Microsoft 365 Business Basic vs Standard vs Premium: Which License Do You Need?

by | Apr 11, 2025 | Office 365, Business, Security

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SpireTech understands how vital it is to protect your business and set up an impressive and comprehensive defense. A cybersecurity incident can devastate a business. That’s why we spend so much time crafting our best security recommendations. 

For the most cost-effective way to achieve our top recommendations, we suggest opting for Microsoft Business Premium, which consolidates these features into one comprehensive package. 

Let’s dive into what features of Microsoft 365 security we think are most important to implement.  

Understanding Microsoft Business Premium 

If you aren’t using it already, Business Premium is the best value for money when it comes to Microsoft 365 licensing and meeting our security recommendations. It includes a range of essential features that help protect identities, secure logins, and manage devices. Microsoft Business Premium and above also include the features of Entra ID P1, Intune, and Microsoft Defender. This package of security features provides professional-grade protection and threat response for your business.   

For businesses that might need additional protection, such as those that deal with personal information, they can add Entra ID P2 to their Premium license for additional security. This license adds Microsoft’s Identity Protection functionality which can automatically detect and remediate risks, based on Microsoft’s machine-learning and intelligence. 

Premium Has the Most Bang for Your Buck 

Though our security recommendations can be met with Basic or Standard licenses with the paid add-on of Entra ID P1, choosing Microsoft Business Premium is the most cost-effective way to get the best security features for your business.  

In addition, Microsoft Business Premium includes Entra ID P1 and Microsoft Defender, which improves robust cybersecurity and protects organizations. 

Here are some of the many features included in Microsoft Business Premium: 

Entra ID P1 

Conditional Access Policies: These policies protect all logins, enforce Multi-Factor Authentication (MFA), and provide Geofencing policies to ensure that access is granted based on geographical location 

Single Sign-On (SSO): This feature allows seamless access to other SaaS applications, reducing the need for multiple login credentials 

Advanced Security Logging and Reporting: Comprehensive auditing and reporting capabilities that help monitor and respond to security incidents effectively 

Intune 

Device Management: Cloud-based management to oversee devices within the organization, ensuring that they comply with company policies 

Application Management: Allows administrators to manage applications across all devices, ensuring consistency and security 

Device Policy Deployment and Enforcement: Facilitates the deployment and enforcement of device policies to maintain security standards across all devices 

Microsoft Defender 

Advanced Anti-Spam and Anti-Phishing: Protects against spam and phishing attacks, ensuring that emails are safe and secure 

Safe-Link and Safe-Attachment Scanning: Scans links and attachments for potential threats, providing an added layer of security 

Malware Detection: Detects and mitigates malware threats within the Microsoft environment, keeping systems safe and secure 

What’s Included in Microsoft Business Basic and Standard 

Microsoft Business Basic and Standard plans offer essential tools for productivity and collaboration, but their security features are much more limited compared to Business Premium. 

These two tiers provide only basic security features, such as anti-spam, anti-malware, and anti-phishing for email. They do not include Safe-Link and Safe-Attachment Scanning, nor do they include malware detection capabilities to identify and mitigate threats while within the Microsoft environment. 

Most importantly, Basic and Standard do not include Conditional Access, which is a powerful line of defense for threat actors trying to get into your business environment. It evaluates every login attempt and makes it easy to manage different security policies.  

If you decide that Microsoft Business Basic or Standard is the best fit for your organization, similar levels of security to Microsoft Business Premium can be reached by adding Entra ID P1 for an additional cost. 

Conclusion 

Microsoft Business Premium offers a comprehensive suite of features that enhance security and streamline operations for organizations. Clients will best protect their business against disaster if they follow our Microsoft security recommendations. 

Investing in the right licensing and security features is crucial for protecting your organization and ensuring its smooth functioning. Whether you opt for Business Premium or add-on licenses, our goal is to leverage the available tools to safeguard your digital environment effectively.

FAQs

  1. Q: What’s the difference between M365 Basic and Premium? A: M365 Basic offers core apps and email with minimal security, while premium adds advanced features like Conditional Access, Intune, and Microsoft Defender for 365 for stronger protection.
  2. Q: Which Microsoft 365 license does my business need? A: SpireTech recommends Business Premium for security and compliance. It bundles advanced protections and device management, unlike Basic or Standard, which require add-ons for similar security.
  3. Q: Is Microsoft Business Premium worth the cost? A: Yes, Microsoft Business Premium is worth the cost. It’s cost-effective for businesses needing robust security, MFA enforcement, and email threat protection without buying multiple add-ons.
  4. Q: What security features come with Business Premium? A: Microsoft Business Premium includes Conditional Access, Microsoft Defender for 365, Safe Links/Safe Attachments, and device compliance tools for enterprise-grade security.
  5. Q: Do I need Entra ID P2? A: If your business needs advanced risk-based sign-in analysis and automated identity protection, Entra ID P2 is a good fit for you. Most businesses do well with Entra ID P1 included in Premium.

Not sure which M365 license you need? SpireTech helps Portland businesses choose the right Microsoft 365 plan and optimize their security.