Introduction
Choosing the right Microsoft 365 license is an important step for growing businesses that want to scale efficiently without overspending. Two commonly considered plans are Microsoft 365 Business Standard and Microsoft 365 F3. At first glance, these plans may seem very similar — but they serve very different needs.
In this article, we’ll compare the two head-to-head to help you decide which one is the better fit for your team. We’ll also explain how working with a Microsoft Partner like us can simplify the process, ensure compliance, and save money over time.
What Is Microsoft 365 Business Standard?
Business Standard is a powerful plan designed for small to midsize businesses that need robust productivity and collaboration tools - including full desktop Office apps.
Key Features:
- 1. Full desktop versions of Word, Excel, PowerPoint, Outlook, and more
- 2. 50 GB Mailbox per user
- 3. Entra ID (Azure AD) Free (basic security controls & MFA)
- 4. 1 TB OneDrive storage per user
- 5. Teams Webinars, SharePoint, and other cloud collaboration tools
- 6. Available up to 300 users
Ideal For:
Small/medium Businesses with a large number of knowledge workers, remote workers, hybrid setups, or those needing strong security and productivity features.
What Is Microsoft 365 F3?
F3 (formerly F1) is built for frontline workers — employees who don't need full desktop Office apps but still need access to company tools and communication platforms.
Key Features:
- 1. Web and mobile versions of Office apps (no desktop apps)
- 2. 2 GB mailbox per user
- 3. Limited OneDrive and SharePoint
- 4. Basic security and compliance tools
- 5. No support for Intune or full endpoint protection
- 6. Teams Essentials (1 hour limit, 100 participants)
Ideal For:
Shift workers, retail employees, warehouse staff, or users who work primarily on shared devices.
Price Comparison
The pricing of Business Standard and F3 varies greatly because they provide very different resources. Here's our current pricing*:
Business Standard: $11.99/user (monthly) or $132.99/user (annually)
F3: $7.65/user (monthly) or $86.99/user (annually)
P.S.: Never pay Microsoft direct prices! Buying with Cosmistack can save you over 10% per license (which adds up quickly over the months). View our full Microsoft 365 License offerings here.
*Pricing as of 2025; actual cost may vary;
When to Choose Business Standard
- 1. Your users need desktop Office apps
- 2. You want full, robust access to email, OneDrive, and more collaboration tools.
- 3. You’re preparing for cyber insurance or compliance requirements
- 4. Your team works remotely or across multiple devices
When to Choose F3
- 1. Your users are frontline staff with minimal computing needs
- 2. You want to reduce licensing costs without sacrificing communication tools
- 3. You need email and Teams access on shared or mobile devices
- 4. You’re equipping staff in hospitality, retail, manufacturing, etc.
Still Not Sure? Let a Microsoft Partner Like Cosmistack Help
As a trusted Microsoft Partner, we help organizations:
- 1. Select the right licenses (without overpaying)
- 2. Migrate accounts, data, and emails (additional fees may apply)
- 3. Manage licenses month-to-month as your business grows and simplify billing (terms available, subject to approval)
- 4. Provide support and security best practices tailored to your industry
If you're curious, you can also check out the full features comparison in this awesome matrix from M365 Maps.
Conclusion
The best Microsoft 365 plan depends on your workforce’s daily needs and your long-term IT strategy. Business Standard is a robust, all-in-one solution for knowledge workers and growing teams. F3 is ideal for supporting a larger frontline workforce efficiently and affordably. Keep in mind, your don't have to choose one or the other for all of your users - you can purchase a variety of licenses and assign to your users based on what's right for their job roles.
If you’re unsure which license mix is right, we can help — reach out for a free consultation today. We look forward to hearing from you!
