How to find the best Microsoft 365 plan for your needs

Microsoft 365 is the cloud-based subscription model of the popular Office suite. Depending on the use case, various Microsoft 365 plans are available. Here you can find out which variant suits you and what to consider when purchasing.

How to find the right Microsoft 365 plan

The subscription packages for the productivity software Microsoft 365 are offered by Microsoft in the form of plans. The company provides various plans for private users, businesses, educational institutions, and non-profit organizations, which differ significantly in the scope of available applications and features.

All data in this article is accurate as of August 2025.

Microsoft 365 plans for personal use

The range of features in Microsoft 365 depends on the chosen subscription type – the plan. Microsoft offers the following plans for personal use:

Microsoft 365 Personal

The Microsoft 365 Personal plan is designed for individual users who wish to use the productivity software alone. By purchasing the software subscription, you gain access to the following programs:

• Word
• Excel
• PowerPoint
• Defender
• OneNote
• Access
• Publisher
• Forms
• Outlook
• Teams
• Clipchamp

The tools are available as Office Online via the web browser and can be installed as a desktop application on PCs or Macs. There are also corresponding apps for smartphones and tablets. In total, you can install the software on up to five different devices. All created documents can be saved offline. Additionally, the subscription includes 1 TB of OneDrive cloud storage.

Microsoft 365 Family

With the Microsoft 365 Family plan, the company targets families. The features included in the subscription mostly align with those of the Microsoft 365 Personal version, but they are available for up to six users. Additionally, the optional Family Safety service is offered.

All applications can also be installed locally here. Additionally, tablets and smartphones are supported, displaying the productivity software on an interface optimized for mobile devices. Moreover, Microsoft 365 Family provides up to six accounts with 1 TB of OneDrive cloud storage each.

Microsoft 365 plans for business customers

Microsoft also offers subscription models for business customers, which cover the needs of small and medium-sized businesses depending on the plan or are tailored to large enterprises in the form of enterprise plans.

Microsoft 365 Business Basic

If you’re a business owner wanting to buy Microsoft 365 at a low cost, Microsoft 365 Business Basic is worth considering. This entry-level business subscription already includes the essential applications for everyday business tasks:

• Word
• Excel
• PowerPoint
• Teams
• Outlook
• Exchange
• OneDrive
• SharePoint

However, in this plan, you are dependent on web and mobile versions of the programs in the Office suite, as you cannot install the software on your desktop devices. In addition to the applications, you receive a 50 GB mailbox and a custom domain for an email address. Furthermore, there is 1 TB of OneDrive storage.

Microsoft 365 Apps for Business

With this business plan, you receive the programs of the Office suite not only as web or mobile versions but also as downloadable versions for installation on PC or Mac:

• Word
• Excel
• PowerPoint
• Outlook
• OneDrive
• Access
• Publisher

Microsoft’s collaboration tools, such as Teams and SharePoint, are not included in this plan. An email address is also not provided, so Outlook needs to be paired with a different email provider. The 1 TB of OneDrive storage, however, is still part of the package.

Microsoft 365 Business Standard

The plan in the mid-range segment builds on the base version. Therefore, the applications included are almost identical:

• Word
• Excel
• PowerPoint
• Teams
• Outlook
• Exchange
• OneDrive
• SharePoint
• Access
• Publisher
• Clipchamp
• Microsoft Loop

This plan also includes the two programs Access and Publisher. Unlike the basic version, the standard model allows for software installation on a PC or Mac. It also includes your own email domain with a 50 GB mailbox as well as OneDrive with 1 TB of storage.

Microsoft 365 Business Premium

The premium offer for small and medium-sized businesses includes the full suite of software solutions:

• Word
• Excel
• PowerPoint
• Teams
• Outlook
• Exchange
• OneDrive
• SharePoint
• Access
• Publisher
• Clipchamp
• Microsoft Loop
• Microsoft Entra ID
• Intune
• Microsoft Defender
• Microsoft Purview

As can be seen from the additional services, Microsoft 365 Business Premium places a greater emphasis on security measures compared to the more affordable options. This plan also includes 1 TB of cloud storage and a custom email domain with a 50 GB mailbox.

Microsoft 365 Enterprise E3

Subscription options are also available for large corporations: All plans offer a wide range of applications. The Office suite is a standard component. These programs can be used both in the browser as a web version and locally installed. The software can be installed on up to 15 devices per user: 5 desktop computers (PC/Mac), 5 tablets, 5 smartphones.

