Microsoft is crucial for the growth and productivity of any business. From managing meetings and presentations to keeping records of finances, it’s all Microsoft. You might be amazed to know that within the past 12 years, Microsoft’s quarterly revenue has surged three times. So yes, it’s not only your business but millions of businesses from around the globe that have been benefiting from Microsoft's exceptional products and services.

Despite being exclusively pre-eminent and renowned, Microsoft has still left users with some serious confusion. One of which is how Office 365 and Microsoft 365 are different from each other.

Very often, people use these terms interchangeably because the variety in products and services of Microsoft is never-ending. Resultantly, it becomes difficult for users to demarcate between them. That’s why we decided to break down whether Office 365 is different from Microsoft 365 for you.

The Backstory

Let’s rewind and discuss how this confusion started in the first place. Back in 2017, Microsoft introduced its new package named ‘Microsoft 365’ to the world. The purpose behind introducing this new product was to provide services under one licence. Before the year 2017, Microsoft only had one operational service under the name ‘Office 365.’ So yes, things have gotten complicated for the users ever since the new release by Microsoft.

That’s not all. In 2021, Microsoft officially came up with the announcement of rebranding Office 365 to Microsoft 365. This announcement left people even more perplexed. To date, most users don’t know the right way to make use of Microsoft’s services and end up wasting a substantial sum.

That is why we decided to clear this uncertainty once and for all.

In addition to that, if you really want to utilize the services of Microsoft in a productive yet budget-friendly way, then span.zone has got your back with perfectly streamlined products and services from Microsoft.

Coming back to the differences between Office 365 and Microsoft 365, we’ll ensure to resolve all of your queries by the end of this article.

What is Office 365?

Despite rebranding Office 365 to Microsoft 365, Microsoft did not eradicate it from its system. People can still subscribe to Office 365 and use its services exclusively. Office 365 includes apps that are centered on enhancing productivity for businesses.

All of the apps operate on a cloud-based interface, and you might already be familiar with many of them. From Word, Excel, and PowerPoint to OneDrive, Outlook, Microsoft teams, and Skype for business, it’s all part of Office 365.

You might be noticing that all the cloud-based apps of Office 365 focus on making work more accessible, streamlined, and creative for businesses. So, Microsoft primarily targets not only small to mid-sized, but large-sized enterprises as well through Office 365. It seems like all the rebranding has so far been in favor of Microsoft, as Office 365 holds a market share of 47.5%, which is more than that of Google’s office suite.

What is Microsoft 365?

Unlike Office 365, Microsoft 365 is a one-stop solution for enterprises as it includes additional products and services along with Office 365. You must be wondering what those additional products and services are. Well, Microsoft 365 offers Enterprise Mobility, Windows 10 OS, and a complete security system along with all the cloud-based applications of Office 365 that we mentioned above.

It wouldn't be inaccurate to say that Microsoft 365 is all about providing a joint experience to businesses where they can work in an ecosystem that is easy and simple to navigate through. Hence, the versatility of Microsoft 365 substantially assists companies in staying up to date. The adaptation of companies to Microsoft 365 has been exceptional so far as its number of active users surged by two times in the past year.

The key differences between Office 365 and Microsoft 365

Now that we have already given you a brief overview regarding Office 365 and Microsoft 365, it’s time to dig into the key differences between both.

1.    The Subscription Plans

The first difference that we have onboard is between the subscription plans of Office 365 and Microsoft 365. Before rebranding, the services of Office 365 were available on a monthly subscription basis, but that is not the case now.

Microsoft turned Office 365 into a one-time purchase platform. That is why Office 365 seems like a massive investment at first, but the investment is worth every single penny as access is granted for a lifetime.

On the other hand, Microsoft 365 operates completely opposite from Office 365 as it has different packages, licenses, and subscription plans starting at as low as 20 dollars per month. The different packages of Microsoft 365 offer different services.

Hence, the cost varies for each of them. The best part about the subscription plans of Microsoft 365 is that they provide users with an opportunity to pay for only those services which they actually need whereas Office 365 does not offer this much flexibility. However, Microsoft 365 does require an annual commitment by its users.

2.    Granting Access to Others

Secondly, Office 365 varies from Microsoft 365 with the option of sharing subscription plans and services with other people. Both Office 365 and Microsoft 365 allow their services to be shared with five other people, but both platforms operate quite differently. Microsoft 365 offers an exclusive Family plan in which a user can share its services with five other people, as we mentioned before, but that is not the case for Office 365.

If you buy Office 365 personal, then it is limited to being used by only one person as it does not grant access to other people. So, if you want to share it with other people, then you’ll have to opt for Office 365 for business which also allows access to five other people.

However, there’s definitely a significant difference in prices between both categories of Office 365. If you want to opt for a more budget-friendly option, then the family plan of Microsoft 365 will surely suit your requirements because of its comparatively low-priced monthly subscriptions.

3.    Upgrading to the latest features

The third difference we have on board is whether or not both versions of Microsoft allow upgrading to new features from time to time.  We have to say that Microsoft 365 users are luckier in this case as it gets constantly updated while the users do not have to pay any extra costs. That’s because the users have already committed to yearly subscriptions, which ultimately grant access to new updates, fixes, and the latest features at the same price.

However, things do get a little pricey when it comes to Office 365. As we know, Office 365 is a one-time purchase, so it does not get upgraded to new features for free. If you desire a new and better version of Office 365, then you’ll have to repurchase it at full price.

4.    Attributes and Components

Last but not least, there is an apparent difference between the attributes and components of Office 365 and Microsoft 365. The latter is a hub of productivity tools with the latest features and updates that large enterprises need to work efficiently.

On top of that, there is perennial tech support and an advancing security system that will keep your corporate assets fully secured, ultimately giving businesses a chance to focus on surging their business growth rather than wasting time on administrative tasks.

Office 365 has been developed with a relatively simpler and streamlined approach. Its Azure cloud interface allows users to access its apps anywhere without limitations. You might be stunned to know that the Azure interface has surged Microsoft’s revenue by 30 percent in the last year.  This is due to the high demand for Office 365 among businesses, as it saves them from spending extra money on Microsoft 365 licenses for frontline workers who only need access to limited services.

Conclusion

To conclude, we can say that both Office 365 and Microsoft 365 come along with some exciting pros for businesses. We hope that you have understood the differentiating features between them.

On one hand, if your business is operating on a large scale, then opting for Microsoft 365 will be beneficial for you due to its embedded security system. On the other hand, if your work is limited to the productivity apps offered by Microsoft, then opting for Office 365 will be a great choice.

Opting for products and services that meet your business requirements is critical for the productivity and growth of any organization. That is why you must be determined to gain positive outcomes.