Microsoft 365 Business Premium: Is It Worth It?
Business Basic, Business Standard, and Business Premium look similar on a features page until you dig into what each one actually enables around identity, device management, and threat protection. This guide compares the tiers on capability rather than price, since Microsoft changes CAD pricing periodically and its own pricing page is the only reliable current source.
Microsoft 365 Business Premium adds device management through Intune, identity protection through Entra ID P1, and advanced email and endpoint threat protection through Defender for Office 365 and Defender for Business on top of everything in Business Standard. It is worth it for any business handling sensitive client, financial, or health data, subject to cyber insurance requirements, or managing devices it does not fully control. It is often unnecessary for a very small team using only basic email and document tools with no compliance pressure.
What each tier includes
Microsoft 365 Business Basic
Business Basic covers web and mobile versions of Outlook, Word, Excel, and PowerPoint, plus Exchange Online, SharePoint, OneDrive, and Teams. It does not include the desktop installs of the Office apps.
Microsoft 365 Business Standard
Business Standard adds the fully installed desktop versions of Word, Excel, PowerPoint, and Outlook on up to five devices per user, along with Teams Premium-style meeting features and Microsoft Bookings.
Microsoft 365 Business Premium
Business Premium includes everything in Standard, then layers on device management through Intune, identity protection through Entra ID P1, and threat protection through Defender for Office 365 Plan 1 and Defender for Business. This is the tier we recommend as the security baseline for most small Ontario businesses, a position also outlined in our Microsoft 365 security best practices guide.
What the added Premium capabilities actually do
Microsoft Entra ID P1
Entra ID P1 (formerly Azure AD Premium P1) unlocks Conditional Access, the policy engine that lets you require MFA, block risky sign-ins, and enforce compliant devices for access to company data. Without it you get MFA as an on/off switch with far less nuance.
Microsoft Intune
Intune is the device management platform covered in detail in why modern businesses need endpoint management. It enforces encryption, patch levels, and remote wipe across company and personal devices.
Defender for Office 365 Plan 1
This adds Safe Links and Safe Attachments, which rewrite URLs and sandbox attachments at the moment someone clicks, plus tunable anti-phishing and impersonation protection well beyond the default spam filter.
Defender for Business
Defender for Business extends endpoint detection and response to Windows, Mac, and mobile devices, giving you the kind of threat visibility usually reserved for enterprise security tools, described further under endpoint detection and response.
Azure Information Protection
Included sensitivity labelling lets you classify and encrypt documents containing financial, health, or client data so that protection travels with the file even if it leaves your tenant.
Feature comparison
| Capability | Business Basic | Business Standard | Business Premium |
|---|---|---|---|
| Web and mobile Office apps | Included | Included | Included |
| Desktop Office apps | Not included | Included | Included |
| Exchange Online, SharePoint, OneDrive, Teams | Included | Included | Included |
| Conditional Access (Entra ID P1) | Not included | Not included | Included |
| Device management (Intune) | Not included | Not included | Included |
| Defender for Office 365 (Safe Links/Attachments) | Not included | Not included | Included |
| Defender for Business (endpoint EDR) | Not included | Not included | Included |
| Sensitivity labels (Azure Information Protection) | Basic | Basic | Full |
| Recommended for compliance-sensitive businesses | No | No | Yes |
Not sure which Microsoft 365 tier fits your team?
We review your current licensing against your actual security and compliance needs and recommend a mix that avoids over-buying or under-protecting.
Get a Licensing ReviewWho Business Premium is right for
- Businesses handling client financial, health, or legal data, including law firms, accounting firms, and healthcare practices
- Businesses required to demonstrate security controls for cyber insurance renewal
- Teams with a mix of company-owned and personal devices accessing email
- Any business that has previously dealt with a phishing incident or account compromise
Who it is not right for
- A one or two-person operation with no compliance obligations and no sensitive client data
- Businesses that have already deployed equivalent third-party device management and EDR tools and do not want to run two overlapping systems
- Seasonal or very short-term staff who need only basic email access, where a lighter licence may fit better
Making the decision
Licence tier should follow risk, not headcount. A five-person accounting practice handling client tax data has more reason to run Business Premium tenant-wide than a fifteen-person landscaping company with no sensitive data on file. Mixed licensing, where administrative and finance staff run Premium while field staff run Basic, is a common and reasonable middle ground.
For current CAD pricing, always check Microsoft's official Microsoft 365 pricing page directly, since published rates and currency conversions change periodically.
Sources and further reading
Frequently asked questions
Is Microsoft 365 Business Premium enough security on its own?
It provides the licensing foundation, but it still needs to be configured correctly, including Conditional Access policies, Defender settings, and a third-party backup, since Premium does not include backup.
Can I mix licence tiers across one company?
Yes. Many businesses assign Business Premium to management, finance, and admin roles while front-line or seasonal staff run Business Basic or Standard.
Does Business Premium include backup?
No. No Microsoft 365 licence tier includes a true backup solution. A dedicated third-party backup product is still required, as covered in our Microsoft 365 backup guide.
Is Business Premium the same as an Enterprise plan?
No. Business plans cap out at 300 users and lack some of the advanced compliance and information governance tools found in Microsoft 365 E3 and E5.
Where can I find current Microsoft 365 pricing in Canadian dollars?
Microsoft's official Microsoft 365 pricing page lists current CAD rates by plan and is the only reliable source, since prices are updated periodically.
Joshua Arimoro
Joshua Arimoro is the Principal Consultant at Nickel City Tech Solutions, a managed IT and cybersecurity provider based in Lively, Ontario, serving businesses across Greater Sudbury and Northern Ontario. He works hands-on with Microsoft 365, server and network infrastructure, endpoint management, and backup and recovery for small and mid-sized organisations.
More about our teamLet us match your licensing to your actual risk
We assess your current Microsoft 365 licensing against your compliance obligations and security posture, then recommend the right tier per role.
Technologies mentioned in this article
See what we support around each platform on our supported technologies hub.
Related services, locations, and resources
Related services
- Microsoft 365 Support
Exchange, Teams, SharePoint, OneDrive, and licensing.
- Managed IT Services
Proactive monitoring, patching, and predictable monthly support.
- Cybersecurity Services
Endpoint protection, MFA, email filtering, and M365 hardening.
- Backup & Disaster Recovery
Backup strategy, monitoring, and recovery testing.
Related service areas
Related resources
- Microsoft 365 Business Setup Checklist for Small Businesses
A complete, phased checklist for setting up a new Microsoft 365 tenant correctly the first time, from domai…
- How to Secure Microsoft 365 Against Business Email Compromise
Business email compromise is a financial fraud problem that happens to live inside your inbox. Here is how …
- How Much Does Microsoft 365 Cost for a Small Business in Canada?
Microsoft 365 pricing depends on licence tier, commitment term, add-ons, and how you buy. Here is how the c…
- IT Onboarding Checklist for New Employees
A practical IT onboarding checklist for new hires: accounts, MFA, device setup, security, permissions, Micr…
