February 24, 2025

Microsoft 365 Business vs Enterprise Apps: Which One Is Right for You?

Bones Ijeoma

CEO and co-founder

Struggling to choose between Microsoft 365 business and enterprise plans? This in-depth guide breaks down the key differences between them. Discover which plan best suits your business needs and get expert insights on maximizing Microsoft 365 for your company.

Choosing between Microsoft 365 Business vs Enterprise​ plans isn’t just about price—it’s about making sure your business has the right tools to grow, collaborate, and stay secure.

If you're unsure whether Microsoft 365 Business or Microsoft 365 Enterprise is the right fit, this guide will break down everything you need to know. We’ll compare features, pricing, and the real-world impact each plan can have on your company’s operations.

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Comparison chart of Microsoft 365 Business vs. Enterprise plans

Overview of Microsoft 365 apps: What you need to know

Microsoft 365 is a suite of productivity and collaboration tools designed to streamline work processes. Whether you're running a small startup or a growing mid-sized company, Microsoft 365 Business and Microsoft 365 Enterprise offer essential tools like Word, Excel, Outlook, and Microsoft Teams. However, the difference between Microsoft 365 apps for Enterprise vs. Business plans extends beyond these core applications.

While Microsoft 365 Business is tailored for small to mid-sized businesses with fewer than 300 users, Microsoft 365 Enterprise is designed for larger organizations that need advanced security, compliance, and AI-powered automation features.

Features of Microsoft 365 Business vs Enterprise

When comparing Microsoft 365 Business vs Enterprise, it’s crucial to understand what each plan offers:

  • Microsoft 365 Business plans cater to small businesses that need essential productivity tools and cloud storage. Business plans include Microsoft 365 Apps for Business, Microsoft 365 Business Basic, and Microsoft 365 Business Premium.
  • Microsoft 365 Enterprise plans, including Microsoft 365 E3 and Microsoft 365 E5, provide enterprise-grade security, compliance, and analytics. These plans come with advanced tools like Microsoft Advanced Threat Analytics and Microsoft Cloud App Security.

Here’s a breakdown of their key features:

Microsoft 365 for Business

  • Microsoft Teams for communication

  • OneDrive for Business (1TB cloud storage)

  • Web and mobile versions of Microsoft Office apps

  • Basic security features

  • Microsoft 365 Business Premium offers additional security features like Microsoft Defender

Microsoft 365 for Enterprise

  • Office 365 E3 and Office 365 E5 with advanced security and compliance tools

  • Enterprise Mobility + Security for remote workforce protection

  • Business Intelligence and AI-driven analytics

  • Microsoft 365 Enterprise plans support unlimited users
Team collaborating using Microsoft 365 apps on multiple devices

Key differences between Microsoft 365 Business and Enterprise

When comparing Microsoft 365 Business vs Enterprise, here are the main differences:

1. User limits and scalability

  • Microsoft 365 Business plans support up to 300 users.

  • Microsoft 365 Enterprise plans have no user limit, making them ideal for larger teams.

If your company is growing, an enterprise plan ensures you won’t need to switch later.

2. Security and compliance

Security is where Enterprise truly stands out. While Microsoft 365 Business offers essential protection, Enterprise is designed for larger organizations with stricter compliance needs.

  • Microsoft 365 Business Premium includes Microsoft Defender for Office 365.

  • Microsoft 365 Enterprise adds Microsoft Advanced Threat Analytics, enterprise mobility, and compliance solutions for industries like finance and healthcare.

3. Microsoft apps and services

Both plans provide essential Microsoft apps, but enterprise offers more advanced features:

  • Microsoft 365 Enterprise includes Power Apps, Microsoft Teams, and 365 E3/E5 security features.

  • Microsoft 365 Business offers web and mobile versions of Microsoft apps but lacks full enterprise security capabilities.

4. Pricing and licensing

When it comes to Microsoft licensing, business plans are cost-effective for smaller teams, while enterprise plans justify their higher price with extra security and compliance tools.

  • Microsoft 365 Business Basic is the most affordable, but it only includes web and mobile versions of Microsoft apps.

  • Microsoft 365 Enterprise plans (E3 & E5) come with enhanced capabilities like enterprise mobility, Microsoft 365 Business Premium, and advanced AI-powered features.
Cloud-based Microsoft 365 solutions for business growth

Which Microsoft 365 plan is best for your business?

Choose Microsoft 365 Business if:

  • You have fewer than 300 users.

  • You don’t need advanced compliance or security.

  • You want a cost-effective Microsoft licensing option.

Choose Microsoft 365 Enterprise if:

  • You need enterprise-level security and compliance.

  • You require Microsoft 365 Enterprise mobility solutions.

  • You want full-featured Microsoft 365 apps for enterprise on up to five PCs or Macs per user.

Final thoughts

The decision between 365 Business and Enterprise depends on your company size, security needs, and budget. If you’re unsure, start with a Microsoft 365 Business plan and upgrade later. However, if you need compliance, advanced security, or unlimited scalability, Enterprise is the smarter long-term investment.

Need expert guidance? AllSafeIT specializes in Microsoft licensing, ensuring you get the best plan for your needs without overspending. Our IT professionals can help you deploy Microsoft 365 apps tailored to your business needs. Contact us today to find the right Microsoft 365 solution for your company.

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Frequently asked questions

What is the difference between Microsoft 365 apps for enterprise and Microsoft 365 apps for business?

Microsoft 365 Enterprise includes advanced security, compliance, and AI-powered tools, while Microsoft 365 Business focuses on core office desktop apps. Business also caters to companies with fewer than 300 users, whereas enterprise also supports larger organizations with complex IT needs.

Which Microsoft 365 business plan is best for my company?

The best business plan depends on your specific business needs. Microsoft 365 Business Premium offers security and compliance tools, while Microsoft 365 Business Basic provides essential Microsoft apps and services at a lower cost.

How does Microsoft 365 enterprise support larger businesses?

Microsoft 365 Enterprise is designed for larger organizations. It offers features such as enterprise mobility, enhanced security, and business intelligence. Microsoft's capabilities in enterprise plans help organizations manage data, devices, and security at scale.

Can I install Microsoft 365 on multiple devices?

Yes, Microsoft Office 365 allows users to install Office on up to five PCs or Macs. This flexibility ensures employees can work from multiple devices using apps like Word, Excel, and Outlook.

How do Microsoft 365 enterprise plans compare in terms of security?

Enterprise plans, such as Office 365 E3 and Office 365 E5, provide enhanced security features, including Microsoft Advanced Threat Analytics and enterprise mobility solutions. These tools help businesses protect sensitive data and comply with industry regulations.

What Microsoft licensing options are available for businesses?

Microsoft licensing resources include a range of options for business and enterprise users. Microsoft licensing ensures organizations can choose the right plan to configure Microsoft 365 apps for their needs, whether for a small business or a large corporation.