In today’s fast-paced digital world, small and medium-sized businesses need robust and affordable tools to collaborate, communicate, and remain productive—especially as remote and hybrid work becomes the norm. Microsoft 365 Business Basic is designed exactly for that purpose.
Despite being the most cost-effective tier in the Microsoft 365 lineup, Business Basic packs a powerful punch. It combines cloud-based productivity apps with professional-grade communication and collaboration tools, all secured under Microsoft’s trusted umbrella.
What Is Microsoft 365 Business Basic?
Microsoft 365 Business Basic is a cloud-based productivity suite tailored for businesses that don’t require full desktop apps like Word or Excel installed locally. It’s ideal for companies that are either fully remote or highly mobile.
What's Included in the Plan?
Product Description
Exchange Online Business-class email with a 50 GB mailbox and custom email domain address.
Microsoft Teams Chat, video calling, and collaboration hub for remote work.
OneDrive for Business 1 TB of personal cloud storage per user.
SharePoint Online Tools for building intranet sites and managing content and workflows.
Web & Mobile Apps Online versions of Word, Excel, PowerPoint, and OneNote.
Note: Desktop versions of Office apps (Word, Excel, etc.) are not included in this plan.
Key Features and Benefits
Cost-Effective Communication
With Microsoft Teams, users can chat, host video meetings, share files, and integrate third-party apps—all in one platform. It eliminates the need for separate tools like Zoom or Slack.Secure Email Hosting
Business Basic includes Exchange Online, offering enterprise-grade email with anti-malware and anti-spam protection.Remote File Access
Store, access, and share files from anywhere using OneDrive for Business. The built-in collaboration features allow real-time co-authoring.Efficient Document Management
Use SharePoint Online to create company intranet sites or document libraries, enhancing internal communication and knowledge sharing.Web Productivity
While you don’t get desktop apps, the web versions of Word, Excel, and PowerPoint are surprisingly robust and continually updated.
Automating License Assignment with PowerShell
For IT administrators managing dozens or hundreds of users, manually assigning Microsoft 365 licenses can be tedious. With PowerShell, you can automate this process.
Here’s how to assign the Microsoft 365 Business Basic license to a user using PowerShell:
Prerequisites:
Microsoft 365 tenant
PowerShell with the Microsoft Graph module or the older MSOnline module
PowerShell Script (Using MSOnline Module)
powershell
# Install the module if it's not already installed
Install-Module MSOnline -Force
# Connect to Microsoft 365
Connect-MsolService
# Define variables
$userPrincipalName = "john.doe@yourdomain.com"
$licenseSku = "yourtenant:BUSINESS_BASIC" # Replace 'yourtenant' with your actual tenant name
# Assign the license
Set-MsolUser -UserPrincipalName $userPrincipalName -UsageLocation "US"
Set-MsolUserLicense -UserPrincipalName $userPrincipalName -AddLicenses $licenseSku
Write-Host "License assigned successfully to $userPrincipalName"
Notes:
To find your exact SKU, run:
powershell
Get-MsolAccountSku
Make sure the user’s UsageLocation is set, or the license assignment will fail.
Final Thoughts
Microsoft 365 Business Basic is a smart entry point for businesses looking to move to the cloud. It’s perfect for teams that rely on communication, collaboration, and cloud-based productivity—without the cost of full desktop Office apps.
Whether you’re a startup founder, an IT admin, or a consultant advising small businesses, Microsoft 365 Business Basic gives you the core tools needed to modernize the workplace at a budget-friendly price.
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