Microsoft 365 Licences Explained: Which One Is Right for Your Business in 2025?

If you run a business in London or anywhere in the UK, choosing the right Microsoft 365 licence can be confusing. Between Business Basic, Business Standard, Premium, and the Enterprise plans, many companies end up paying for the wrong package — or missing out on features that could boost productivity and security.

In this 2025 guide, the Microsoft 365 consultants at Connect by Cloud (London) explain what each licence includes, who it’s best for, and how to pick the right plan for your business.

 What Is Microsoft 365?

Microsoft 365 (formerly Office 365) is the all-in-one productivity suite that powers millions of UK businesses. It combines familiar tools such as Word, Excel, PowerPoint, Outlook, and Teams with advanced cloud services like SharePoint, OneDrive, and Exchange Online.

For London-based SMEs, Microsoft 365 also provides:

  • Secure cloud storage compliant with UK data protection laws.
  • Remote collaboration tools ideal for hybrid working.
  • Enterprise-grade cybersecurity and device management.

With the rise of Microsoft Copilot AI, 2025 marks a turning point for businesses looking to work smarter, not harder.

 Microsoft 365 Licence Options in 2025

Microsoft offers two main licence categories:

  • Business plans – for up to 300 users.
  • Enterprise plans – for larger or more regulated organisations.

Let’s explore the differences.

Microsoft 365 Business Basic

Best for: Start-ups or small teams working entirely online.

Includes:

  • Web and mobile versions of Word, Excel, and PowerPoint.
  • Microsoft Teams for chat, calls, and meetings.
  • 1 TB OneDrive storage per user.
  • Professional email hosting with Exchange Online.

A great entry-level plan for small London businesses starting their cloud journey.

 Microsoft 365 Business Standard

Best for: Growing SMEs that need full desktop apps and better collaboration.

Includes:

  • Everything in Basic, plus desktop versions of Office apps for PC and Mac.
  • Publisher and Access (PC only).
  • Microsoft Bookings for online appointments.

Ideal for London service companies that work both online and offline.

Microsoft 365 Business Premium

Best for: Businesses that need stronger IT security and remote management.

Includes:

  • Everything in Standard, plus:
    • Microsoft Defender for Business.
    • Intune for device and app management.
    • Conditional Access and Data Loss Prevention.
    • Azure Information Protection.

Perfect for London law firms, financial services, and healthcare organisations handling sensitive data.

Microsoft 365 Enterprise (E3 & E5)

Best for: Larger organisations or those with complex compliance requirements.

E3 offers advanced compliance tools, desktop apps, and Windows Enterprise.
E5 adds high-end security, analytics, and Microsoft Teams Phone.

Ideal for UK enterprises needing end-to-end protection, data governance, and scalability.

What’s New for Microsoft 365 in 2025?

Microsoft continues to expand AI integration with Copilot for Microsoft 365, helping users write emails, create documents, summarise meetings, and analyse data.

Note: Copilot can be added to Business Standard, Premium, or Enterprise plans — a smart upgrade for London businesses focusing on automation and productivity.

Quick Comparison Table

Plan Business Size Security Level Desktop Apps Device Management AI Copilot Add-On Ideal For
Business Basic 1–20 users Low ❌ ❌ ✅ Start-ups, micro-businesses
Business Standard 10–100 users Medium ✅ ❌ ✅ Growing SMEs
Business Premium Up to 300 users High ✅ ✅ ✅ Security-focused SMEs
Enterprise E3 300+ users High ✅ ✅ ✅ Corporate & public sector
Enterprise E5 300+ users Very High ✅ ✅ ✅ Finance, law, healthcare

How to Choose the Right Microsoft 365 Licence in London

When selecting your Microsoft 365 licence, consider:

  • Data protection: UK businesses must comply with GDPR — Premium and E plans include tools for this.
  • Hybrid working: Teams and OneDrive are vital for remote setups.
  • IT support needs: Premium and Enterprise licences integrate with professional IT support services in London for easier management.
  • Budget vs. scalability: Business Standard is great value, but Premium offers far stronger security for only a small jump in price.

Still unsure? That’s where a Microsoft 365 consultant can help.

Why Work With a Microsoft 365 Consultant in London?

At Connect by Cloud, we specialise in helping UK businesses:

  • Choose the right Microsoft 365 plan.
  • Manage licence renewals and upgrades.
  • Migrate email, data, and Teams to the cloud.
  • Secure their environments with best-practice configuration.

Our London-based IT consultants provide ongoing support, cybersecurity, and Microsoft 365 management so your team can focus on what matters most — growing your business.

Ready to Optimise Your Microsoft 365 Setup?

Whether you’re upgrading, migrating, or just exploring options, our experts can help you get the best from your Microsoft 365 investment.

Book a free Microsoft 365 licence consultation in London today with Connect by Cloud — your trusted Microsoft 365 consultancy and IT support partner in the UK.

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