Choosing the right Microsoft 365 plan shouldn’t require a degree in licensing. This guide distils what we at PIP recommend for most Australian small‑to‑mid organisations, with clear scenarios, plan picks, and the “why” behind each choice. It also flags critical 2025 billing changes that can save (or cost) you money.
Additionally, this guide will help organisations understand the differences in features and management controls available in an enterprise office environment.
Key Takeaways
- Office 365 focuses on productivity applications, while Microsoft 365 adds enhanced security and support, catering to a broader range of organizational needs.
- Businesses can choose from various plans under Office 365 and Microsoft 365, with annual subscriptions typically offering cost savings compared to monthly billing.
- Security Features vary across Office 365 plans, with higher-tier options like Business Premium and E5 providing advanced capabilities to protect sensitive information.
Microsoft 365 Quick Plan Selector
| Your situation | PIP recommendation | Why this plan |
|---|---|---|
| You need Outlook email, Teams, and the full desktop Office apps for staff (≤300 users). | Microsoft 365 Business Standard | Best price-to-capability for core productivity (desktop + cloud). |
| You must manage and secure devices (Windows/Mac/iOS/Android), enforce MFA/conditional access, defend against phishing/ransomware. | Microsoft 365 Business Premium | Adds Intune (device/app management), Defender for Business, DLP, conditional access. |
| Staff don’t need Outlook mail or Teams; you just want Office apps and OneDrive. | Microsoft 365 Apps for Business | Desktop apps + 1 TB OneDrive; no Exchange/Teams/SharePoint. |
| Front‑of‑house or light users who mostly chat/meet and use web versions of apps. | Microsoft 365 Business Basic | Web/mobile apps, Exchange Online mail, Teams, 1 TB OneDrive at low cost. |
| You’ve outgrown 300 users, need advanced compliance, voice, or enterprise‑grade analytics. | Microsoft 365 E3 (or E5 if security/voice are must‑haves) | Enterprise features, unlimited users; E5 adds advanced security, analytics, and voice options. |
Understanding Office 365 and Microsoft 365
Office 365: The Productivity Suite
Office 365 is primarily a cloud-based productivity platform. It includes the familiar applications most people associate with Microsoft—Word, Excel, PowerPoint, Outlook, OneNote, and collaboration tools like Teams. These apps are available in web versions, mobile versions, and desktop versions depending on the plan. Office 365 focuses on productivity and communication, offering email hosting through Exchange Online, file storage via OneDrive, and team collaboration through SharePoint and Teams. It’s ideal for organisations that need core office apps, business class email and basic collaboration without advanced cybersecurity or device management requirements.
Microsoft 365: The Full Ecosystem
Microsoft 365 includes everything in Office 365, but goes much further. It’s a comprehensive suite that combines productivity apps with Windows 10/11 Enterprise licensing, Enterprise Mobility + Security (EMS), and tools like Microsoft Defender. In 2025, Microsoft 365 also integrates Copilot AI across its apps, enabling features such as automated content generation, meeting summaries, and data insights. This makes Microsoft 365 not just a software bundle, but a strategic platform for security, compliance, and AI-driven productivity. It’s designed for businesses that need device and identity management, zero-trust security, and compliance controls in addition to productivity tools.
Features and Benefits of Office 365 and Microsoft 365
Office 365 and Microsoft 365 deliver a comprehensive suite of features designed to empower businesses of all sizes. With Microsoft 365, organizations benefit from cyber-security features, including Microsoft Defender, which safeguards sensitive data and helps maintain compliance with industry standards. The platform’s security and compliance features, such as data loss prevention and manual retention labels, ensure that your business information is protected and managed effectively.
Collaboration is at the heart of Microsoft 365, with Microsoft Teams providing advanced collaboration tools like audio conferencing and seamless integration with Microsoft Bookings for scheduling and managing appointments. These tools enable teams to work together efficiently, whether they’re in the office or working remotely. Business apps such as Microsoft Forms and Microsoft Editor streamline workflows, making it easy to collect information, analyze data, and produce polished documents.
Cloud storage is another key benefit, with each user or Microsoft account receiving ample space to store, access, and share files securely from anywhere. The availability of desktop versions of office apps ensures that users can work offline with full functionality, while mobile and web versions offer flexibility on the go. Microsoft 365 business plans also include advanced data governance tools, helping organizations manage compliance and protect sensitive information.
