Office 365 is now Microsoft 365. For most small and midsize businesses, Microsoft 365 Business Standard or Premium is the right fit, while companies over 300 users or with strict compliance needs should move to the Enterprise E3 or E5 tiers.
TL;DR Office 365 is now Microsoft 365. Small and midsize businesses usually do best on Business Standard or Business Premium, which top out at 300 users. Once you pass that cap or need advanced compliance, you move to the Enterprise tiers, where Microsoft 365 E3 covers most companies and E5 adds full security, analytics, and voice. Pricing runs from about $6 to $99 per user each month.
Microsoft rebranded Office 365 to Microsoft 365 in 2020, and the lineup has changed a lot since. From Word and Outlook to SharePoint, Teams, and built-in security, the platform now covers far more than a productivity suite. Every business needs something different, so before you move to the cloud, map your real requirements and then use the breakdown below to pick the right license.
Business or Enterprise?
Microsoft 365 splits into Business and Enterprise families. Business plans (Basic, Standard, and Premium) are built for organizations up to 300 users and bundle the Office apps, Teams, and security at a lower cost. Enterprise plans (the E tiers) remove the user cap and add advanced compliance, analytics, and governance for larger or regulated companies.
If you’re running a cloud-first business, that’s your first real decision. Both families give you the Office apps, Teams, and OneDrive, so the split comes down to size, security depth, and how much you want Microsoft to handle natively. Here’s how the current plans and list pricing line up.
| Plan | Best for | Price (per user/mo, annual) |
|---|---|---|
| Microsoft 365 Business Basic | Web-first teams up to 300 users | about $6 |
| Microsoft 365 Business Standard | Small businesses needing full desktop apps | about $12.50 |
| Microsoft 365 Business Premium | SMBs handling sensitive data who want security built in | about $22 |
| Office 365 E3 | Larger teams wanting the apps without the full security suite | about $23 |
| Microsoft 365 E3 | Midsize and enterprise teams needing security and compliance | about $36 |
| Microsoft 365 E5 | Full Microsoft security, analytics, and voice stack | about $57 |
| Microsoft 365 E7 | Largest orgs wanting AI agents and deep governance | about $99 |
Prices reflect Microsoft list pricing on an annual commitment as of June 2026, drawn from Microsoft’s Business plan comparison and Enterprise plan pages. Worth knowing, Microsoft has a price increase landing July 1, 2026 that nudges several tiers up, so locking in an annual term before then can save money.
Every Business plan includes 1 TB of OneDrive storage per user, custom business email, and Teams. Business Standard adds the full desktop apps, and Business Premium layers on advanced security and device management for teams that handle sensitive data. The Enterprise tiers add larger mailboxes and archiving, enterprise search in SharePoint, Power BI analytics, and the deeper compliance controls regulated industries need.
Here’s a quick way to choose.
- Business Standard if you’re a small team that mainly needs Office apps, email, and Teams.
- Business Premium if you handle sensitive client data and want security built in rather than bolted on.
- Microsoft 365 E3 if you’re past 300 users or need advanced compliance and device management.
- Microsoft 365 E5 if you want Microsoft’s full security, analytics, and voice stack instead of third-party tools.
- Office 365 E1 or E3 if you want the apps and collaboration without paying for the full security suite.
E1, E3, or E5?
If you go the Enterprise route, you still pick a tier, and each one builds on the last. The naming gets confusing because there are separate families now. Office 365 E1, E3, and E5 cover apps and collaboration, while Microsoft 365 E3, E5, and the newer E7 wrap those apps in Microsoft’s full security and device management.
E1 covers the basics. You get the web and mobile Office apps, Outlook, SharePoint team sites, Teams, and video conferencing, but not the installed desktop apps. It suits frontline or task workers who live in a browser.
E3 includes everything in E1, adds the full desktop apps, and brings data loss prevention, rights management, and encryption for security and compliance. According to Microsoft’s Office 365 E3 page, it’s the workhorse plan for midsize and growing companies.
E5 is the full enterprise-grade tier. It carries everything in E3 plus advanced threat protection, Power BI analytics, audio conferencing, and Microsoft’s unified communication and identity tools. If you’d rather run a fully managed Microsoft security stack than bolt on third-party tools, E5 is the way to go. E7 sits above it for the largest organizations that want AI agents and deep governance.
Plenty of small and midsize enterprises land on E3 and add a few third-party apps for VoIP or extra security. The right answer depends on how much you want Microsoft to handle natively versus assembling your own stack with managed IT support.
Migrating to Microsoft 365 is a big step, and the wrong license can mean overpaying or missing features you actually need. If you’re still undecided, the team at Uprite can assess your environment and match you to the right plan. As a cloud service provider, we don’t just resell licenses, we right-size them to your budget and goals.
Common Questions About Choosing a Plan
Is Office 365 the same as Microsoft 365?
Yes, in most cases. Microsoft renamed its Office 365 Business plans to Microsoft 365 back in 2020 and expanded what they include. The standalone Office 365 E1, E3, and E5 enterprise plans still exist alongside the newer Microsoft 365 E3, E5, and E7 tiers.
Which Microsoft 365 plan is best for a small business?
Business Standard fits most small businesses that need the full desktop apps, email, and Teams. Step up to Business Premium when you handle sensitive client data and want security, device management, and threat protection built in instead of bought separately.
When should a business move to Enterprise E3 or E5?
Move to Enterprise once you approach the 300-user cap or your compliance needs outgrow the Business plans. E3 covers most regulated midsize companies. Pick E5 when you want Microsoft’s full security, analytics, and voice stack built in.
How much does Microsoft 365 cost per user?
As of June 2026, Business Basic is about $6 per user each month, Standard about $12.50, and Premium about $22 on an annual term. Enterprise tiers run from about $23 for Office 365 E3 up to $99 for Microsoft 365 E7.
Can you mix Microsoft 365 plans across a team?
Absolutely. Plenty of organizations give Business Basic or Office 365 E1 to frontline staff and reserve Premium or E5 for leadership and IT. Mixing licenses keeps you from overpaying for people who don’t need every feature.
Ready to pick the right Microsoft 365 plan?
Stop guessing at licenses and overpaying for features you’ll never use. Talk to Uprite and we’ll map your team to the right Microsoft 365 plan, handle the migration, and manage it going forward. Get a free Microsoft 365 assessment or call (866) 570-3065.
