Introduction
Choosing the right Microsoft 365 license can be confusing. The names are similar, but the features differ significantly. This guide explains the differences between Business Basic, Business Standard, and Apps for Business to help you choose the right option for you and your team.

The choice generally comes down to two main questions:

• Do you need the full desktop software (Word, Excel, Outlook) installed on your computer?
• Do you need Microsoft to provide your professional email service?

1. Microsoft Business Basic

Overview: The entry-level, cloud-based option.

This plan provides professional email (Exchange), Microsoft Teams, and SharePoint for file storage.

What is SharePoint? SharePoint functions as your company’s central shared drive in the cloud. While OneDrive is used for private individual files, SharePoint is designed for shared team resources—such as company policies, project folders, and templates.

Key Limitation: It does not include the desktop versions of the Office software. You cannot install Word, Excel, or Outlook on your computer. Instead, you must use the web-browser versions (similar to using a personal email in a web browser).

• Best for: Staff who primarily check emails and view documents online (e.g., frontline workers or field staff).
• Not recommended for: Office staff who rely on heavy document editing or need to work offline.

2. Microsoft 365 Apps for Business

Overview: The software package without email.

This plan provides the full desktop versions of Word, Excel, PowerPoint, and Outlook. You can install these on your PC or Mac and work offline.

Key Limitation: It does not include email hosting, Microsoft Teams, or SharePoint. It is strictly for the software applications and personal OneDrive storage.

• Best for: Individuals who need the installed software tools but don't need team collaboration features. It is also suitable for businesses that are contractually locked into a third-party email provider.
• Not recommended for: Teams that need to collaborate. Because this plan lacks SharePoint and Teams, staff cannot easily share files, co-author documents, or chat within the same ecosystem.

3. Microsoft Business Standard

Overview: The comprehensive choice for most businesses.

This is the standard recommendation for office-based employees. It combines the features of the previous two plans: you get professional email, SharePoint, and Teams hosting, plus the full desktop software installed on your machine.

Configuration Option: This package is available in two versions: Business Standard (with Teams) and Business Standard (without Teams). 

This ensures you can open quotes, edit spreadsheets, and check your calendar even when internet connectivity is unavailable.

• Best for: Teams requiring full collaboration. This package is ideal for companies where staff need to work together on shared documents using SharePoint and communicate via Teams, while still having the power of desktop applications for individual work.
• Not recommended for: Staff with very limited needs (e.g., a van driver who only needs email on a phone).

Summary: Which plan is right for you?

Choose Business Basic if: You need a cost-effective solution for staff who only need email access and basic document viewing on mobile devices or via a web browser.

Choose Apps for Business if: You have a specific requirement to keep your email with a different provider (legacy hosting), but your staff need the latest versions of Word and Excel installed on their computers.

Choose Business Standard if: You need a complete solution. This is the most reliable option for general business use, ensuring your team has professional email, shared files (SharePoint), collaboration tools (Teams), and full offline access to their applications.