Microsoft Business Email (Office 365 Email) Pricing & Plans of 2024

January 31, 2024
10 Minutes
Modified on:
January 31, 2024
Written by:
Manali Kulkarni
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What is Microsoft Business Email

Microsoft Business Email refers to the email service provided as part of Microsoft 365 (formerly Office 365) for business users. It's a professional email hosting service that offers custom email domains (like, and it is typically bundled with other Microsoft productivity tools and services such as Word, Excel, PowerPoint, and Teams. Microsoft Business Email is designed to meet the needs of businesses of all sizes, offering features like more extensive mailbox storage, enhanced security measures, and advanced administrative controls.

Microsoft Business Email vs Outlook

Microsoft Business Email is a hosted email service for businesses, part of the Microsoft 365 suite, offering professional email capabilities. Outlook is an email client application that can access and manage emails from various services, including Microsoft Business Email.

Microsoft Business Email:

  • Nature of Service: 

Microsoft Business Email is a specialized email hosting service designed as part of the Microsoft 365 suite for business use. This service goes beyond just email; it's a comprehensive solution that includes various productivity and collaboration tools essential for business operations.

  • Primary Users: 

Its primary audience includes businesses of all sizes, from small startups to large corporations. The service caters to organizations seeking a reliable, scalable, and secure email solution that can grow with their business.

  • Features: 

Microsoft Business Email provides custom email domains, allowing businesses to use their brand (like, which helps establish a professional presence. It offers significantly larger mailbox storage than standard email services, advanced security features to protect sensitive information, and administrative controls for managing users and data.

  • Integration:

As an integral part of Microsoft 365, it seamlessly integrates with other Microsoft tools such as Word for document creation, Excel for spreadsheets, PowerPoint for presentations, and Teams for communication and collaboration, creating a unified workflow.

  • Purpose: 

The service is tailored to meet the diverse requirements of businesses. This includes ensuring data security, providing reliable communication tools, and offering integrated solutions that enhance productivity and collaboration within a professional environment.


  • Nature of Service: 

Outlook is an email client software part of the Microsoft Office suite. It's a program installed on a computer or accessed online that allows users to manage their email accounts. Outlook is designed to work with various email services, providing a centralized interface for email management.

  • Primary Users: 

Outlook is versatile and used by many users, including individual professionals, students, and business personnel. Its flexibility and comprehensive features make it suitable for personal and professional use.

  • Features: 

Critical features of Outlook include managing multiple email accounts from different providers in one place, organizing and scheduling appointments using the calendar, keeping track of tasks and to-do lists, and storing contact information. It's known for its robust organization capabilities, such as categorizing emails, setting up rules, and filtering spam.

  • Integration: 

Outlook is compatible with various email services, not just Microsoft’s own. It can access emails from Microsoft Business Email, (Microsoft’s free email service), Gmail, Yahoo Mail, and other providers. It acts as a universal tool for email management.

  • Purpose: 

The primary role of Outlook is to provide a user-friendly platform for accessing and managing emails and other personal information management tools. It's not an email service provider but a powerful tool for interacting with one's email accounts, streamlining communication, and organizing daily tasks and schedules.

In essence, while Microsoft Business Email and Outlook are both part of Microsoft's suite of services, they serve different purposes. Microsoft Business Email is a hosted email service tailored for businesses, providing professional email capabilities and other productivity tools. In contrast, Outlook is an email client that helps users access and manage their email accounts, irrespective of their email service.

