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The Difference Between Microsoft 365 and Office 365

Microsoft 365 vs Office 365

Microsoft 365 was first announced at Inspire 2017 a few years ago. The new product debuted with two configurations aimed at distinct parts of the market: Microsoft 365 Business and Microsoft 365 Enterprise. It comprises Office 365, Windows 10, and Enterprise Mobility + Security. Microsoft 365 is now available for individual and family use.

Microsoft 365 Business was created for small-to-medium-sized organizations with up to 300 users. This service only has rudimentary security protections, but it's still a terrific turnkey solution for small organizations who want to use Windows 10 and Office 365 in a more integrated and secure way.

What is Office 365?

A subscription-based cloud services platform that provides popular Microsoft applications such as Word, Excel, PowerPoint, and OneDrive (along with other productivity services) online or on-premises.

What is Microsoft 365?

For a complete, integrated experience, this bundle includes the MS Office suite, Windows 10 Pro, and Enterprise Mobility+Security.

Microsoft 365 Enterprise is intended for larger enterprises that desire a single, secure platform to share and interact with, as the name implies. On top of Windows 10 Pro and Office 365, it has powerful data security protections.

Finally, Microsoft 365 for home usage is aimed at individuals or families that want to improve their productivity on a daily basis. Users may access premium Office apps across all of their devices, focusing on seamless connectivity and organization regardless of their screen.

Why don't you sign up for Office 365?

M365 is Microsoft's reaction to consumers who want a whole package for business productivity, similar to how the Xbox One X was Microsoft's response to customers who wanted to upgrade to a more powerful gaming experience in 2017.

Small-to-medium-sized enterprises that want to use Office 365 would have to acquire Windows 10 Pro piecemeal and subscribe to a security service separately. The company would then have to ensure that all of its users were linked correctly and protected by the security subscription.

Everything is integrated from the start with MS365. This makes purchasing easier, but it also makes navigation easier for end customers. Businesses who buy into the complete Microsoft ecosystem from the beginning have the opportunity to save money and resources that can be put to better use.

What exactly does each one have to offer?

The Microsoft 365 Business offering is simple, but Enterprise and Education have numerous tiers suited to different use cases. What exactly is included in the Microsoft Office suite? Here's what you'll need to know:

Microsoft 365 Business

Microsoft 365 Business is intended for small businesses with less than 300 employees. It is made up of the following components:

  • Device management capabilities via Microsoft Intune

  • Basic data and app security

  • The MS Office suite

  • 1TB of storage

Microsoft 365

Microsoft 365 Enterprise

Microsoft 365 Enterprise is designed for larger businesses that require enhanced security and device management capabilities. It's divided into three sections:

F1 (for Firstline Workers)

  • Office 365 (minus Access)

  • Basic threat protection

E3 (Basic Tier)

  • Office 365

  • Basic threat protection

  • Office 365 Data Loss Prevention

E5 (Premium Tier)

  • Office 365

  • Advanced threat protection

  • Office 365 Data Loss Prevention

  • Audio conferencing/Phone system

  • Advanced compliance tools

  • Analytics tools

Microsoft 365 Home


  • One person

  • 1TB of storage

  • Access to the latest Office apps

  • Seamless experience across screens


  • 2-6 people

  • 1TB of storage per person

  • Same apps and experience as the Personal plan

  • Premium safety features accessible via the mobile app

Microsoft 365 Education

A1 (Basic)

  • A free, limited version of Office (for students and teachers) complete with all the essentials needed to enhance learning in the classroom

  • Basic information protection

A3 (Standard)

  • Everything in A1

  • Full access to Office desktop apps

  • Stronger information protection and security management tools

A5 (Premium)

  • Everything in A3

  • Advanced security tools

  • Advanced compliance tools

  • Analytics systems

In a Nutshell: Microsoft 365

M365 has a lot to offer businesses that haven't switched to Office 365 yet and want to get up and running quickly. Microsoft 365 Business should be particularly popular among new SMEs looking to establish a collaborative environment quickly. Microsoft 365 Personal is a no-brainer for individuals who wish to access all of their notes and personal projects from any device.


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