What Microsoft 365 licence does my business need?
Most UK small businesses should start by splitting users into three groups: people who only need email, Teams and browser apps; people who need the desktop Office apps; and people handling devices, sensitive data or higher security risk. Microsoft 365 Business Basic covers email, Teams, web and mobile Office apps, and 1 TB of cloud storage per user for up to 300 users.[1]
Business Standard adds the desktop versions of Word, Excel, PowerPoint, Outlook and other apps, again with business email, Teams and 1 TB of storage per user.[2]
Business Premium adds stronger identity controls, advanced device management, Microsoft Defender for Office 365, and data loss prevention features.[3]
It also includes Microsoft Defender for Business, which Microsoft describes as device protection for organisations with up to 300 users.[6]
That means the answer is rarely "put everyone on the same licence". A five-person office might need three Standard licences for staff who work in Excel all day, one Basic licence for a shared admin role, and one Premium licence for the director whose account can approve payments, access HR files and reset passwords.
The quick version
Choose Business Basic when the user works mainly in a browser, needs company email, joins Teams meetings and stores files in OneDrive or SharePoint. It is usually a good fit for frontline users, volunteers, occasional staff and people using shared machines, as long as they do not need the installed desktop Office apps.[1]
Choose Business Standard when the user needs the full desktop Office apps on their computer. This is the normal choice for finance teams, managers, project staff and anyone who lives in Excel, Outlook or Word during the day.[2]
Choose Business Premium when the account or device carries more risk. Microsoft lists Premium as including policy based identity and access management, advanced device management, cyber threat protection for business, Microsoft Defender for Business, Microsoft Defender for Office 365 and data loss prevention.[3] In plain English: use it for directors, finance, HR, admin users, laptop-heavy staff, and anyone working with confidential client data.
Why the cheapest licence is not always cheaper
A cheap licence is fine when it matches the job. It gets expensive when it quietly creates workarounds: staff emailing files to personal accounts, saving documents locally because SharePoint is not set up properly, or reusing weak passwords because nobody has turned on the basics.
The NCSC's Small Business Guide tells businesses to use strong and separate passwords, turn on 2-step verification, back up important data, keep devices updated and protect against malware.[4] Microsoft 365 can support a lot of that, but only if the tenant is configured properly. The licence gets you the capability; the setup decides whether it actually protects the business.
Cloud is not magic either. The NCSC's cloud security principles say customers should understand how their cloud service protects data, authenticates users, separates tenants and handles operational security.[5] For Microsoft 365, that translates into practical questions: who can access company data, what happens if a laptop is lost, can you remove company files from a departing employee's phone, and can you see risky sign-ins before they become a problem?
A simple way to map licences
Start with the job role, not the price list.
If someone only needs email, Teams, OneDrive and web versions of the Office apps, Basic may be enough. If they create documents all day and need local Office apps, Standard is normally the better fit. If they handle sensitive data, manage money, use a company laptop outside the office, or have admin privileges, look seriously at Premium.
Then check the device picture. Bring your own device setups can be convenient, but they also blur the line between company data and personal kit. Premium's device management and security features matter more when staff use laptops at home, phones on the road or devices that may be lost, stolen or shared.[3]
Finally, check whether you already pay for separate security tools. If you are buying endpoint protection, email threat protection and device management elsewhere, Business Premium may consolidate some of that spend. Microsoft describes Defender for Business as device protection for organisations with up to 300 users, and Business Premium includes it.[6]
Mistakes we see when Microsoft 365 has grown organically
The most common mistake is having too many global admins. Admin accounts should be treated differently because they can change the tenant, reset users and access sensitive areas. Those accounts need stronger controls than a normal mailbox.
The second mistake is mixing personal habits with business data. OneDrive and SharePoint are useful, but they need a sensible folder structure, permissions and retention thinking. Otherwise the business ends up with a mess that looks modern but behaves like the old shared drive everyone hated.
The third mistake is buying licences once and never reviewing them. Roles change, people leave, new tools arrive, and the licence mix gets stale. A short review every few months is usually enough to catch wasted spend and security gaps.
When to speak to BMT
Speak to us before a migration, before renewing a large batch of licences, or when you are not sure whether Business Premium is worth it. We can review the tenant, map licences to real job roles, remove waste, tighten security and make sure Microsoft 365 is set up for how your team actually works.
If you are based around Rochdale, Greater Manchester or the North West, BMT can also help with the bits that sit around Microsoft 365: device setup, backups, Wi-Fi, VoIP, cyber security and day-to-day IT support. The licence is only one part of the system. The boring configuration work is what stops it turning into an expensive address book.
Sources
[1] https://www.microsoft.com/en-gb/microsoft-365/business/microsoft-365-business-basic — Microsoft 365 Business Basic
[2] https://www.microsoft.com/en-gb/microsoft-365/business/microsoft-365-business-standard — Microsoft 365 Business Standard
[3] https://www.microsoft.com/en-gb/microsoft-365/business/microsoft-365-business-premium — Microsoft 365 Business Premium
[4] https://www.ncsc.gov.uk/collection/small-business-guide — NCSC Small Business Guide
[5] https://www.ncsc.gov.uk/collection/cloud/the-cloud-security-principles — NCSC Cloud Security Principles
[6] https://learn.microsoft.com/en-us/microsoft-365/security/defender-business/mdb-overview?view=o365-worldwide — Microsoft Defender for Business overview