Microsoft 365 vs. Office 365: What’s the difference?
IONOS editorial team4 mins
Since its rebrand, the Microsoft 365 office and cloud service combines all the functions of the Office 365 suite. Thanks to automatic conversion, not much changed for existing Office subscriptions. New customers, in turn, can choose between different Microsoft 365 subscriptions for private or business use.
Why did Office 365 become Microsoft 365?
Productivity tools like Word and Excel have a long history dating back to the 1980s. In 2010, Microsoft made a significant move by bringing together all their essential applications into one plan called Office 365. As technology evolved, with advancements like cloud integration, machine learning, and artificial intelligence, Microsoft adapted. This adaptation led to the rebranding of Office 365 as Microsoft 365 in April 2020. The goal was to create a representative complete solution that includes these new features and Microsoft’s cloud services in a unified plan.
For a detailed explanation of the differences between Office 365 and Microsoft 365, see our articles “What is Office 365?” and “What is Microsoft 365?”.
Table comparison of Microsoft 365 vs. Office 365
The company plans to complete the full transition to Microsoft 365 in 2023. This transition includes not only the new design but also all the Office applications that were part of the Office 365 offering. This encompasses previous subscription plans, popular Microsoft apps like Word, Excel, and PowerPoint, and the Office mobile app. Additionally, Microsoft is already announcing new features, such as improved OneDrive security, enhanced real-time collaboration with the Teams app, and AI integration in Microsoft services.
The new Microsoft 365 and the former Office 365 are quite similar, with most of the familiar Office 365 features integrated into the new all-in-one solution. We’ve summarized the few remaining main differences in the table below:
| Differences | Microsoft 365 | Office 365 |
|---|---|---|
| First release | Rebranding from Office 365 to Microsoft 365 from April 21, 2020 | Announced as an enterprise solution from 2010, Office 365 Home Premium from 2013 |
| Target group | Private, education sector, small and medium-sized enterprises, large companies with many end devices | From 2020 for new customers only Office 365 Education plans for educational institutions |
| Microsoft apps included | Includes all Microsoft apps such as Word, Excel and PowerPoint that Office 365 also offered - including new features such as Microsoft 365 Copilot | Office 365 Education currently only includes Word, Excel, PowerPoint, OneNote and Teams |
| Price | Various pricing models depending on personal or business use | Office 365 Education free for eligible educational institutions |
In the long term, it can be assumed that Microsoft will also transfer existing Office plans such as Office 365 E1, E3 and E5 and Office 365 Education to Microsoft 365. To find out which Office version you have check “File” and “Account” in a Microsoft app like Word.
What are the Microsoft 365 subscription plans?
To buy Microsoft 365, find the subscription plan that suits you best. Microsoft offers tailored subscriptions including Microsoft apps for the following target groups and categories.
Updated: July 2023
Family and individuals
Microsoft 365 subscription models for private use include plans for families or individual users.
- Microsoft 365 Family: For up to 6 people and 5 end devices at the same time + up to 6 TB OneDrive cloud storage (1 TB per person) - $99.99/year (annual payment).
- Microsoft 365 Personal: For 1 person on up to 5 end devices at the same time + 1 TB OneDrive cloud storage - $69.99/year (annual payment).
Small and medium enterprises
Subscription models for small and medium-sized companies include popular Microsoft apps and collaboration tools such as Word, Excel, PowerPoint Teams, Outlook, Exchange Server and OneDrive. Depending on the plan, additional security features and administrative management and reporting tools are added. Since subscription prices are subject to change, we only provide approximate values here.
- Microsoft 365 Business Basic: Approx. $7 per month per account/person for an annual subscription
- Microsoft 365 Business Standard: Approx. $14 per month per account/person for an annual subscription
- Microsoft 365 Business Premium: Approx. $23 per month per account/person for an annual subscription
- Microsoft 365 Apps for Business: Approx. $11 per month per account/person
Large companies
Enterprise subscription plans for Microsoft 365 are specifically tailored to large business needs. In addition to the usual range of services from Microsoft 365, they include, among other things: diverse back office functions, security features, compliance and access rights management, analysis tools and work management.
- Microsoft 365 E3: Approx. $40 per month per account/person for an annual subscription
- Microsoft 365 E5: Approx. $65 per month per account/person for an annual subscription
- Microsoft 365 F3: Approx. $8 per month per account/person for an annual subscription
- Microsoft 365 Apps for Business: Approx. $11 per month per account/person
School and studies
For eligible educational institutions such as schools or universities, Microsoft offers free Microsoft 365 Education plans. Depending on your needs, the plans include the basic tools in the form of common Microsoft apps, advanced security and analysis functions as well as optimized tools for administration, security and licensing.
- Microsoft 365 A1 (also as Office 365 A1): Free
- Microsoft 365 A3 (also as Office 365 A1): Pricing available on request
- Microsoft 365 A5 (also as Office 365 A1): Pricing available on request
