1 June 2026

Microsoft 365 for Small Businesses: Which Plan Do You Actually Need? (2026 UK Guide)

A smartphone screen displaying the Microsoft 365 app launcher interface with icons for Outlook, OneDrive, Word, Excel, PowerPoint, and SharePoint.

Here is a scenario that will sound familiar to many business owners: you are paying for software that half your team barely uses, your staff share files by emailing attachments back and forth, and when someone works from home, accessing anything feels like a minor ordeal.

Microsoft 365 solves all three of those problems. But with three main business plans, a looming price increase, and enough features to fill a brochure, choosing the right setup can feel overwhelming.

At Shropshire Computers, we help local businesses set up and get the most from Microsoft 365 every week. This guide cuts through the jargon, compares every plan in plain English, and tells you exactly what to do — including an important heads-up about price changes coming on 1 July 2026.

What Is Microsoft 365 and Why Do Small Businesses Use It?

Microsoft 365 (still sometimes called Office 365) is a cloud-based subscription service from Microsoft. It bundles together the tools most businesses rely on daily — email, Word, Excel, PowerPoint, Teams, OneDrive, SharePoint, and more — into a single monthly or annual subscription.

Instead of buying software licences outright and installing programmes on individual machines, Microsoft 365 gives your team access to everything through the cloud. That means:

  • Staff can work from anywhere — the office, home, or a client’s site — without needing to be physically at their desk.
  • Everything stays up to date automatically — no more paying for new versions of Office or waiting for IT to push updates.
  • Your data is backed up in the cloud — files saved to OneDrive or SharePoint are accessible even if a laptop is lost, stolen, or broken.
  • You only pay for the number of users you need — scale up as you hire, scale back if the team shrinks.

For small businesses, the appeal is clear: enterprise-level tools at a predictable, per-user monthly cost, with no need for a large upfront investment

What Does Microsoft 365 Business Basic Include?

Business Basic is the entry-level plan.

It includes:

  • Web and mobile versions of Word, Excel, PowerPoint, and Outlook — but not desktop installations
  • Microsoft Teams for video calls, chat, and online meetings
  • Exchange Online — professional business email with a 50GB mailbox per user
  • SharePoint for team document libraries and intranet sites
  • 1TB OneDrive cloud storage per user

Best for: Small teams where staff work primarily in a browser, do not need complex spreadsheets or documents, and are happy running everything online rather than on an installed application. A good fit for a small admin team, a receptionist, or a remote worker who checks email and attends Teams calls.

Not ideal for: Staff who need powerful desktop versions of Excel for financial modelling, who work offline regularly, or who need features like mail merge in Outlook.

What Does Microsoft 365 Business Standard Include?

Business Standard is the most popular plan for small businesses.

It includes everything in Business Basic, plus:

  • Full desktop installations of Word, Excel, PowerPoint, Outlook, OneNote, Publisher, and Access — on up to five devices per user
  • Microsoft Bookings for online appointment scheduling
  • Webinar tools for hosting online events for external attendees

Best for: The majority of small businesses where staff rely on desktop Office applications, run complex Excel workbooks, use Outlook for email management, or need the full Microsoft Office experience rather than web-only versions. This is the plan Shropshire Computers recommends most often as the starting point for growing businesses.

What Does Microsoft 365 Business Premium Include?

Business Premium is the top-tier business plan.

It includes everything in Business Standard, plus a comprehensive security and device management layer:

  • Microsoft Defender for Business — advanced protection against malware, ransomware, and phishing, with real-time endpoint detection and response
  • Microsoft Intune — device management that lets IT administrators manage and secure all company devices (Windows, macOS, iOS, and Android) from a single dashboard
  • Entra ID P1 (formerly Azure AD P1) — conditional access policies, so staff can only connect from approved devices and locations
  • Azure Information Protection — tools to classify, label, and protect sensitive documents
  • Advanced email threat protection — safe links and safe attachments that scan every incoming email for threats before they reach your inbox

Best for: Businesses that handle confidential client data, operate in a regulated sector (finance, legal, healthcare, or accountancy), have staff using personal devices to access company systems, or are working towards Cyber Essentials Plus certification. If your business uses Remote Desktop or supports hybrid working, Business Premium gives you the security infrastructure to do that safely.

Microsoft 365 Business Premium is not shown as receiving a July 2026 price increase, while Business Standard will increase. That changes the value calculation significantly — and is worth discussing with Shropshire Computers before your next renewal.

Which Microsoft 365 Plan Is Right for Your Business?