AI features, including built-in intelligent features and personal insights, further enhance productivity by automating routine tasks and providing actionable recommendations. Whether you need just the basics or a robust platform with security and collaboration tools, Office 365 and Microsoft 365 offer scalable solutions to meet your business needs.
Comparing Office 365 Business Plans
Office 365 Business plans are designed for companies with 300 employees or less, offering a range of features to meet different business needs. These plans include Business Basic, Business Standard, and Business Premium, each catering to specific requirements such as online work, offline access, and security.
Knowing the details of these enterprise plan helps businesses select the appropriate advanced tools to boost productivity and collaboration.
Office 365 Business Basic
The Office 365 Business Basic plan is tailored for small businesses and online work environments. It provides:
- Web and mobile access to essential Office apps like Word, Excel, and PowerPoint, ideal for users who primarily work online.
- A custom email address.
- Essential email and collaboration tools such as Microsoft Teams.
- OneDrive, ensuring seamless communication and file sharing.
Running a small business often requires reliable tools for communication and document management. The Business Basic plan provides core Microsoft apps, Microsoft Access, business apps, and services apps accessible via web browsers or mobile devices, ensuring productivity both in the office and on the go, covering just the basics.
This plan is ideal for businesses needing basic tools: managing emails, collaborating on documents, and securely storing files in the Microsoft cloud. The Business Basic plan helps small businesses operate efficiently without complex IT infrastructure.
Office 365 Business Standard
The Office 365 Business Standard plan takes productivity a step further by including fully installed desktop versions of Office applications such as Word, Excel, and PowerPoint. This means that users can access these tools offline, enhancing their ability to work without an internet connection and providing full functionality compared to web-based versions.
In addition to the features of the Business Basic plan, Business Standard offers advanced email and collaboration tools, including Microsoft Teams, which allows hosting meetings for up to 300 participants. This makes it an excellent choice for businesses that require more robust communication and management controls.
A company that frequently collaborates on complex projects will find the desktop apps and task automation features of Business Standard beneficial. This plan ensures all team members can automatically convert access to powerful power apps, enabling seamless collaboration and efficient project management through shared computer activation and app management.
Office 365 Business Premium
For businesses with higher security needs, the Office 365 Business Premium plan is the ideal choice. It includes security systems such as Microsoft Defender and Azure Information Protection, which protect against cyber threats and ensure compliance with data protection regulations. This makes it suitable for small businesses that handle sensitive information and require robust security measures.
The Business Premium plan also provides access to premium versions of Microsoft applications and services, further enhancing productivity and collaboration. With tools like Microsoft Editor and Microsoft Purview, businesses can ensure that their content is not only secure but also of high quality.
A small business dealing with sensitive client information can benefit from the cybersecurity features and additional services of the Business Premium plan. This plan ensures data protection and compliance, making it suitable for businesses requiring advanced message encryption, advanced productivity tools, and comprehensive security.
Microsoft 365 Business Plans Pricing
| Plan | Annual Price (AUD) | Monthly Price (AUD) | Users | Includes |
|---|---|---|---|---|
| Business Basic | AU$9.00/user/month | AU$10.80/user/month | 1–300 | Web & mobile apps, Teams, 1 TB OneDrive, Exchange email hosting |
| Business Standard | AU$18.70/user/month | AU$22.44/user/month | 1–300 | Desktop apps (Word, Excel, etc.), Teams, 1 TB OneDrive, Exchange email |
| Business Premium | AU$32.90/user/month | AU$39.48/user/month | 1–300 | All Standard features + advanced security, device management |
| Apps for Business | AU$13.00/user/month | AU$15.60/user/month | 1–300 | Desktop apps only, 1 TB OneDrive, no email hosting |
Office 365 Enterprise Plans Comparison
Office 365 Enterprise plans cater to larger organizations with more complex needs. These plans include:
- Microsoft 365 E1
- Microsoft 365E3
- Microsoft 365 E5
Each offering a different set of features and capabilities. Enterprise plans are designed to support unlimited users, making them ideal for large enterprises.
Knowing the differences between these plans helps organizations select the right tools for productivity, security, and compliance.