Also included with Microsoft 365 Enterprise E3 is Windows 11. For OneDrive, each user gets 1 TB of cloud storage. If you set up more than 5 users, the storage increases to 5 TB each. Exceeding this limit allows you to request additional storage from Microsoft support.

Microsoft 365 Enterprise E5

The E5 plan closely resembles the more affordable E3 version. It also allows Office apps to be installed on up to 15 devices, includes Windows 11, and follows the same cloud storage rules. What sets it apart are the additional compliance features introduced with this plan.

The biggest difference is likely the scalable business analytics capability with Power BI. So if you want to make faster, more informed decisions with Microsoft 365, you’ll need to choose this enterprise plan.

Microsoft 365 Enterprise F3

If you want to purchase Microsoft 365 affordably as a corporation, you should choose the F3 plan. Unlike E3 and E5, this subscription model is significantly pared down. It includes the Windows operating system and all Office suite applications, but they cannot be installed on desktop computers. Instead, you must use the applications as web apps in a browser or in a mobile version.

This plan also economizes on storage space: The included mailbox provides only 2 GB, and OneDrive storage is limited to 2 GB per user. Otherwise, compared to E3 and E5, there are limitations in security, compliance, and analytics.

In the F-series, there’s also the F1 plan. This is even more affordable but accordingly has an even smaller feature set. For example, Windows is not included.

Microsoft 365 Apps for Enterprise

Another affordable option for businesses is found in this plan. You have access to the complete Office suite—both as web apps and in installable versions. If you wish to install Word and others, you can do so on up to 15 devices: 5 desktop computers (PC or Mac), 5 smartphones, and 5 tablets.

In this plan, you do not get a personal email mailbox with Exchange. However, it includes OneDrive cloud storage with 1 TB of space. Unfortunately, the communication software Teams is not included in this plan.

Microsoft 365 Plans from IONOS, specifically for SMBs

As a small or medium-sized business, you can also purchase Microsoft 365 Business from IONOS. Here, you get the complete Office package and communication solutions Exchange and Teams. It also includes storage: A 50 GB mailbox and 1 TB of OneDrive storage are included.

As a special service, there is the convenient setup service. You don’t have to worry about configuration. Expert support is also available to you for the long-term with questions and problems—24/7.

At IONOS, you can choose from two plans:

In the basic version, you can easily use the Office applications as a web app in the browser, no matter where you are and what device you are using. The standard plan also offers the software for installation on up to 5 desktop computers. Apps for mobile devices are also available for download in this plan.

Microsoft 365 Business

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Microsoft 365 plans for students and educators

For the education sector, Microsoft offers its own rates. The plans are available for both students and educators, as well as staff of educational institutions. The two options differ in price, but not in features. To book the plans at discounted rates, appropriate proof must be provided.

Microsoft 365 A1

In the smallest, free plan option, you already get access to the essential applications of the Office suite. Other important services include Teams, OneDrive, and Exchange. However, in this plan, everything can only be used online. The applications cannot be installed.

Microsoft 365 A3

With the mid-tier option for the education sector, you have access to essentially the same applications. Additionally, enhanced security and management tools are included. Moreover, with this version, you can also install all applications. Prices are available upon request.

Microsoft 365 A5

The plan with the most comprehensive features includes everything from the A3 package, plus additional learning, compliance, security, and management tools that help you optimize licensing. Prices are also available upon request.

Microsoft 365 plans for non-profit organizations

To support non-profit organizations, Microsoft offers special conditions. These are not separate plans. Instead, business plans are offered at a discounted rate for employees of non-profit organizations.

To be eligible for the discounted prices, you have to meet certain criteria set by Microsoft:

• Your organization must be officially recognized as a non-profit at its place of headquarters.
• The non-profit organization must benefit the local community.
• The organization must also commit to anti-discrimination within its own structures.

Where can you buy Microsoft 365?

You can order the Microsoft 365 product packages directly from Microsoft. Specifically for small and medium-sized businesses, IONOS offers Microsoft 365 business plans with additional benefits:

• European servers: Your data is secured in certified data centers that comply with both European data protection and high security standards.
• 24/7 expert support: If you have questions or issues, you can reach out to support at any time—by phone, chat, or email.
• Setup service: The experts at IONOS set up Microsoft 365 for you so you can start working with the software right away.

Microsoft 365 or Office 365?

In 2020, Microsoft officially rebranded Office 365 as Microsoft 365. Since then, only Microsoft 365 plans have been available for different target groups. In addition to the classic Office apps like Word, Excel, and PowerPoint, Microsoft 365 also includes a wide range of communication and collaboration tools. What can be confusing, however, is that some Office 365 plans are still on the market.