Microsoft’s Office 365 for Business brings its powerful suite of productivity tools to the cloud, positioning itself as a direct competitor to Google Workspace for companies of all sizes. But while the features are promising, the pricing structure can feel overwhelming—especially when choosing from six different plans, each with its own mix of capabilities, user limits, and included applications.
So, what do these Office 365 business plans actually offer? For most subscription tiers, users gain access to full desktop versions of Microsoft’s most widely used applications, including Word, Excel, PowerPoint, Outlook, Publisher, Access, InfoPath, Lync (now Skype for Business), and OneNote. Cloud storage via SkyDrive Pro (now OneDrive for Business) is also included. Importantly, users can install these applications on up to five PCs or Macs, providing flexibility for hybrid work environments and teams that operate across devices.
However, not every tier includes the desktop software. Office 365 Small Business and Enterprise E1 plans only offer web-based versions of apps, which may be sufficient for some—but limiting for businesses needing advanced desktop functionality. Additionally, these two tiers restrict device installations and mobile app access, which could impact productivity for mobile-first teams or those working remotely.
When deciding which Office 365 subscription best fits your organization, user capacity becomes a key differentiator. Here's a breakdown of the maximum user thresholds across the most common business tiers:
- Office 365 Small Business / Small Business Premium: Up to 25 users
- Office 365 Midsize Business: Up to 300 users
- Office 365 Enterprise Plans (E1 and E3): Unlimited users
So, how do you choose the right Office 365 plan? Start by asking: “How many users do we need to support, and what level of application access do we require?” If your team needs robust desktop software, mobile app compatibility, and cloud-based collaboration tools, you’ll likely need to look beyond the entry-level plans. Enterprise plans offer more scalability and feature-rich environments, ideal for growing businesses and distributed teams.
While Microsoft’s cloud-based productivity platform offers substantial advantages—from seamless document collaboration to enterprise-grade security—the complexity of Office 365 pricing can be a barrier. Before committing, businesses should carefully compare the capabilities of each tier, weigh current and future user requirements, and ensure that they’re getting the tools they actually need without overpaying.
For organizations evaluating Office 365 vs Google Workspace, understanding the nuances in user limits, deployment models, and included services is essential for making an informed decision.