Office 365 E1
The Office 365 E1 plan is designed for budget-conscious teams that primarily work online. It provides access to web and mobile versions of core Office applications, such as Word, Excel, and PowerPoint, allowing users to work from anywhere. Additionally, the E1 plan includes professional email services with a 50 GB mailbox.
Businesses needing essential services without desktop Office apps will find the E1 plan cost-effective. It includes Microsoft’s email and collaboration tools, such as Microsoft Teams and OneDrive, ensuring efficient communication and file sharing.
However, the E1 plan does not include desktop versions of Office apps, which may limit some users regarding app availability. Despite this, it suits teams working primarily online and needing basic productivity tools.
Office 365 E3
The Office 365 E3 plan offers a balance between productivity and security, making it ideal for organizations handling sensitive data. It includes desktop versions of Office apps for installation on up to five devices per user, providing full offline access and functionality. The E3 plan includes security options, such as:
- Data Loss Prevention
- Message encryption
- Email archiving
- Legal compliance tools.
A healthcare organization managing patient data will benefit from the E3 plan’s enhanced security features, access management, and compliance tools, ensuring sensitive information is protected and regulatory requirements are met.
In addition to security, the E3 plan includes advanced collaboration tools, such as Microsoft Teams, which supports hosting meetings and webinars. This makes it an excellent choice for organizations that need robust communication and project management capabilities.
Office 365 E5
For organizations managing critical data and requiring advanced insights, the Office 365 E5 plan is the top-tier option. It includes all the features of the E3 plan, plus:
- Advanced security and compliance capabilities, such as Microsoft Defender for Office 365
- Advanced threat protection
- Comprehensive compliance tools
- Advanced analytics through Power BI Pro and MyAnalytics, providing valuable business insights.
A financial institution needing to protect sensitive client data and gain business insights will benefit from the E5 plan’s cybersecurity features and analytics tools. This ensures data security and informed decision-making based on comprehensive complex data analysis.
With its enterprise voice capabilities and AI features, the E5 plan is designed for large organizations that require built in intelligent features, top-tier security, compliance, and analytics tools. This plan is ideal for businesses that handle critical or regulated data and need advanced protection and insights.
Microsoft 365 Enterprise Plans Pricing Matrix
| Plan | Approx. Price (AUD) | Includes |
|---|---|---|
| Office 365 E1 | ~AU$12–14/user/month | Web apps & mobile versions only, Teams, Exchange email, SharePoint, OneDrive |
| Microsoft 365 E3 | ~AU$47–50/user/month | Desktop apps, Teams, email, advanced compliance, security basics |
| Microsoft 365 E5 | ~AU$79–85/user/month | All E3 features + advanced security, analytics, voice, Power BI Pro |
Security Features Across Office 365 Plans
Security is a critical aspect of any business, and Office 365 plans offer a range of security features to protect against unauthorized access and cyber threats. Frontline/entry plans focus on secure access to web and mobile apps plus cloud services (Exchange Online Protection, OneDrive, SharePoint, Teams). You get the baseline email filtering, safe sharing defaults, password & MFA (Microsoft Multi Factor Authentication) policies through Entra ID, and core audit capabilities. Security platforms to protect against unauthorized access and cyber threats. However, for businesses with higher security needs, cybersecurity features are available in higher-tier plans.
Office 365 plans, providing foundational protection for all users. However, for businesses with higher security needs, cybersecurity features are available in higher-tier plans.
The Business Premium plan, for example, includes features like Microsoft Defender for advanced security, compliance management and ASD Essential 8 adherence. It also incorporates device management and data loss prevention, making it ideal for businesses requiring advanced protection.
For enterprise customers, the E3 and E5 plans offer sophisticated security options. The E3 plan includes Data Loss Prevention and legal compliance tools for managing sensitive data. The E5 plan enhances security with advanced threat protection and compliance features, such as Microsoft Defender for Office 365, ensuring comprehensive protection against sophisticated cyber threats.
