How is Microsoft 365 Different from Office 365?


Microsoft 365 and Office 365 are two different products of Microsoft, often confused by the users. The most probable reason can be the similarity of names. Both the products assist in organisational operations on the cloud, yet there are several differences in their offerings. So let’s delve deep into what these two Microsoft products are and how different or the same the two are.

Office 365

Office 365 is a cloud-based suite of apps and services to enhance business productivity and efficiency. Microsoft launched this Software as a Service (SaaS) in 2011. It is a subscription-based suite of applications and services which is pocket-friendly and convenient.


Office 365 includes several conventional Microsoft desktop applications like Microsoft Outlook, Excel, Word, Powerpoint, etc., alongside other functionalities. In addition, it offers online services for file storage and team communication and collaboration. Depending on the plan and subscription offered by your CSP, your Office 365 package may include, Planner, Yammer, Teams, Skype for Business, Sharepoint, One Drive, etc.


Microsoft 365

Microsoft 365 is by far the most widely adopted Microsoft product, with over 145 million active users. It is one of the top cloud solutions in the market widely adopted in healthcare, finance, manufacturing and consulting services. At 82%, the financial services industry is the fourth largest industry to have adopted Microsoft 365.


Microsoft 365 was first launched in 2017. It is a bundle of services offered by Microsoft, encompassing Office 365, Windows 10 and EMS (Enterprise Mobility & Security). The services provided by Microsoft 365 are also available as separate licenses. Like Office 365, Microsoft 365 too comes in different subscription plans for users.

Office 365 Vs Microsoft 365

From 21st April, 2021, Microsoft officially rebranded Office 365 as Microsoft 365 for specific small and medium businesses. However, this move should not be perceived as old wine in a new bottle scenario. Instead, the objective was to provide a single complete productivity platform for the users without making any substantial changes to their subscribed packages since 21st April.


The fundamental difference between Office 365 and Microsoft 365 is that the latter is a more enhanced version of the former. It has security tools and the latest OS as add-ons.


The earlier versions of Microsoft Office (2013, 2016, 2019) were software suites for upfront purchase with a one-time license. You could install it on your computer and use it for life. For updates again, one has to buy the latest version to access all the features. Eventually, Office shifted to the subscription-based model. Office 365 can be availed from home users to enterprise packages on a subscription basis.


Microsoft 365 requires a monthly or annual subscription for users to access all the tools and services hosted on the Microsoft servers. It also includes an online version of Office 365. So, it is unnecessary to install the Office package physically on your system. The users always have access to the latest features and services as Microsoft keeps updating the platform.

Why is Microsoft 365 Growing in Popularity?

With several options for all-in-one subscriptions offering Microsoft Cloud services, Microsoft Office and Windows 10 operating system, Microsoft 365 is rapidly becoming the obvious choice for most organisations. Some other factors that make it more appealing to businesses include:

  • Security and compatibility
  • Auto-updates for the latest features and services
  • Ease of access from anywhere any time
  • Better team collaboration and sharing tools
  • Enhanced desktop functionality while easing off IT maintenance burden
  • AI capabilities for better user experience

Besides all these benefits, there are two significant cons involved in choosing Microsoft 365. First, to work with Microsoft 365, you have to have a steady internet connection — no connectivity means no work. Also, you may incur costly system upgrades before migration if your system is not compatible with Microsoft 365.



Cloud migration is no longer an option or a luxury for organisations. It is a necessity if your business aims at keeping up with competitors. 365Solutions is a managed cloud solution provider that guides you through the whole cloud adoption process. We offer different subscription plans on Microsoft Office products at reasonable prices. 


Visit our website for pricing and offerings on Business Standard, Premium and Enterprise plans of both Office 365 and Microsoft 365. Choose the plan that perfectly fits your organisation’s IT needs with 365Solutions. You can reach us at +44 20 3880 1220 or


Also Read

Microsoft Announces Price Increase of Office 365 and Microsoft 365 Services

5 Key Benefits of Microsoft 365 for Every Business



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