Microsoft 365 Business Basic
Web apps + Teams + email — the entry-level business plan
In this guide
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Who Is Business Basic For?
Business Basic is the cheapest way to get Teams and business email under your own domain. No desktop apps — everything runs in the browser or on mobile.
Basic is right for you if:
- ✅ Your team only needs email, Teams, and cloud storage
- ✅ Everyone works in web browsers (no desktop app requirement)
- ✅ Budget is the top priority — $7/user is the lowest M365 price
- ✅ Under 300 users
- ✅ You provide desktop apps separately (e.g., via Microsoft 365 Apps for Business)
You’ll probably outgrow Basic if:
- ❌ Users need desktop Word, Excel, or PowerPoint installed on their computers
- ❌ You want Microsoft 365 Copilot — Basic is not eligible
- ❌ You need any security features (Intune, Defender, Conditional Access)
What’s Included in Business Basic
📧 Productivity & Communication
| Feature | What You Get |
|---|---|
| Web & Mobile Office Apps | Word, Excel, PowerPoint, Outlook — browser and iOS/Android only |
| Exchange Online | 50 GB mailbox per user, custom domain email, shared mailboxes |
| Microsoft Teams | Chat, video meetings (up to 300 participants), screen sharing |
| SharePoint Online | Team sites, document libraries, intranet |
| OneDrive for Business | 1 TB cloud storage per user |
| Microsoft Lists | Track information with customisable lists |
| Microsoft Forms | Surveys, quizzes, and polls |
| Microsoft Planner | Basic task management boards |
| Microsoft Sway | Interactive presentations and newsletters |
| Microsoft Bookings | Online appointment scheduling |
⚠️ What’s NOT Included
| Missing Feature | What You Need Instead |
|---|---|
| Desktop Office apps | Upgrade to Business Standard ($14) |
| Intune (device management) | Upgrade to Premium ($22) |
| Defender for Business | Upgrade to Premium |
| Conditional Access / Entra P1 | Upgrade to Premium |
| Microsoft 365 Copilot eligibility | Upgrade to Standard or Premium |
Business Basic vs Standard vs Premium
flowchart LR
BAS["Basic
$7/mo
Web apps only"]
STD["Standard
$14/mo
+ Desktop apps"]
PRE["Premium
$22/mo
+ Security suite"]
BAS -->|"+$7"| STD
STD -->|"+$8"| PRE
| Feature | Basic ($7) | Standard ($14) | Premium ($22) |
|---|---|---|---|
| Web & Mobile Office Apps | ✅ | ✅ | ✅ |
| Desktop Office Apps | ❌ | ✅ | ✅ |
| Exchange (50 GB) + Teams | ✅ | ✅ | ✅ |
| OneDrive (1 TB) | ✅ | ✅ | ✅ |
| Webinar hosting | ✅ | ✅ | ✅ |
| Microsoft Bookings | ✅ | ✅ | ✅ |
| Intune + Defender | ❌ | ❌ | ✅ |
| Entra ID P1 (Conditional Access) | ❌ | ❌ | ✅ |
| Copilot eligible | ❌ | ✅ | ✅ |
| Max users | 300 | 300 | 300 |
💡 Honest advice: Basic is fine for very small teams that only need email and Teams. But most businesses quickly outgrow it — desktop apps and Copilot eligibility make Standard the sweet spot.
Business Basic vs Enterprise Plans
If you’re comparing Basic to enterprise options:
| Feature | Basic ($7) | O365 E1 ($10) | M365 E3 ($39) |
|---|---|---|---|
| Web & Mobile Apps | ✅ | ✅ | ✅ |
| Desktop Apps | ❌ | ❌ | ✅ |
| Mailbox | 50 GB | 50 GB | 100 GB |
| Security suite | ❌ | ❌ | ✅ |
| User limit | 300 | Unlimited | Unlimited |
| Copilot eligible | ❌ | ❌ | ✅ |
💡 Choosing between Basic and E1: If you have under 300 users, Basic at $7 saves $3/user/month over E1 for essentially the same features. If you might exceed 300 users, start with E1 to avoid a migration later.
Frequently Asked Questions
1. Does Business Basic include desktop Office apps?
No. Business Basic only includes web and mobile versions of Office apps. For desktop apps (installed Word, Excel, PowerPoint), upgrade to Business Standard ($14) or Business Premium ($22).
2. Can I add Copilot to Business Basic?
No. Microsoft 365 Copilot requires Business Standard or Premium as a base plan. Business Basic is not eligible for the Copilot add-on.
3. What is the difference between Business Basic and Office 365 E1?
Very similar features — both offer web apps, email, and Teams. Business Basic ($7) is cheaper but capped at 300 users. Office 365 E1 ($10) has no user limit and is designed for enterprises.
4. How much storage do I get with Business Basic?
Each user gets a 50 GB Exchange mailbox and 1 TB of OneDrive storage. SharePoint offers 1 TB base plus 10 GB per user.
5. Can I upgrade from Basic to Standard later?
Yes — it’s an instant upgrade in the Microsoft 365 admin centre. No data migration needed. Users keep all email and files.
6. Is Business Basic enough for a small team?
If your team only needs email, Teams, and cloud storage — and everyone works in web browsers — yes. But most businesses quickly outgrow it because desktop apps and Copilot eligibility require Standard or Premium.