Microsoft 365 Business Vs. Microsoft 365 Enterprise: Which One Is Better? 

Migrating to the cloud with Microsoft Office 365 can be a big step toward success for companies. Hence, choosing the appropriate and relevant plan according to the business requirements is extremely important.

Microsoft, a longstanding leader in software solutions, offers two comprehensive suites: Microsoft 365 Business and Microsoft 365 Enterprise. Both are designed to empower businesses with various applications and services, yet they cater to different scales and needs.

office 365 business vs enterprise

Overview of Microsoft 365 Business

Microsoft 365 Business is tailored for small to medium-sized businesses (SMBs) and provides a robust suite of productivity, collaboration tools, and security features. It integrates familiar Office applications with robust cloud services, all managed through a simplified admin console.

Overview of Microsoft 365 Enterprise

Microsoft 365 Enterprise is designed for larger organizations with complex needs, offering advanced capabilities, customization options, and enhanced security features. It provides a comprehensive solution for productivity, collaboration, and intelligence tailored to the demands of enterprise-scale operations.

This blog will compare the two major Microsoft 365 plans—Business and Enterprise.

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Comparing Microsoft 365 Business and Microsoft 365 Enterprise

If you’re a business, Microsoft 365 offers two packages: Microsoft 365 Business (for small organizations) and Microsoft 365 Enterprise (for large organizations). Despite these services’ basic functionality, Microsoft 365 Business and Microsoft 365 Enterprise have some significant and minor distinctions.

Here are some main differences between Microsoft 365 Business and Microsoft 365 (E1, E3, E5) that should be considered before making a definite choice:


Each user in Microsoft 365 Business receives 1 TB of OneDrive storage for secure file storage, sharing, and synchronization across devices. This storage capacity is generous for SMBs and supports their basic data needs.

Similarly, Microsoft 365 Enterprise provides ample OneDrive storage. However, it goes further with additional storage options and enterprise-grade solutions for managing large volumes of data, ideal for organizations with extensive data requirements.

Number of Users

Microsoft 365 Business is designed for up to 300 users, while Microsoft 365 Enterprise offers unlimited users. Hence, the Business plan is designed for small and growing businesses, whereas the Enterprise plan is appropriate for larger firms.

Device Management

In Microsoft 365 Business for device management, Microsoft 365 Business offers Microsoft Intune, allowing organizations to manage devices with simplified controls. It includes application deployment, security policy enforcement, and remote wipe capabilities for lost or stolen devices, suitable for SMBs with essential device management needs.

In the Microsoft 365 Enterprise version, Enterprise Mobility + Security (EMS) provides a comprehensive suite of tools, including Microsoft Azure Active Directory Premium and Intune. It offers extensive mobile device management (MDM) capabilities, identity and access management, and information protection across various devices, ideal for enterprises with diverse device ecosystems and complex security requirements.

Customization and Integration

While Microsoft 365 Business offers a solid suite of out-of-the-box tools, its customization and integration options are more limited compared to the enterprise version. SMBs can benefit from basic customization features but may find limitations when it comes to extensive integrations and development.

Microsoft 365 Enterprise provides extensive customization and integration capabilities through Microsoft Graph APIs and the Power Platform. Enterprises can build custom apps, workflows, and integrations, tailoring the suite to their specific business processes and needs.

Security and Threat Protection

Any firm, small or large, would want its data and information to be safe and secure. Regarding security, there is a big difference between the features offered by the Business and Enterprise plans.

While Microsoft 365 business comes only with Advanced Threat Protection (ATP), the Enterprise plan offers much more, like Microsoft Advanced Threat Analytics, Device Guard, Credential Guard, App Locker, Enterprise Data Protection, etc.

Office Applications

Both suites include the latest Word, Excel, PowerPoint, Outlook, and OneNote versions for desktop and web use. However, in Microsoft 365 Business, users can install these applications on up to five PCs or Macs, five tablets, and five phones per user. Similar to Microsoft 365 Business, Microsoft 365 Enterprise provides the core Office applications. Additionally, it offers advanced services such as Power BI Pro, Power Automate, and Power Apps, empowering enterprises with robust data analysis and business process automation tools.


