Octobits Blog – For small and medium-sized businesses (SMBs) looking to harness the power of Microsoft’s productivity and security suite, the Business Premium is a better choice than the Enterprise suite.
Certainly, the main reason is cost. That’s why we need to break down Microsoft 365 Premium price as a first step to get a balance.
This way, we know whether the pricing structure, features, and potential cost optimisation strategies match your business needs and budget.
Now let’s get into the details, shall we?!
What is Microsoft 365 Premium?
Microsoft 365 Business Premium is the complete package for businesses.
It’s got all the productivity tools, collaboration platforms, and advanced security features you could possibly need.
It seamlessly integrates familiar Office apps like Word, Excel, and PowerPoint with advanced security features, device management capabilities, and cloud services such as Exchange Online, SharePoint, and Microsoft Teams.
This plan is ideal for businesses with up to 300 users.
It offers everything you need to keep your data safe, including advanced cyber threat protection, identity management, and device security.
And with 1 TB of OneDrive storage per user, you’ll have all the file storage and collaboration you could want.
For reference and another insight, you can read “Microsoft 365 Price Increase: How Much & Impact on Business“
Key Features
Microsoft 365 Premium is the definitive solution for modern businesses, with a comprehensive suite of features that cater to their diverse needs.
You get full access to the entire Office suite, on both desktop and mobile.
This flexibility allows employees to work seamlessly from any location and on any device, driving productivity and collaboration.
Microsoft 365 Premium goes beyond productivity tools to prioritise security with the inclusion of Microsoft Defender for Office 365.
This advanced security feature safeguards businesses against sophisticated cyber threats like phishing and malware, and guarantees that sensitive data remains protected.
The plan also effectively addresses the challenges of managing a mobile workforce through Microsoft Intune.
Microsoft 365 Premium is all about collaboration, and that’s why it includes Microsoft Teams.
This platform is the central hub for communication and teamwork, facilitating chat, online meetings, and file sharing.
With Exchange Online and a generous 50 GB mailbox per user, communication is streamlined and important emails and calendar events are readily accessible.
Microsoft 365 Premium Price Details
Microsoft 365 Premium offers unbeatable value for money, especially when you consider the comprehensive set of features it provides.
The standard price is $22.00 per user per month for an annual subscription.
However, businesses who prefer a monthly commitment will be charged slightly more at $26.40 per user per month.
Furthermore, the Microsoft 365 Enterprise Licensing Guide clearly states that the cost structure can be affected by factors such as the size of the organisation, the need for additional security features, and regional variations in pricing.
Australian businesses must consider these factors, especially with currency fluctuations and the need for localised support.
Comparison with Other Microsoft 365 Plans
Microsoft 365 Premium offers a balanced blend of essential productivity tools and advanced security features.
This makes it an ideal solution for organisations that have outgrown basic plans but aren’t quite ready for the complexity and cost of enterprise-level solutions.
The first thing you’ll notice when comparing Microsoft 365 Business Standard to the Premium version is the price.
Business Standard is definitely more budget-friendly, so it’s a great choice for businesses that just want the standard productivity tools.
The downside is you lose some key features which could be vital for businesses worried about security and device management.
Business Standard doesn’t include some of the more advanced security features you’ll find in Microsoft 365 Premium.
For example, Microsoft Defender, which is essential for protecting against modern cyber threats, is only available in the Premium version.
Plus, the Premium version comes with full device management tools through Microsoft Intune. This feature isn’t available in the Standard plan.
On the other hand, when you compare Premium to Microsoft 365 E3, which is aimed at larger businesses, it’s clear why Premium is a better, more focused option for SMBs.
Microsoft 365 E3 has a lot of enterprise-level features that can be a bit overwhelming for smaller businesses.
These features are great, but they might not be what an SMB needs right now, which could lead to them not being used or making things more complicated than they need to be.
On the other hand, Premium offers the best of both worlds. It gives you all the security and management tools you need without the hassle of enterprise-level features you might not use.
It gives SMBs the key features they need, like advanced security and device management, while still being easy to use and cost-effective.
Read “Microsoft 365 E5 Price: Features, Models, & Factors Affecting“ for a clear and concise reference on this topic.
Factors Affecting Pricing
One of the most significant factors is the number of users. As Microsoft 365 Premium is priced per user, the total cost goes up in line with the size of the company.
For smaller businesses with fewer users, the costs are still pretty manageable.
But as the number of users gets close to the 300-user limit, businesses might need to look at more scalable enterprise solutions like Microsoft 365 E3 or E5.
Another thing to think about is how long you’re committing to the contract.
If you go for an annual subscription, you’ll save a lot more money than if you were to pay month by month.
There are discounts of up to 16% for businesses that sign up for an annual commitment, which makes it a smart move for companies looking to save money on their IT budgets in the long run.
The final cost of Microsoft 365 Premium is also affected by things like customisation and add-ons.
The standard package has a lot of great features, but businesses often need to tweak it to fit their particular needs.
If you add on extras like Copilot for Microsoft 365 or advanced security and compliance tools, it’ll cost you more.
Also, prices for Microsoft 365 Premium can vary from region to region.
Things like currency exchange rates and local economic conditions can mean prices vary from region to region.
Australian businesses need to be aware of these differences and think about them when they’re planning how much they’re going to spend on IT.
Cost Optimization Strategies
As we said before, going for yearly subscriptions instead of monthly ones can mean big savings because of the discounted pricing for each user.
So, the best thing to do is bundle Microsoft 365 Premium with other Microsoft services, such as Dynamics 365.
This can get you even bigger discounts and create a more streamlined and integrated IT environment.
It’s also a great idea to regularly check your user licence audits to make sure you’re getting the best value for money.
If you make sure all your licences are being used and that you’re not wasting resources, you can avoid unnecessary costs.
On top of all that, using a license management platform like Octobits can be a great way to save money.
Octobits gives you a central place to manage all your IT services, including Microsoft 365.
This makes it easy to keep track of how licences are being used, find out which ones aren’t being used much, and manage your bills more easily.
The platform’s reporting tools can also give you a good idea of how you’re using Microsoft 365.
That way, you can make smart choices about how to use your licences and where you can save money.
With all these features, Octobits is ready for you, free of charge, until December 2024.
It’s certainly an interesting idea, isn’t it? But let’s not forget what we humans are capable of.
So it’s also worth investing in comprehensive training and adoption programmes to get the value of your Microsoft 365 Premium subscription.
If your employees know what they’re doing with all the different features and tools in the suite, you can get the most out of it and avoid paying for things you don’t need.
In Closing
Let’s be real, you need to know what your decision will cost you and what you can do to make it more cost-effective.
If you take the time to think about what your business needs, what’s involved, and how you can save money, you can make sure your investment in Microsoft 365 Premium is worth it and doesn’t break the bank.
That’s why Octobits gives you the data you need to find the right balance between what you need and what you can afford.
Ultimately, it’s about giving your business the tools it needs to succeed in the digital age while keeping an eye on the Microsoft 365 Premium price.