Microsoft 365 Add‑ons you should consider (and when)
| Add‑on | Who should add it | What you get |
|---|---|---|
| Microsoft 365 Copilot (AU$44.90 user/month) | Roles heavy on writing, analysis, slide building | AI assistance inside Word/Excel/PowerPoint/Outlook/Teams; deploy selectively for ROI. |
| Microsoft 365 E5 Security (as an add‑on to Business Premium) | SMBs needing enterprise‑grade detection & response | Defender for Endpoint Plan 2, Defender for Office 365 Plan 2, Entra ID P2, Defender for Identity, Defender for Cloud Apps. |
| Teams Phone | If you want to replace the phone system with Teams | PSTN calling (with carriers), auto attendants, call queues; licensing depends on country/carrier. |
| Power BI Pro | Data‑driven teams sharing interactive reports | Publish/share dashboards; included in E5, otherwise separate licenses. |
Apps and Services Included in Office 365 Plans
Office 365 plans come with a variety of apps and services designed to enhance productivity and collaboration. Core apps like Word, Excel, and PowerPoint are included in all plans, allowing for powerful document creation and editing. Outlook provides email services along with calendar and task management functionalities, making it a key application in Office 365.
Businesses needing advanced collaboration tools will find that Business Standard and higher plans include Microsoft Teams included for hosting meetings of up to 300 participants. Additionally, Microsoft Forms allows users to create surveys and quizzes easily, facilitating data collection and analysis. Microsoft Teams audio conferencing is also available for enhanced communication.
Cloud storage is another essential service in Office 365 plans. Business Basic and higher plans offer 1 TB of OneDrive per paid subscription for secure file storage and sharing. For advanced analytics, the E5 plan includes Power BI Pro, providing enhanced business insights through comprehensive data analysis.
Apps, Features & Services Included in Microsoft 365 Matrix
| Microsoft 365 Feature | What It Does |
|---|---|
| Word, Excel, PowerPoint | Full desktop, web and mobile versions for document creation, spreadsheets, and presentations. |
| Outlook | Email client with calendar, tasks, and contact management. |
| OneNote | Digital notebook for notes, drawings, and multimedia. |
| Microsoft Teams | Chat, video meetings, file sharing, and collaboration hub. |
| SharePoint | Intranet and document management platform for team collaboration. |
| OneDrive | Microsoft Cloud storage with file sync, sharing, and version history. |
| Exchange Online | Business-class email hosting with 50 GB mailbox and custom domain support. |
| Microsoft Defender | Threat protection for devices and identities. |
| Intune | Mobile device and app management for security and compliance. |
| Copilot | AI-powered assistance in Office apps for content generation and analysis. |
| Power BI Pro | Data visualization and analytics (E5 only). |
| Compliance Tools | eDiscovery, retention policies, and legal hold for data governance. |
Office 365 Licensing Options
Office 365 offers flexible licensing options to meet the diverse needs of organizations:
- Standalone services such as Exchange Online and SharePoint Online can be purchased separately.
- These services can be integrated into existing plans or Microsoft user accounts
- All 365 Plans come with a one month free trial
- Plans with PIP can be paid for Monthly or Yearly.
This flexibility ensures that organizations can choose the specific tools they need without paying for unnecessary features.
Certain plans allow for feature additions through add-ons, enhancing base subscription functionality. Organizations can change their Microsoft 365 plan as needs evolve, allowing flexible subscription management. This adaptability ensures businesses can scale their IT infrastructure as they grow.
So Which Microsoft 365 Plan is Recommended for my Business ?
In summary, selecting the right Office 365 plan depends on your specific business needs. Office 365 offers a range of business and enterprise plans, from Business Basic with its essential online tools, to Business Premium and its advanced security features. For larger organizations, the Enterprise plans (E1, E3, E5) provide scalable solutions with varying degrees of security and collaboration tools.
It’s essential to carefully evaluate your organization’s size, budget, and requirements before making a decision. By understanding the differences between Office 365 and Microsoft 365, and analyzing the specific features and benefits of each plan, you can choose the solution that best aligns with your business goals. Remember, the right plan can enhance productivity, ensure security, and ultimately drive your business forward.
Stay Up to Date with PIP
Prices were accurate at the time of publication but may change without notice. For the latest pricing, current PIP promotions, or special offers, please get in touch with us.
Our team is here to help you:
- Choose the right Microsoft 365 plan and applicable subscription fee, for your business
- Plan your deployment for maximum efficiency
- Roll out Microsoft 365 smoothly with expert support
- Support and Manage Microsoft 365 with either an IT Managed Service or PIPs Ad-Hoc IT Support.