The main difference between the two that every business will consider before purchasing Microsoft 365 is the cost of the two. While the basic features of both Microsoft 365 Business and Microsoft 365 Enterprise remain the same, the former comes at a lower price.

The Business plan would be the right option for anyone who wishes to use just the basic features of Microsoft 365. The starting price for Business 365 is $6, including a range of productivity tools such as Word, Excel, PowerPoint, and Outlook, along with cloud storage and collaboration features.

On the other hand, Enterprise offers advanced security, compliance tools, analytics, and all the features included in Business 365. The starting price for Enterprise is $12, making it a more comprehensive and robust solution for larger organizations with complex needs.

Also Read: Microsoft 365 Hosting vs. On-Premise: Difference Explained

What Are The Additional Features Of Microsoft Enterprise 365?

Advanced Services

Microsoft Enterprise 365 offers advanced services such as Power BI Pro, Power Automate, and Power Apps, providing enterprises with extensive data analysis and automation capabilities.

Enhanced Collaboration Tools

Microsoft Enterprise 365 has enhanced collaboration tools such as SharePoint Online and Yammer that work alongside Microsoft Teams to enable seamless teamwork at scale, with advanced analytics and integration features.

Advanced Security and Compliance

Microsoft Enterprise 365 provides advanced security and compliance features such as Advanced Threat Protection (ATP), Azure Information Protection, and Microsoft Cloud App Security, which offer enterprise-level threat detection, information protection, and comprehensive compliance management.

Extensive Customization Options

Microsoft Enterprise 365 comes with extensive customization options through Microsoft Graph APIs and Power Platform, which allow the development of custom apps, workflows, and integrations tailored to specific business processes and requirements.

These features in Microsoft 365 Enterprise provide a comprehensive suite of tools and services tailored to the needs of large-scale organizations, offering advanced capabilities in data analysis, collaboration, security, compliance, and customization.

Factors to Consider When Choosing between Microsoft 365 Business and Microsoft 365 Enterprise

Organization Size:

  • Microsoft 365 Business for SMBs (<300 users).
  • Microsoft 365 Enterprise for larger enterprises (>300 users).

Security and Compliance Needs:

  • Microsoft 365 Business offers built-in security features.
  • Microsoft 365 Enterprise provides advanced security tools and compliance management.

Collaboration and Communication:

  • Both suites offer collaboration tools, with Microsoft 365 Enterprise providing more advanced features.

Customization and Integration:

  • Microsoft 365 Enterprise offers extensive customization and integration options.

Budget and Pricing:

  • Microsoft 365 Business is generally more cost-effective for SMBs.
  • Microsoft 365 Enterprise involves higher costs but provides more comprehensive features.
  • Microsoft 365 Business caters to smaller businesses with essential tools for productivity, collaboration, and security, while Microsoft 365 Enterprise is designed for larger enterprises with advanced needs in customization, security, compliance, and collaboration at scale.

Which One Is Right for You?

When deciding between Microsoft 365 Business and Enterprise, it’s essential to identify your business requirements and the features you’re looking for.

These are a few questions one must ask before making a choice.

Both the plans (Business and Enterprise) have their own set of features and benefits, each of which suits a particular type of business.

It is critical to thoroughly understand both strategies to make an informed choice. Contact us at any moment for a customized recommendation. We assist you in combining all of your decision-making criteria across all Microsoft 365 versions and finding the best match for you. There is a lot to consider, so contact us if you have any queries.

Compare the Microsoft Office 365 plans and pricing of all products before making any decision.

About Julie Watson

Julie is a dynamic professional with over 16 years of rich experience as a VDI and Application Hosting expert. At Ace Cloud Hosting, she humanizes disruptive and emerging remote working trends to help leaders discover new and better possibilities for digital transformation and innovation by using cloud solutions with an enterprise-class security approach. Beyond work, Julie is a passionate surfer.
On the weekend, you will find her hanging out with her family or surfing around the North Shore of Oahu.

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