Here is a quick decision guide:

  • Choose Business Basic if your team works mainly in a browser, needs email and Teams, and does not rely on desktop Office applications.
  • Choose Business Standard if your team needs full desktop Word, Excel, and Outlook, and you want the complete Microsoft 365 productivity experience.
  • Choose Business Premium if you handle sensitive data, have remote or hybrid workers, want enterprise-grade security, or are in a regulated industry.

Not sure? Shropshire Computers offers consultation to help you find the right fit without overspending. Contact us to discuss your options.

What Are the Key Microsoft 365 Tools Your Team Will Actually Use Every Day?

Understanding the plans is one thing. Knowing what the tools actually do — and how they make daily work easier — is where the real value becomes clear.

Microsoft Teams — How Does It Help Small Businesses?

Teams is the communication hub inside Microsoft 365. It replaces the need for separate video calling software (like Zoom), reduces email back-and-forth between colleagues, and keeps project conversations in one searchable place.

With Teams, your staff can:

  • Make video calls and host meetings with up to 300 people
  • Chat in group channels organised by project, team, or topic
  • Share and collaborate on documents directly within the app, without emailing attachments
  • Make calls to external phone numbers (with the right add-on)

For businesses that rely on remote or hybrid working, Teams is often the tool that makes it all feel manageable. Many local businesses across Shropshire have told us that Teams cut their internal email volume significantly within the first few weeks of switching.

OneDrive and SharePoint — Where Does Your Business Data Live?

OneDrive gives every user 1TB of personal cloud storage. Files saved to OneDrive sync automatically across all devices — so a document edited on a laptop at home appears instantly on the office PC.

SharePoint is the team version of the same idea. It provides a shared document library for your whole business — or for specific teams and departments — where everyone can access, edit, and collaborate on files in real time.

Together, OneDrive and SharePoint replace the need for a traditional file server. For small businesses that have historically relied on a shared drive on a physical server, moving to SharePoint is often one of the biggest quality-of-life improvements Microsoft 365 delivers.

Exchange Online — Is It Better Than a Standard Email Provider?

Yes — for most businesses. Exchange Online gives every user a professional email address (yourname@yourbusiness.co.uk), a 50GB mailbox, a shared calendar, and advanced email management tools.

Compared to cheaper or free email providers, Exchange Online offers:

  • Better reliability — Microsoft’s infrastructure is backed by a 99.9% uptime guarantee
  • Better security — built-in spam filtering, malware scanning, and (in Business Premium) advanced threat protection
  • Shared calendars and meeting rooms — making it easy to schedule across the team
  • Full integration with Outlook, Teams, and the rest of the Microsoft 365 suite

For businesses currently using Gmail, a basic cPanel webmail provider, or a free email address, moving to Exchange Online via Microsoft 365 is a meaningful professional upgrade.


An overhead view of a person typing on a Windows 11 2-in-1 tablet laptop during a meeting at a wooden table with coffee mugs and an open notebook.


How Do You Set Up Microsoft 365 for a Small Business?

Setting up Microsoft 365 is straightforward when handled by an experienced IT provider. Here is what the process typically looks like for a small business:

1 — Choose the right plan Work with your IT provider to match the plan to your team’s actual needs. Avoid paying for features nobody will use, but don’t cut corners on security if your business handles client data.

2 — Purchase licences Buy licences through a Microsoft partner (like Shropshire Computers) rather than directly through Microsoft, as partners can often offer better pricing, combined support, and ongoing account management.

3 — Set up your domain Connect your business domain (yourbusiness.co.uk) to Microsoft 365 so your team gets professional email addresses. This involves updating DNS records — your IT provider handles this for you.

4 — Migrate existing email and files If you’re moving from a previous email provider or file server, your IT provider will migrate your existing emails, contacts, calendars, and files to Microsoft 365 without data loss.

5 — Set up users and configure security Create user accounts, set passwords, enable Multi-Factor Authentication (MFA), and configure sharing and permissions across SharePoint and OneDrive.

6 — Train your team A short briefing session on Teams, OneDrive, and the new email setup goes a long way. Shropshire Computers includes basic user training as part of all Microsoft 365 deployments.

Find out more about our Microsoft 365 setup and migration service.

What Are the Security Features in Microsoft 365?

Security is one of the most important reasons small businesses choose Microsoft 365 over cheaper alternatives. Even the entry-level plans include meaningful security features, and Business Premium adds a full enterprise-grade security stack.

Security features available across all plans:

  • Multi-Factor Authentication (MFA) — the single most effective protection against unauthorised account access. Microsoft 365 makes this easy to enable for every user.
  • Basic spam and malware filtering — built into Exchange Online on all plans.
  • Data stored in Microsoft’s UK and European data centres — relevant for GDPR compliance.

