We’ve been used to Microsoft Office for years, then the new version ‘365’ came along. Is there a difference between them, and if so what is it?
The simple answer is that yes, there is a different between them.
There are also some similarities…
Microsoft Office
This has always meant the Office Suite of applications:
- Word (word processing)
- Excel (spreadsheet)
- PowerPoint (presentation slides)
- Outlook (personal information management – email, calendar, contacts and tasks)
- Access (database)
While there has been a few different versions over the years, for example the addition of OneNote (digital notes) with Office 2003, it hasn’t really changed all that much.
You could purchase a license for each of these programs individually, or together in one of the MS Office suites (versions).
(The Professional version usually included Access, and there were other versions for businesses.)
This allowed you to install and then use the fully featured desktop application/program.
(Hint: That’s an important point)
Microsoft announced that Office 2019 is the last version that you can purchase without the new subscription of M365 – i.e. as a standalone Office product.
Microsoft 365 / M365
First let’s deal with the name –
Microsoft’s subscription offer for the Office Suite was brought out in June 2011 as Office 365.
Last year (2020), the name was changed to Microsoft 365.
From a feature level – there is is no real difference.
According to the Microsoft Blog post:
Simply put, our customers have had a hard time deciding which SKU is right for them. Our mid-priced SKU is called “Office 365 Business Premium,” our premium SKU is called “Microsoft 365 Business,” while our “Office 365 Business Essentials” SKU has more cloud services value than our “Office 365 Business” SKU.
With the new name, we’re shifting focus to how our services deliver value to our customers.
Microsoft US Partner Blog
SKU = Stock Keeping Unit – a product code that you can use to search and identify stock.
Now that you know, I’m going to use either Microsoft 365 or just M365.
What is M365?
Good question.
This new version mixes our classic desktop programs with cloud storage and apps.
Desktop Applications
You’ll be happy to hear that the classic MS Office Suite is part of your subscription.
It’s no longer identified by a year (e.g. Word 2013), instead they are now all know as ‘365’ – i.e. Word 365, Excel 365 etc.
This is to show you that you have the latest version, including any new updates.
The Office Suite includes:
- Word
- Excel
- PowerPoint
- OneNote
- Outlook
To go along with the desktop programs, your Microsoft subscription includes both cloud storage and internet connected apps.
Cloud Storage
Your cloud storage is called OneDrive.
Because it’s part of your paid subscription it’s a respectable 1 Terabyte of space.
If you’re not sure about the sizes, have a look at my post Do you know your Bits and Bytes?
With cloud storage, your information is stored in a location that you can access from any internet connected device – it’s always with you.
For those concerned about security:
- There are security protocols in place, so that only authorised people can access it
- Microsoft stores a number of backup copies (around 10 in fact)
Advantages
- Available wherever you are – with an internet connection
- Can be shared with others – when you give permission
- New computer needs to reconnected – don’t need to move data
Disadvantages
- Not backed-up – it’s still your responsibility to make backup copies
Online Apps
M365 includes versions of the popular Office programs that are available for internet connected devices.
They are called Office Online – and come in two ‘versions’
First, they are accessible through any internet browser – where the name ‘Online’ comes from.
Second, the same versions are available as apps for your portable devices – smartphone and tablets.
As Office Online is the version that is always available to you via the internet, the apps are cut-down versions compared to the desktop.
All of the main functions are available, it’s mostly the more complex commands (e.g. Mail Merge in Word, Data Analysis or PivotChart in Excel) that are ‘missing’.
However the internet apps connect seamlessly with the desktop versions if you need more options.
Subscription Service
Over the last few years a number of programs, that we historically purchased, download and installed have moved over to SaaS – Software as a Service.
Basically this mean that instead of a single purchase price, and then for each upgrade you purchase them again, you pay monthly (or yearly) to always be on the latest/current version.
Many companies include updates and upgrades as part of this price.
As you may have guessed – this is what Microsoft is now doing with M365.
You have a choice (for Home use) either Personal or Family.
The difference – £20 per year.
Personal = a license for one person at £59.99 (year) or £5.99 (month).
Family = a license each for up to 6 people at £79.99 (year) or £7.99 (month).
If you have more than one person within your family/group that wants to use Microsoft suite the Family option is a simple and cost effective way to go.
https://www.microsoft.com/en-gb/microsoft-365/buy/compare-all-microsoft-365-products
Remember as a subscription service you will be paying this – basically – forever.
It’s not as bad as you think… to purchase the Office Suite (full version) was generally around £500, with the upgrade options (if you could prove that you had a previous version) £200-300.
If you then upgraded when each new version came out – every 2/3 years, then it works out (for the upgrade) around £100 a year – which is more than even the family option.
One thing that I haven’t mentioned yet – is that you can install the apps across 5 devices as part of your license – so that could be desktop (1), laptop (2), phone (3), tablet (4) and still have one license spare.
Wrap Up
Going back to the main question – is there a difference between Office and 365 – as you’ve read, the main difference is that M365 includes both the desktop versions (Office) and the online versions.
Have you got my tips for Microsoft 365 yet? Request the 15 Top Tips for Microsoft 365
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