IT & Cloud
What is Microsoft 365 Business Premium?
Microsoft 365 Business Premium is a licensing plan for organisations with up to 300 users that combines the Office applications and cloud services of Business Standard with a set of security and device management tools — Microsoft Defender for Office 365 Plan 1, Defender for Business, Microsoft Intune, Entra ID Plan 1 and Azure Information Protection.
At a glance
- Seat limit
- 300 users
- Includes
- Everything in Business Standard, plus security and device management
- Email security
- Defender for Office 365 Plan 1
- Endpoint protection
- Defender for Business (EDR)
- Device management
- Microsoft Intune
- Identity
- Entra ID Plan 1, including Conditional Access
What it adds over Business Standard
Business Standard provides the productivity layer: desktop and web Office applications, Exchange email, Teams, SharePoint and OneDrive. Business Premium keeps all of that and adds the security and management components most SMEs would otherwise buy separately.
- Microsoft Defender for Office 365 Plan 1 — Safe Links, Safe Attachments and anti-phishing policies applied to email and Teams.
- Microsoft Defender for Business — endpoint detection and response across Windows, macOS, iOS and Android.
- Microsoft Intune — device enrolment, configuration policies, compliance rules and remote wipe.
- Entra ID Plan 1 — Conditional Access, self-service password reset and security defaults beyond basic MFA.
- Azure Information Protection — sensitivity labelling and encryption for documents and email.
Licensing constraints
Business Premium is capped at 300 seats per organisation. Beyond that, the equivalent capability is assembled from Microsoft 365 E3 or E5 plus add-ons, at materially higher cost per user.
The licence entitles an organisation to the tooling; it does not configure it. A tenant can hold full Business Premium licensing while Conditional Access, Intune compliance policies and Defender policies remain in default or unconfigured states, which is a common finding during security assessments.
Relationship to certification
Correctly configured, Business Premium can satisfy much of what Cyber Essentials asks for: multi-factor authentication through Entra ID, malware protection through Defender for Business, secure configuration and update management through Intune policies, and account separation through role assignment.
The licence alone is not evidence of compliance. Assessors examine the configuration state of the tenant and the devices, not the subscription invoice.
Sources
The definitions and figures on this page are drawn from the primary sources below. Where guidance changes, the source takes precedence over our summary of it.
- Microsoft 365 Business Premium service description — Microsoft
- Microsoft Defender for Business documentation — Microsoft Learn
- Using Microsoft 365 securely — National Cyber Security Centre
FAQ
What is Microsoft 365 Business Premium — common questions
Direct answers to the questions asked most often about this topic.
Is Microsoft 365 Business Premium worth the extra cost over Business Standard?
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For most organisations that would otherwise buy separate antivirus, email security and device management products, Business Premium is cheaper than assembling the equivalent stack from multiple vendors, and the components are integrated by default. The difference in list price between Standard and Premium is roughly double per user per month. The value depends entirely on deployment: an organisation that licenses Premium and leaves Intune unconfigured, Conditional Access disabled and Defender in default state is paying for capability it is not receiving. Budget for configuration and ongoing management alongside the licence itself.
Does Business Premium include everything needed for Cyber Essentials?
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It includes the tooling required to meet most of the five control areas, but tooling is not certification. Multi-factor authentication, malware protection, secure configuration and update management can all be delivered through Entra ID, Defender for Business and Intune. What the licence does not do is enforce those settings automatically, cover devices that are not enrolled, or address firewalls on non-Microsoft infrastructure and unsupported software elsewhere in the estate. Certification depends on how the tenant and devices are actually configured and evidenced, which is what an assessor examines.
What happens if an organisation exceeds 300 users?
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Business Premium cannot be assigned beyond 300 seats within a single tenant. Organisations approaching that limit generally migrate to Microsoft 365 E3, adding Defender for Endpoint Plan 2 or E5 Security to restore the equivalent security capability, which increases cost per user significantly. Mixed licensing is possible during a transition — some users on Business Premium and others on E3 — provided the total Business Premium assignments stay within the cap. Planning the move before hitting the limit avoids a rushed migration, since feature parity requires deliberate add-on selection rather than a straight upgrade.
Does Business Premium back up Microsoft 365 data?
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No, and this is a widespread misunderstanding. Microsoft operates the service and provides resilience against infrastructure failure, but the customer remains responsible for their own data. Native retention features — the Recycle Bin, retention policies, litigation hold and Exchange recoverable items — provide limited protection over limited periods, and they are not designed for point-in-time restoration after ransomware, malicious deletion or a departed employee clearing a mailbox. Organisations that need reliable recovery of email, SharePoint, OneDrive and Teams data typically add a dedicated third-party backup product.
Does Defender for Business replace traditional antivirus?
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Defender for Business is an endpoint detection and response product built on Microsoft Defender Antivirus, so it provides both signature-based protection and behavioural detection with investigation and response capability. For most SMEs it replaces a conventional standalone antivirus product rather than sitting alongside one — running two real-time protection engines on the same device commonly causes conflicts and performance problems. What it does not include is human monitoring: alerts are generated but no one reviews them out of hours unless the organisation adds a managed detection and response service.