Microsoft Business Email (Office 365 Email) Pricing & Plans 2024

Feature / Plan Basic Plan Standard Plan Premium Plan
Monthly Price (approximate) Yes ($5/user) Yes ($12.50/user) Yes ($20/user)
Custom Email Domain Yes Yes Yes
Email Hosting with 50 GB Mailbox Yes Yes Yes
Web and Mobile Versions of Office Apps Yes (limited) Yes Yes
Desktop Versions of Office Apps No Yes Yes
File Storage and Sharing Yes (1 TB/user) Yes (1 TB/user) Yes (1 TB/user)
Microsoft Teams Yes Yes Yes
Social Networking with Yammer Yes Yes Yes
Exchange Online Archiving No Yes Yes
Advanced Security No No Yes
Advanced Compliance Tools No No Yes
PC and Mobile Device Management No No Yes

1) Basic Plan: $ 5 Per User

  • Monthly Price (approximate): Around $5 per user.
  • Suitable For: This plan is ideal for small businesses or startups looking for basic email and cloud services.
  • Key Features: It includes custom email domain hosting, essential for professional branding. Users can access web and mobile versions of Office apps like Word, Excel, and PowerPoint, but not the desktop versions. It offers 1 TB of cloud storage per user through OneDrive, which is substantial for file storage and sharing. Microsoft Teams is included, facilitating collaboration and communication within the team.
  • Why Choose This?: Small businesses that need a professional email service and basic collaboration tools without a significant investment in IT infrastructure would find the Basic Plan adequate. It's also a good starting point for businesses just beginning to establish their digital presence.

2) Standard Plan: $12.50

  • Monthly Price (approximate): About $12.50 per user.
  • Suitable For: Medium-sized businesses or small businesses looking to scale up their operations.
  • Key Features: This plan includes everything in the Basic Plan, plus desktop versions of Office apps with premium features. It's a significant upgrade for businesses that require more advanced functionality in their office applications. It also offers additional security and compliance tools, making it a more robust option for businesses handling sensitive data.
  • Why Choose This?: Businesses that require more comprehensive tools for document creation, data analysis, and presentations, along with enhanced security features, would benefit from the Standard Plan. It's particularly suitable for companies that have outgrown the Basic Plan and need more advanced office solutions.

3) Premium Plan: $20 Per User

  • Monthly Price (approximate): Around $20 per user.
  • Suitable for: Larger or mid-sized businesses with advanced IT needs.
  • Key Features: Includes all features of the Standard Plan, along with advanced security measures like protection against cyber threats, data leak prevention, and advanced compliance tools. It also includes PC and mobile device management capabilities, crucial for businesses with a large workforce and multiple devices.
  • Why Choose This?: The Premium Plan is designed for businesses prioritizing data security and IT management. It's ideal for larger companies or industries where data security and compliance are paramount. The advanced IT solutions offered in this plan help manage a broader IT infrastructure efficiently.

Microsoft Business Email Alternatives

Exploring alternatives to Microsoft Business Email can benefit businesses seeking different features or price points. Here are the top five options, including Neo Email, each with a brief overview of their pricing, features, and unique advantages:

  1. Neo
  • Pricing: Starts at $1.25/ Month for Starter Plan
  • Features: Typically includes features like One one-page website, Free Domain, AI-powered email writer, Email Campaigns, integration with other business tools, advanced search, and organization capabilities.
  • Why Choose Over Microsoft Business Email?: Neo Email often stands out for its AI-driven features, making email management more efficient. It's suitable for businesses looking for innovative, AI-enhanced email solutions.
  1. FastMail
  • Pricing: Plans for the Basic plan start at $3 per user/month.
  • Features: Custom domain emails, no tracking or ads, user-friendly interface, import tool for easy migration, and excellent customer support.
  • Why Choose Over Microsoft Business Email?: FastMail is a straightforward, privacy-focused email service. It appeals to users who want a simple, no-frills email experience with a strong emphasis on privacy and user support.
  1. Google Workspace (formerly G Suite)
  • Pricing: Starts around $6 per user/month for the Business Starter plan.
  • Features: Includes Gmail with custom email, Google Drive for storage, Google Docs for collaborative document editing, and Google Meet for video conferencing.
  • Why Choose Over Microsoft Business Email?: Google Workspace is known for its simplicity and seamless integration with other Google services. It’s an excellent choice for businesses already reliant on Google's ecosystem and those who prefer a more straightforward, web-based approach to office productivity.
  1. Zoho Mail
  • Pricing: Offers a free plan with limited features; paid plans start around $1 per user/month for Mail Lite.
  • Features: Custom domain email, extensive control panel, integration with Zoho CRM and other apps, excellent privacy and security features.
  • Why Choose Over Microsoft Business Email?: Zoho Mail is highly cost-effective, especially for startups and small businesses. It offers a straightforward, ad-free user experience and greater control over privacy, making it a good choice for businesses prioritizing budget and data privacy.
  1. ProtonMail
  • Pricing: Free with basic features; paid plans start at €5 per month for ProtonMail Plus.
  • Features: End-to-end encryption, self-destructing emails, no personal information required for account creation, open-source code.
  • Why Choose Over Microsoft Business Email?: ProtonMail is the go-to choice for businesses that prioritize security and privacy above all else. Its end-to-end encryption ensures that only the sender and receiver can read the contents of an email.

