Microsoft 365 is a bundle of several plans, and many businesses choose based on whatever the salesperson offered them. The difference between the plans is mainly in security and device management. We are a Microsoft Partner in Israel and manage licensing for our clients.
What each plan actually gives you
Before talking about money, it is worth knowing what you actually get. Business Basic gives you Exchange mail, Teams, SharePoint and OneDrive, with the Office apps in the browser and on mobile only. Business Standard adds the Office apps installed on the computer, plus webinars and meeting scheduling tools. Business Premium takes Standard and adds a layer of security and management: Intune for device management, advanced Entra ID capabilities such as conditional access, and Defender for mail and endpoints. The Enterprise plans are meant for organizations that have passed the 300-user ceiling of Business, or that need more detailed compliance and policy tools.
Pay special attention to security. That's where it's hardest to see what's missing, and where businesses make the wrong choice.
| Plan | What you get | Who it is for |
|---|---|---|
| Business Basic | Email, Teams, SharePoint, OneDrive and Office in the browser | A small team that works in the cloud and does not need Office installed |
| Business Standard | Everything in Basic, plus Office installed on the computer | A business that works with heavy files and locally installed Office |
| Business Premium | Everything in Standard, plus Intune, conditional access and Defender | A business of up to 300 employees that wants control and security |
| Enterprise E3 | Enterprise licensing, archiving and broad compliance policies | An organization with over 300 employees or compliance requirements |
| Enterprise E5 | Everything in E3, plus protection, identity management and analytics | An organization that needs advanced security and threat investigation |
The difference between a license and a mailbox
A license is assigned to a person and gives them access to services. A mailbox is an address, and some mailbox types don't need a license at all.
- User license. For every employee who signs in, reads mail and uses apps.
- Shared mailbox. An address for a team, such as inquiries or billing, with no personal login and no license.
- Alias. An extra address that lands in the same existing mailbox, at no cost.
- Resource mailbox. A meeting room or equipment booked straight from the calendar.
The effect on the bill is direct. A company with 22 employees needs 22 licenses, and shared mailboxes cost nothing. When we take on a new account to manage, the first thing we do is count the licenses against the employee list.
What you pay for and never use
Almost every account we get into has licenses and add-ons that are paid for and not used. Usually someone bought a large bundle at a discount, and nobody looked at it again a year later.
- A plan with installed Office, for employees who only work in the browser.
- An Enterprise license at a 40-person company that needed Business Premium.
- Teams phone service that nobody connected to your numbers or set up.
- A data analytics tool included in the big bundle that nobody ever opened.
- OneDrive sitting unused, because all the files still live on a local server.
- Licenses still active for employees who left six months ago.
The check itself is simple. For each license, you look at whether the user actually signed in during the last thirty days, and from there you decide what to cut and what to swap for a better-fitting plan.
Why Business Premium is usually the answer
For a small or medium business that holds sensitive information, Premium is usually the right choice. It gives you control over your employees' devices and identities.
- Device management. Intune enforces encryption, screen lock and up-to-date versions, and remotely wipes a lost phone.
- Conditional access.
Conditional AccessBlocks sign-ins from unapproved devices or locations, and requires two-step verification for everyone. - Email and endpoint protection. Defender checks links and attachments before an employee clicks them.
- Data classification. Documents can be marked internal so they cannot be forwarded outside the company.
The simple way to decide is to ask who touches the data. If you have accounting, payroll, contracts or customer details in mailboxes and files, you need the management layer. If the team only works with public information, you can get by with less and add Premium only for those who need it.
Choose the plan that covers your devices, your employees' identities and your email.
What Microsoft doesn't back up for you
Microsoft is responsible for the infrastructure and for service availability. It is not responsible for accidental deletions on your side. A deleted item can be restored for a limited time, and after that it is gone. Even a retention policy will not return a folder to the state it was in on a specific date.
That's why we separately back up email, SharePoint, OneDrive and Teams files, with long-term retention. You can restore a mailbox or an entire folder to the way it was on a given day: when an employee deleted something by mistake, when an employee who left deleted files or when ransomware encrypted synced files.
- Email, calendars and contacts for every mailbox, including shared mailboxes.
- SharePoint libraries and all personal OneDrive folders.
- Teams files and channel conversations, which actually live in SharePoint.
- A test restore once a quarter, to make sure the backup works.
The recycle bin keeps items for a short time and won't help you restore a folder deleted three months ago.
Migrating from another email provider
Businesses come to us from Gmail, from an on-premises Exchange server or from a hosting provider's email. Here is how the migration works with us, step by step.
- We map every mailbox, alias, distribution list and resource mailbox that exists today.
- We set up the new environment and verify the domain, without changing mail routing yet.
- Run a pilot on two or three mailboxes and check that everything arrived in full.
- We sync all mailboxes in the background, including folders, contacts and calendars.
- We switch the mail records at a quiet time, usually over the weekend.
- We keep the previous provider active for a few more weeks, just to be safe.
- We update the computers and phones and make sure signatures, scanners and printers are back in action.
Mail routing is switched only after the sync is complete and tested. We are available throughout the migration and check that every message reaches the new mailbox.
Licenses when an employee joins and when one leaves
Licenses need updating every time someone starts or leaves. Without a clear procedure, licenses get added for new employees and nobody remembers to remove the ones for people who left.
- New employee: create the user, assign a license based on the role and add them to the right groups.
- An employee who leaves: sign-in is blocked on their last day.
- Convert their mailbox to a shared mailbox to preserve the history, then remove the license.
- Transfer their files to the new owner before deleting the account.
- Once a quarter, review every license and compare it against the actual employee list.
AtIT management dashboard See every employee's licenses and mailboxes on one screen, so the quarterly review is quick.
FAQ
What is the difference between Business Standard and Business Premium?
Standard gives you the Office apps on your computer and the cloud services. Premium adds device management with Intune, conditional access and email and endpoint protection with Defender. If you hold sensitive data or have employees working from home, you will need Premium.
How much does a license cost per employee?
The price depends on the plan, the number of licenses and the type of commitment, and Microsoft updates it from time to time. That's why we don't publish a number on the site. As a Microsoft Partner in Israel we have direct access to licensing and support, and we'll check the current price when we prepare your quote.
Do you need an external backup for Microsoft 365?
Yes. Microsoft is responsible for service availability. Deleted items can be restored for a limited time only, and after that they're gone. We add a separate backup for email, files and Teams content.
Can you mix different plans in the same company?
Yes, and it is common. Office staff get Business Premium, and employees who only use email get a lighter plan. Anyone who handles sensitive data needs Premium.
How long does a migration from Gmail take?
Mapping and preparation take a few days, and the sync itself runs in the background depending on mailbox volume. We switch mail routing during a quiet hour, and employees usually only notice their software being reconfigured. We guide every step during the migration.
More on this topic: Managed IT services · IT management dashboard · Licensing and software · IT and security assessment