Unofficial. Independent community helper — not a Microsoft product, not endorsed by Microsoft. Verify licensing with your Microsoft account team. The Microsoft Product Terms are the source of truth.

Identity profile

Small / mid-size business (≤ 300 seats)

Commercial business with no more than 300 seats. Two short questions → exact Business Basic / Standard / Premium recommendation.

Start the assessment for this profile → Compare with other profiles
  • Entry node q_smb_collab
  • Reachable results 4
  • Premium buckets covered 0 / 9
  • Profile tone primary

What this profile is

Commercial business with no more than 300 seats. Two short questions → exact Business Basic / Standard / Premium recommendation.

First question · SMB tier

Does this user need MICROSOFT cloud collaboration services (Exchange Online mailbox, Microsoft Teams, SharePoint Online, OneDrive for Business) — OR do they ONLY need the installed Office apps (Word / Excel / PowerPoint / Outlook) on Windows or Mac?

Microsoft 365 Apps for Business is the SMB-tier apps-only SKU — installed Office on up to 5 devices + 1 TB OneDrive, no Exchange / Teams / SharePoint cloud services. Cheaper than Business Basic / Standard / Premium when the org gets email and chat from a third party (Google Workspace, on-prem Exchange, etc.) or doesn't need them at all.

Recommendations on this path (4)

Every result your decision path can reach is listed below. Click any badge to open the full reference entry with all bullets and Microsoft source citations.

  1. M365 Apps for Business

    Microsoft 365 Apps for Business

    Installed Office desktop apps — Word / Excel / PowerPoint / Outlook on Windows or Mac, plus 1 TB OneDrive. NO Exchange / Teams / SharePoint cloud services.

    License: Microsoft 365 Apps for Business, per user (≤ 300 seat hard cap shared with the other Business SKUs)

    Why this lands here: You picked SMB and said the user does NOT need Microsoft cloud collaboration (Exchange / Teams / SharePoint). M365 Apps for Business is the apps-only Business-tier SKU — cheaper than Business Basic / Standard / Premium when the org gets email and chat from a third party (Google Workspace, on-prem Exchange, etc.) or doesn't need them at all.

    • Installed Office desktop apps (Word / Excel / PowerPoint / Outlook / OneNote on Windows; Word / Excel / PowerPoint / Outlook on Mac) on up to 5 PCs/Macs + 5 tablets + 5 phones per user. Includes Access and Publisher on Windows.
    • Includes 1 TB OneDrive for Business storage. This is the ONE cloud service bundled.
    • Does NOT include Exchange Online (no mailbox), Microsoft Teams, SharePoint Online, Loop, Bookings, Clipchamp, or Stream cloud services. Mail and collaboration must come from a third party (Google Workspace, on-prem Exchange, etc.) or be added as standalone SKUs.
    • Does NOT include Microsoft Defender for Business, Microsoft Intune, Microsoft Entra ID P1, or any of the security / device-management uplifts in Business Premium.
  2. Business Basic

    Microsoft 365 Business Basic

    Web/mobile Office only — Exchange + Teams + SharePoint + OneDrive without installed desktop apps.

    License: Microsoft 365 Business Basic, per user (≤ 300 seat hard cap across all Business SKUs combined)

    Why this lands here: You picked SMB, declined desktop Office apps, and declined Defender for Business + Intune + Entra ID P1. Business Basic is the smallest Business SKU and covers web/mobile Office + Exchange (50 GB) + Teams + SharePoint + OneDrive.

    • Includes Exchange Online (50 GB), Teams, SharePoint, OneDrive, Office for the web. No installed desktop apps.
    • Hard 300-seat cap across all Business SKUs combined — at 301 seats Microsoft requires Enterprise (E) SKUs.
    • Step up to Business Standard when users need installed Word/Excel/PowerPoint/Outlook desktop apps.
    • Step up to Business Premium when you need Defender for Business + Intune + Entra ID P1.
  3. Business Standard

    Microsoft 365 Business Standard

    Business Basic + installed desktop Office apps (Word/Excel/PowerPoint/Outlook on Windows or Mac).

    License: Microsoft 365 Business Standard, per user (≤ 300 seat hard cap across all Business SKUs combined)

    Why this lands here: You picked SMB, need installed desktop Office apps, but don't need Defender for Business + Intune + Entra ID P1. Business Standard adds installed Office to the Basic feature set without bundling security / device management.

    • Business Basic + installed Word, Excel, PowerPoint, Outlook, OneNote (and Access / Publisher on Windows).
    • Includes Microsoft Loop, Microsoft Bookings, and Clipchamp.
    • Hard 300-seat cap across all Business SKUs combined.
    • Step up to Business Premium when you need Defender for Business + Intune + Entra ID P1 — that's the smallest Business tier with serious security.
  4. Business Premium

    Microsoft 365 Business Premium

    Business Standard + Defender for Business + Microsoft Intune + Entra ID P1 + Defender for Office 365 P1 + AIP P1.

    License: Microsoft 365 Business Premium, per user (≤ 300 seat hard cap across all Business SKUs combined)

    Why this lands here: You picked SMB and need Defender for Business + Intune + Entra ID P1. Business Premium is the smallest Business SKU that bundles serious endpoint security, device management, and Conditional Access — and is the right baseline for any SMB serious about security.

    • Includes everything in Business Standard plus Microsoft Defender for Business, Microsoft Intune (MDM/MAM), Microsoft Entra ID P1 (Conditional Access + MFA), Defender for Office 365 P1, and AIP P1.
    • Hard 300-seat cap across all Business SKUs combined.
    • Add Microsoft 365 Copilot per user as needed (or upgrade to M365 Copilot Business).
    • Add Microsoft Defender Suite for Business Premium to layer Entra ID P2 + Defender XDR + Purview Suite features on top.

Microsoft sources behind this profile

Combined citation list from the entry question and every reachable result, deduped by URL (10 links).

Start the Small / mid-size business (≤ 300 seats) assessment → ← Back to all profiles