment
About SRX IT Solutions
We are a Microsoft 365 and Copilot AI specialist based in Birmingham. We help SMEs get the right licences, properly configured — not just switched on. Learn more →