Microsoft Teams Essentials and Microsoft 365 Business Basic are offered for commercial use and are intended for business customers. This article helps you choose which subscription option best meets your business needs and explains the key differences between them.
Choosing the right business subscription
When you want to buy Microsoft Teams premium meeting and call functionality, you have two similarly priced options for how to get started:
- Microsoft Teams Essentials.
- Microsoft 365 Business Basic.
Evaluate the following three key factors to choose which best meets your needs:
- Which apps and services do you want?
- How much technical skill do you have?
- What do you need to consider about data ownership and intellectual property rights?
See the following table for sign-up options and the services that apply to your selection.
| Factors |
Option 1 - Microsoft Teams Essentials |
Option 2 - Microsoft 365 Business Basic |
| Sign up process |
- Sign in with your existing email account (Hotmail, Gmail, Yahoo) using the Business Standard sign-up process.
|
- Domain account sign-up.
- Some organizations might need Domain Account enterprise-level agreement.
|
| Available apps |
- Microsoft Teams with cloud storage in OneDrive.
- To edit files shared in Teams, Web versions of the following apps at microsoft365.com:
|
- Microsoft Teams.
- OneDrive.
- Microsoft Exchange.
- SharePoint.
- Microsoft Bookings.
- Microsoft Planner.
- Microsoft Lists.
- Premium Microsoft 365 for the web for the following apps at microsoft365.com:
|
| Available services |
- No additional services beyond core apps.
|
- Branded email accounts with Outlook.
- Shared calendars.
- Bookings, appointment scheduling, and meeting recordings.
- Shared document storage and SharePoint sites.
- Microsoft Planner.
- Microsoft Lists.
- Additional Teams features:
- Meeting recordings.
- Anonymous call access.
- Easier document sharing within your organization.
- Support for the compliance needs of different industries.
- Access and control over users' use of services.
- Widest range of integrations of non-Microsoft apps, such as Salesforce and Adobe, that work within Teams and Microsoft 365.
|
| Recommended organizations |
- Small organizations who need to collaborate effectively over video meetings and chat.
- Organizations that want some remote work and collaboration tools and are comfortable with Microsoft acting as controller of their data.
|
- Organizations that need Microsoft's full suite of remote work and collaboration tools.
- Organizations that want branded email accounts.
- Organizations with a custom domain to attach to Microsoft 365.
- Organizations that need Microsoft to act as a processor for their data under Microsoft's Data Protection Addendum.
- Organizations who are in regulated industries.
- Organizations who:
- Are in regulated industries.
- Seek more control over the use of the services by their users and over processing of related data by Microsoft.
These organizations should sign up under the Domain Account enterprise-level agreement.
|
| Required knowledge |
- Technical knowledge to run a domain isn't required.
|
- Requires purchase or ownership of a domain.
- For an existing domain, domain access credentials and domain ownership proof are required.
- Some domain technical knowledge might be needed.
|
| Governing Agreement and data handling |
- Available under the supplement to the Microsoft Services Agreement.
- Organizations should be comfortable with Microsoft acting as controller for their data under the Microsoft Privacy Statement.
- This option doesn't have access to content or data of invited users. For example:
- If you're working collaboratively with invited users on a document stored in their account, they might choose to make those documents inaccessible to you.
- Invited users might choose not to transfer documents in their Simplified Sign-Up account to your Domain Account subscription, even after you invite them to join the Domain Account subscription. Their documents might not be accessible to the organization even if you add a domain account later.
Evaluate data ownership and intellectual property rights considerations accordingly.
|
- Available under the Microsoft Online Subscription Agreement.
- Best for organizations that need Microsoft to act as a processor for their data under Microsoft's Data Protection Addendum.
- Organizations who:
- Are in regulated industries.
- Seek more control over the use of the services by their users and over processing of related data by Microsoft.
These organizations should sign up under the Domain Account enterprise-level agreement.
|
Frequently asked questions
What is a business email and what are the advantages of setting one up?
A business email is an email that uses your own domain name. For example, if you own the domain name contoso.com, you can build a website using the URL www.contoso.com, but you can also have a custom email address such as yourname@contoso.com. This email is referred to as a branded business email as it gives your email a professional look.
How do I get a new business email address?
You have three options for getting a business email.
- Use a suggested onmicrosoft.com domain for free (
someone@mybusiness.onmicrosoft.com).
- Buy a new domain to have a more compact email address (
mybusinessname@contoso.com).
- Use a domain name that you already own.
Why might I need to verify my domain to create a business email?
If you choose to use a domain you already own, you can use it for your email address with Microsoft 365. As part of the sign-up process, Microsoft asks you to verify the domain for security purposes and to protect against fraudulent activity.
How does recurring billing work?
When recurring billing is on, your subscription continues to be billed each month (or year, depending on your billing plan) on the day you subscribed. You can turn it off or back on again in the admin center if your subscription is active. For more information, see Manage recurring billing in the Microsoft 365 admin center.
What do I do if I want to change my business name?
Contact the small business support experts who can help you change your business name. For more information, see Get support.
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