Each of these alternatives offers unique advantages. Whether it's the integrated ecosystem of Google Workspace, the budget-friendliness of Zoho Mail, the unparalleled security of ProtonMail, the easy setup of Neo, or the privacy focus of FastMail, businesses have a variety of options to consider based on their specific needs and preferences.


How do I create a Microsoft Business Email account?

Answer: To create a Microsoft Business Email account, purchase a Microsoft 365 for Business subscription. After subscribing, log in to the Microsoft 365 admin center, go to 'Setup,' and follow the prompts to set up your domain and create email accounts for your team. Microsoft can help you acquire one during setup if you need a domain.

Can I migrate my existing email to Microsoft Business Email?

Answer: Yes, you can migrate your existing email, contacts, and calendar data from other email systems to Microsoft Business Email. Depending on your current email system, Microsoft provides several migration tools and detailed guides to assist with this process.

Is Microsoft Business Email secure?

Answer: Microsoft Business Email is designed with robust security features, including spam filtering, malware protection, and data loss prevention. Additionally, it offers advanced security features like two-factor authentication (2FA) and encrypted email options.

Can I access Microsoft Business Email on mobile devices?

Answer: Microsoft Business Email can be accessed through the Outlook mobile app, which is available for iOS and Android. This app syncs your email, calendar, and contacts across all devices.

Does Microsoft Business Email include calendar and contacts management?

Answer: Microsoft Business Email includes a fully integrated calendar and contacts management system accessed through the Outlook application or web interface.

Can I use my domain name with Microsoft Business Email?

Answer: Absolutely. Microsoft Business Email allows you to use your domain name to create custom email addresses (like

Are there any collaboration tools included in Microsoft Business Email?

Answer: Microsoft Business Email is part of the Microsoft 365 suite, which includes Microsoft Teams. Teams offer chat, video conferencing, and collaboration tools that integrate seamlessly with your email and calendar.

How is spam and phishing protection managed in Microsoft Business Email?

Answer: Microsoft Business Email uses advanced filters and security protocols to protect against spam and phishing attempts. These tools are continuously updated to respond to new threats.

Can I recover deleted emails in Microsoft Business Email?

Answer: Yes, Microsoft Business Email allows you to recover deleted emails. Deleted items can typically be restored from the 'Deleted Items' folder within a set period, and administrators have additional options for email recovery.

Can I integrate third-party apps with Microsoft Business Email?

Answer: Microsoft Business Email supports integration with a wide range of third-party apps and services, enhancing its functionality and allowing for a more customized experience.


Please note that the information provided in this blog is based on the data available as of the latest update and is subject to change. Email service providers frequently update their plans and features to stay competitive and meet the evolving needs of businesses. Therefore, we strongly recommend visiting the official websites of the respective email services for the most current and accurate information before making any decisions. This blog is intended to provide a general overview and should not be the sole basis for your choice.

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