When it comes to staying productive digitally, Microsoft has many heavy hitters. Two of this company’s best-selling software products are Microsoft Office and Microsoft 365. At first glance, these program suites can seem similar—the way they’re packaged and priced are two immediate similarities.
However, these programs can differ significantly. Understanding these differences can help individuals, small businesses, and large corporations make an informed buying decision when buying or upgrading their office productivity software.
In this blog post, SoftwareCW will explain:
- What Microsoft Office is
- What Microsoft 365 is
- The similarities when comparing Microsoft Office vs. 365
- The differences between Microsoft Office and 365
What Is Microsoft Office?
Microsoft Office is the traditional version of Microsoft’s work productivity software. This software offers a one-time license, meaning you can purchase a license and have access to the specific program you purchased forever.
Microsoft Office typically receives major software updates every few years, meaning you’ll find these products called things like Microsoft Office 2016 and Microsoft Office 2019. Generally, older versions of this program should give most users everything they need to stay productive. However, the latest edition might be better if you want or need the latest Office features.
So, what does Microsoft Office contain? This software provides you with full access to the following MS Office suite programs:
- Microsoft Word
- Microsoft Excel
- Microsoft PowerPoint
- Microsoft Outlook (available in certain editions)
- Microsoft Access (available in certain editions)
Choosing Microsoft Office means you’re typically able to use your purchased software as long as your operating system supports it. However, the software updates you receive will only be security-related. That means missing out on the latest Microsoft product innovations.
What Is Microsoft 365?
Formerly known as Office 365, Microsoft 365 is a subscription-based version of Microsoft’s signature business tools. When comparing Microsoft Office vs. 365, the latter option has users pay a monthly or yearly fee to continually access the latest versions of Office apps, along with cloud services and continuous updates. Microsoft 365 also offers software packages for individuals, families, businesses, and large enterprises.
Key features of Microsoft 365 include:
- Consistent access to automatically updated Office apps (Word, Excel, PowerPoint, and Outlook)
- Cloud storage is provided by OneDrive, Microsoft’s cloud storage service.
- Teams integration for instant communication and collaboration
- Access to your apps on multiple devices (PCs, laptops, tablets, and smartphones)
Microsoft Office vs. Microsoft 365: Similarities
As mentioned earlier, Office and 365 can seem almost identical. They both offer access to the Microsoft Office suite programs essential to modern work and communication. Whether editing documents in Word, creating pivot tables in Excel, or creating slide decks in PowerPoint, both Microsoft Office and 365 deliver robust user experiences.
The core similarities when comparing Microsoft Office vs. Microsoft 365 include:
- Cross-Platform Compatibility: Both solutions are supported, whether you use Windows or Mac devices.
- File Format Consistency: Microsoft Office and 365 utilize the same file formats (.doc, .docx, .xlsx, etc), meaning less confusion when working with both products simultaneously.
- Stellar Support: Both products receive security patches and technical support. However, only Microsoft 365 gets frequent feature-based updates.
- Familiar Applications: You’ll find familiar favorites like Word, Excel, PowerPoint, and Outlook while using Microsoft Office and Microsoft 365.
Microsoft Office vs. Microsoft 365: Differences
Understanding how Microsoft 365 and Office differ is vital. Knowing this information can help you save money and avoid purchasing software that isn’t right for you. Here’s a closer look at the difference between Microsoft Office and 365.
Pricing Model
The pricing model of Microsoft Office is a one-time purchase that typically ranges from $150 to $500, depending on the edition and the retailer you buy it from. That means paying once and owning Microsoft Office forever. However, you won’t get all updates without using the latest version of these programs.
When comparing Microsoft Office vs 365, the latter uses a subscription-based system, meaning that users pay a single price and have access to Microsoft’s business tools for up to a year. When the year ends, users must purchase a new annual license to continue using Microsoft 365.
Types of Software Updates
Buying Microsoft Office enables you to receive security-related and other essential updates. However, you won’t have access to feature-related updates. Purchasing Microsoft 365 lets you use consistently updated software for up-to-date performance improvements, AI enhancements, and other innovations from Microsoft.
You may save money in the long run by purchasing a specific Microsoft Office version. If you must have access to the latest in Microsoft’s software-related innovations, consider subscribing to Microsoft 365.
Microsoft Office vs. 365: Cloud Integration
One of the most defining differences between Microsoft Office and 365 involves cloud integration—a factor that’s becoming more important in today’s remote and hybrid work environments.
Microsoft 365 is built from the ground up with cloud functionality in mind. Each Microsoft 365 subscription includes at least one terabyte (TB) of cloud storage space per user, making it easy to back up files, access them remotely, and collaborate in real-time. When you save a document in PowerPoint, Word, or Excel, it will automatically sync to Microsoft’s included cloud.
When comparing Microsoft Office vs 365, the former offers limited cloud functionality. You can use OneDrive or a similar service to manually upload and store files created in Microsoft Office. However, applications used through Office instead of 365 won’t have the cloud storage functionalities. That also means no real-time collaboration or automatic backups. It’s not the end of the world if you don’t mind a bit of manual saving and sharing, but you also run that (most likely rare) risk of a program error or the power going out and losing your progress.
Device Flexibility
When comparing Microsoft Office vs 365, device flexibility is another major factor, especially if you live and work in a world where you or co-workers often switch between desktop PCs, laptops, tablets, smartphones, and other connected devices throughout a typical day.
Microsoft designed Microsoft 365 with multi-device functionality in mind. For example, a single Microsoft 365 subscription lets you install and harness the power of Microsoft’s Office suite software on up to five devices at the same time, which can be a huge money saver for small work teams on tight budgets.
Compatible modern devices include most:
- Desktop computers
- Laptop computers
- MacBooks
- Smartphones
- Tablets
In contrast, Microsoft Office is typically licensed for use on a single device. For example, you purchase Microsoft Office 2021 and install it on your desktop at home. If so, you won’t be able to install the same software on your smartphone or tablet.
Differences Between Microsoft Office and 365: Additional Services
Lastly, another difference when comparing Microsoft Office vs 365 involves the range of services included. While both suites provide access to core Office applications, Microsoft 365 goes beyond basic software to deliver a more developed set of productivity tools, cloud services, and other enticing features.
Purchasing Microsoft Office offers a more streamlined product experience. You get the core applications. In contrast, Microsoft 365 is loaded with additional value to offer a dynamic environment that caters to the various demands of the modern, tech-savvy user.
SoftwareCW hopes this post sheds light on the subject of Microsoft Office vs. 365. Fortunately, either software option gives you immense functionality to create professional-level documents, presentations, spreadsheets, and more. Take a closer look at each software option to learn its advantages by visiting SoftwareCW’s online software store.