Why We Recommend Microsoft 365 Business Premium Over Business Standard and Entra ID P1

Choosing the right Microsoft 365 Business plan for your organization is imperative. You want to secure your sensitive data without overspending on features you don’t need.

At first glance, choosing Microsoft 365 Business Standard with the Entra ID Plan 1 add-on ($18.50/user/month) instead of Microsoft 365 Business Premium ($22/user/month) might seem like a way to save a few dollars.

After all, the bundle includes many of the same features and allows you to save $3.50 per user, per month, which can add up for an organization with a few hundred employees.

But for most organizations, the added security, simplified management and readiness for a cloud-first future make Business Premium the smarter choice.

Key Differences at a Glance

Why Business Premium is the Better Choice

1. Advanced security you really need Business Premium includes essential security features that aren’t available in Business Standard with Entra ID Plan 1, such as:

• Phishing Protection: Safe Links, Safe Attachments and spam filters help block harmful emails before they reach your team.
• Data Protection & Compliance: Azure Information Protection ensures sensitive files are encrypted and accessible only to authorized users — inside or outside your organization.
• Device Security & Management: Intune lets you control security policies on company and personal devices, enforcing protections like screen lock and data encryption.

Without these tools, your business is more vulnerable to phishing, data leaks and security breaches.

2. Essential for a cloud-first business Business Premium is a must if your organization is fully cloud-based or plans to move away from on-premises servers. Intune (included with Business Premium) takes over critical IT functions that a traditional domain controller would handle, such as:

• Enforcing security policies across all devices
• Ensuring compliance with remote work policies
• Protecting company data on personal laptops and mobile devices

Without Intune, managing and securing devices in a cloud-only environment becomes difficult — putting data and compliance at risk.

3. No more licensing headaches Mixing Business Premium and Business Standard licenses can create confusion. Every time you hire a new employee, change a role or adjust responsibilities, you’ll need to clarify license assignments with your managed service provider (MSP).

Using only Business Premium eliminates this hassle, ensuring every user has the same level of security and access without delays or miscommunication. For growing organizations, simplicity pays off.

4. Built-in threat detection & response with defender for business Defender for Business, included with Business Premium, adds enterprise-grade threat protection that Business Standard + Entra ID P1 lacks. It helps detect and respond to cybersecurity threats before they cause damage. Key protections include:

• Next-gen antivirus & endpoint detection (EDR): Proactively blocks malware, ransomware and other attacks.

• Threat & vulnerability management: Identifies security risks and provides recommendations to strengthen protection.

• Automated investigation & response (AIR): Uses AI-driven tools to analyze and contain threats before they spread.

• Ransomware protection: Detects and mitigates ransomware attacks in real time.

While both options provide identity and access management, Business Premium adds essential tools for endpoint security, data protection, device management, and detection and response tools. What is Entra ID Plan 1? Entra allows an administrator to set restrictions for who is allowed to access what data and how they can access that data.

Arguably, the most beneficial aspect of Entra is Conditional Access, which allows your IT team or MSP to create rules that automatically enforce your organization’s policies.

As an example, if you only want your employees to access company data on registered devices — such as a work computer or smartphone — you can block them from logging in on unregistered devices, such as a personal computer or tablet.

Furthermore, you can force your employees to log in to their Microsoft 365 accounts using multifactor authentication or enforce single sign-on, which will encourage your employees to create more secure passwords when they only have one to remember.

Entra ID also includes self-service password reset, which allows your employees to change or reset their password with no administrator or help desk assistance. This reduces calls or emails to the help desk and loss of productivity when employees get locked out of their accounts.

Business Premium: Protection Now With Growth in Mind

Choosing Business Standard with Entra ID Plan 1 might seem cost-effective upfront, but Business Premium delivers the security your business should already have, ensures you’re ready for a full cloud environment and eliminates the complexities of managing mixed licenses.

The ability to apply security policies with Intune, safeguard your sensitive information with Azure Information Protection and defend against malicious emails with phishing protection are why we recommend Business Premium to all our clients.

If you want detailed information on all of the features that come with Business Standard, Business Premium, Entra ID P1 and Defender for Business, click the corresponding links. You also can compare Business Standard to Business Premium.

Business IT Security from Hungerford

Need help determining the best licensing fit for your organization? Contact us today to ensure your business is secure, efficient and prepared for the future.

Stay updated! Get tips and insights delivered to your inbox weekly by subscribing to our newsletter.