What is Microsoft 365 Apps for Business?

Editor’s note: Microsoft is raising prices for all Business licenses April 1. Please refer to this blog post for the new prices.

Microsoft 365 Apps for business is one of the least common licenses we see among small businesses.

It is similar to Business Standard but lacks email and collaboration tools. Apps for business is designed for users who need the core Office applications but don’t need to use email or collaboration tools.

Let’s break down what’s included in the license, how much it costs and who would use it.

What is Included in Apps for Business?

Microsoft 365 Apps for business includes the desktop versions of

• Word
• Excel
• PowerPoint
• Outlook

With Apps for business, you also get 1 TB (terabyte) of personal storage with OneDrive and the ability to add Copilot for Microsoft 365 as an add-on.

It’s important to note that while Apps for business does include the desktop version of Outlook, it doesn’t come with email. If you need email for your employees, you will have to purchase an Exchange Online license or upgrade to one of the other Microsoft 365 licenses (Basic, Standard or Premium).

Here’s a table of what apps and services are included in Apps for business vs. Business Standard.

As you can see, Apps for business is a watered-down version of Business Standard. You get the basic Office apps to create documents, spreadsheets and slideshows, as well as a hefty amount of storage, but it doesn’t come with a custom mailbox, companywide file sharing and other collaboration tools.

How Much Does Apps for Business Cost?

Apps for business has two price points depending on whether you purchase the committed plan ($8.25 per user, per month) or the uncommitted plan ($9.90 per user, per month).

• Committed Plan: $8.25 per user/month (1-year commitment).

• Uncommitted Plan: $9.90 per user/month (cancel anytime).

As a reminder, committed plans require a minimum one-year commitment and can be billed monthly or annually. An uncommitted plan does not require a commitment of a year but is priced higher than the committed plan.

Uncommitted plans are great for seasonal employees, as you can cancel the licenses at any time, whereas a committed license cannot be canceled until the annual renewal date.

Who Would Use Apps for Business?

This license is most commonly purchased for individual employees who don’t need full Microsoft 365 functionality. Examples include:

• Part-time employees who only need Office apps to complete specific tasks.

• Contractors who work on projects but don’t require a company email address or access to collaboration tools.

• Businesses using Google Workspace for email but still need Microsoft apps for specific roles or workflows.

For most small businesses, Apps for business is a niche solution, while Business Standard or Premium better supports the needs of full-time employees and growing teams.

While Apps for business serves a specific purpose, its lack of email and collaboration tools limits its use for most companies. Plans like:

• Business Standard add email hosting, Teams and collaboration tools.

• Business Premium also includes advanced security features like phishing protection, conditional access and data encryption.

• This is why we typically recommend Business Premium for small businesses, as it provides the comprehensive tools and security needed in today’s digital workplace.

Move to the Cloud with Microsoft 365 Apps for Business

Want to see if Apps for business is right for your organization? Contact us to schedule a consultation. We’ll discuss your Microsoft Business license options that are the best for keeping your business running smoothly while increasing productivity, security and profitability.

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