Additional security in Business Premium:

  • Microsoft Defender for Business — real-time antivirus, ransomware protection, and threat detection across all company devices.
  • Intune device management — the ability to enforce security policies, remotely wipe lost devices, and manage what apps can be installed.
  • Conditional access — limit who can log in and from which devices or locations.
  • Advanced email protection — scanning every link and attachment in incoming emails before they reach your team.

For businesses that also use Remote Desktop or RDS servers to give staff remote access, Microsoft 365 Business Premium provides the identity and device management controls that make that setup significantly more secure. Learn more about secure remote working for small businesses.

The UK’s National Cyber Security Centre (NCSC) recommends enabling MFA as a priority for all small businesses. Microsoft 365 makes this straightforward, even for non-technical business owners. More detail is available in the NCSC’s Small Business Guide.

How Can Shropshire Computers Help You Get the Most from Microsoft 365?

Microsoft 365 is a powerful platform — but like any tool, it delivers the most value when it is set up correctly, used consistently, and supported by someone who knows what they’re doing.

Shropshire Computers provides a complete Microsoft 365 service for local businesses, including:

  • Licence purchasing — Sourcing Microsoft 365 licences for you.
  • Migration — Moving your existing emails, contacts, calendars, and files to Microsoft 365 without disruption to your working day.
  • Configuration and security setup — Configuring MFA, email security, SharePoint permissions, and device management to your business’s specific needs.
  • Ongoing support — Providing day-to-day Microsoft 365 support as part of our managed IT service, so you always have someone to call when something isn’t working.
  • Training — Running straightforward training sessions to help your team get comfortable with Teams, OneDrive, and the rest of the suite quickly.

We support small businesses across Shropshire. Whether you are setting up Microsoft 365 for the first time, migrating from a previous provider, or just unsure whether you are on the right plan, we are here to help.

Contact Shropshire Computers for a Microsoft 365 consultation

Frequently Asked Questions

What is Microsoft 365 and is it the same as Office 365?

Yes — Office 365 and Microsoft 365 are effectively the same product, now rebranded. Microsoft 365 is a cloud-based subscription service that includes email (via Exchange Online), the full Office suite (Word, Excel, PowerPoint, Outlook), Microsoft Teams, OneDrive cloud storage, SharePoint, and a range of security tools. The rebrand reflects how much the platform has grown beyond traditional Office software.

What is the difference between Microsoft 365 Business Basic, Standard, and Premium?

The main difference is desktop apps and security. Business Basic includes web versions of Office apps only. The Standard plan adds full desktop installations of Word, Excel, PowerPoint, and Outlook. Business Premium adds everything in Standard plus enterprise-grade security: Microsoft Defender for Business, Intune device management, conditional access, and advanced email threat protection.

Can my staff work from home with Microsoft 365?

Yes — and this is one of the strongest reasons small businesses choose it. With Microsoft 365, staff access email, files, Teams calls, and Office apps from any device, anywhere, over a standard internet connection. OneDrive and SharePoint keep files synced and accessible. Teams replaces the need for staff to be in the same office to collaborate effectively.

Is Microsoft 365 secure enough for a small business handling client data?

Yes, particularly on the Business Premium plan. Business Premium includes Microsoft Defender for Business (endpoint protection), Intune (device management), advanced email threat protection, and conditional access controls. For businesses in regulated sectors — such as legal, financial services, or healthcare — Premium is the recommended tier. All plans store data in Microsoft’s certified data centres, which supports GDPR compliance.

Do I need an IT provider to set up Microsoft 365, or can I do it myself?

Technically, you can set it up yourself. In practice, the migration of existing emails and files, the correct configuration of security settings, and the DNS changes needed to connect your domain are all areas where mistakes can cause disruption. Most small businesses find that using a local IT provider like Shropshire Computers to handle the setup saves time, prevents data loss, and means the configuration is done correctly from day one.

What happens to my data if I cancel Microsoft 365?

If you cancel your subscription, Microsoft gives you a grace period (typically 30 days for most plans) during which you can download your data. After that period, your data is deleted. Before cancelling, your IT provider should export all emails, files, and other data to a local or alternative location. Shropshire Computers handles offboarding as part of our ongoing Microsoft 365 support.

Is there a price increase for Microsoft 365 in 2026?

Yes. Microsoft has confirmed a price increase effective from 1 July 2026, with increases ranging from around 8% to over 30% depending on the plan. Businesses that renew their annual subscription before 30 June 2026 can lock in current pricing for up to 36 months. Contact Shropshire Computers as soon as possible to discuss your renewal options.

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