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Microsoft 365 vs Office 365 Comparison to Pick A Business Plan

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Written By Mohit Jha
Anuraag Singh
Approved By Anuraag Singh
Published On August 29th, 2024
Reading Time 11 Minutes Reading

Organizations that want a business suite often turn to Microsoft, as they are known for delivering the best-in-class solution. All was well until Microsoft did a makeover of its product line. This led to unnecessary confusion among admins. They now had to explain the difference between the plans other words make a Microsoft 365 vs Office 365 comparison chart. Moreover, we all know why Microsoft Office 365 is better than Google Workspace the real question is, among M365, which one is the better variant?

However, there are multiple different metrics on which Office 365 plans differ from each other. The problem increases because there are as many similarities as there are differences. All this causes decision-making to become longer and may lead to a sub-optimal selection. To ease the process, we give you this blog, which contains all the points an admin should look at while selecting between Microsoft 365 and Office 365.

Before we look at what’s different, let’s first see where they remain the same.

Microsft 365 vs Office 365 Similarities Explained

As both are part of the same parent company and occupy a similar niche, there are bound to be a few similarities. The biggest cause of similarities is that Microsoft 365 absorbed the Office 365 personal and business level lineup altogether. 

Users had no say in this change as it was Microsoft’s decision. As this change was mandatory, users with Office 365 home/business editions could not stay with their original plan even if they wanted to. 

Office 365 mainly focuses on providing users with a suite of cloud-based productivity tools such as Word, Excel, Outlook, and more. This is ideal for several businesses that need access to Microsoft’s core applications. On the other hand, Microsoft 365 provides users with everything that is already included in Office 365 but adds other features such as Windows 10/11 Enterprise, management capability of devices, and other tools that are aimed at the IT needs of a broader audience. 

Also Read: Find How to Switch From Office 365 Home to Business Subscription Easily

The legacy app functionality remained untouched. So your Word, PowerPoint, Excel, etc behave as usual. Moreover, the newer version cloud just as easily loads the external files created in the previous edition. This backward compatibility was the main reason that Microsoft not only retained but added on more customers post-renaming.

The button placement within apps was also virtually unchanged. This was done so that users don’t face any major disruption in productivity. Also, it meant that organizations could skip over the training required to make their workforce ready.

The way one pays for the subscription is also the same and your payment modes work as they were before the update.

Differences Between Office 365 and Microsoft 365 Enterprise Plans

One of the most important factors to understand when we discuss Microsoft 365 vs Office 365 comparison is the pricing. The Pricing of Microsoft 365 plans is as follows: 

Plan  Features
Microsoft 365 Business Basic Plan Exclusively provides users with web and mobile versions of Office 365 tools along with Exchange and SharePoint. It includes Microsoft Teams which has the capacity for 300 attendees and a cloud storage capacity of 1TB per user. Its price is $6 per month for every user. 
Microsoft 365 Apps for Businesses  Includes desktop versions of Microsoft 365 and Office 365 with all the premium features. It also provides users with 1TB of cloud storage for every user. Users get standard security features, and 24/7 support via web and phone. Its price is $8.25 per month for every user.
Microsoft 365 Business Standard The complete set of apps in the basic plan, along with an addition of desktop Office 365 and premium versions of Microsoft 365 apps. Access and Publisher applications are also included here. More appropriate for hosting webinars, reporting, and scheduling meetings with clients.

Costing: $12.50 for every individual user each month.

Microsoft 365 Business Premium All applications from the standard plan as well as Azure Information Protection offer better protection against cyber threats. It also includes Microsoft Intune to manage identities, apps, and devices. It is priced at $22 per month per user
Microsoft 365 Enterprise products Similarly, Microsoft brings three enterprise plans that help large companies in greater collaboration. The former are richer in security, compliance, and analytics. You may access the Microsoft 365 enterprise plans here. Starting from $8 monthly for every user under a yearly agreement.

Note this price is in US dollars the regional price in your area may vary. However, the trend remains the same regardless.

Of course, if M365 users pay a markup, they also get other advantages in terms of extra apps and features. And that is where the next level of Microsoft 365 vs Office 365 comparison can be made.

Cloud access security broker: This is an extra level of security to keep your cloud-based data safe and sound. Intruders will find it more difficult to break into data stored under the Microsoft 365 E series plans than their equivalent Office categories. 

Microsoft Entra: It is a new way of user management. It is the upgraded form of Azure AD and is only available to admins whose organizations have deployed the new plans.

Threat protection: M 365 plans give the edge in Antivirus, Firewall, Exploit guard, Credential, guard, Apart from Office 365 E5 no other plan has this enabled. Even there the support is limited.

Microsoft 365 vs Office 365 Comparison

Features Microsoft 365 Office 365
Applications and Other Services It offers a suite of tools that are beyond the Office applications. It includes Windows Enterprise, advanced features focused on the security, and management of tools This provides users with essential applications such as Word, Excel, PowerPoint, and other services that include Exchange, OneDrive, and more. It is the best option for several businesses that need reliable, and cloud-based tools. 
Security Compliance It is designed for organizations with strict security requirements and as such it offers advanced security features which include identity or access management, information protection as well as threat protection. This certainly has some security features, but it lacks the advanced tools that are present in Microsoft 365. For small to medium businesses with basic security needs, this is enough.
Communication and Collaboration Enhances the collaboration among users with the help of several tools such as Microsoft Stream for sharing videos, and Viva Engage for social networking at a corporate level. Several other conferencing capabilities also allow the joining of more attendees.  This offers users with several important collaboration tools such as Teams, SharePoint, and OneDrive. This is ideal for businesses that focus on productivity and do not require any extra social networking features. 
Offline Features With its capability for offline desktop applications, it is one of the best suites out there. It allows you to work when there’s no internet connection available. This is especially helpful for users who engage in local file management or often find themselves without internet access. While mostly hosted online, some plans offer desktop versions of Office apps as well. However, for the most part, it relies heavily on a connection to the Web to be fully operational.
Costs Has a higher cost that is justified given the other features it has such as Windows Enterprise, advanced security features, device management, etc. The price may appear high but then it is worth the price when an organization needs such extras. Is cheaper since it focuses on providing essential productivity tools. Therefore it is ideal for small to medium-sized organizations without complicated IT from a cost perspective.

Microsoft 365 vs Office 365 Comparison Guide for Frontline Edition Plans

The frontline apps are special editions of the Microsoft Business suite. These are cheaper variants that have built-in team subscriptions. All but one O365 F series plan is now terminated.

Office 365 F3 may still be available from third-party vendors and distributors that have legacy stock. However Microsoft may have already given them instructions to forbid any new account creations, so if you are in the market for a frontline edition then it’s best to continue with a Microsoft 365 F series plan. 

If due to a grandfather clause your MSP gave you access to the Office 365 F3 and you wish to change the plan you can do that as well. Before we reveal to you the best way to conduct data transfer during the O365 plan change it’s important that you know which plan to select as the destination.  For that we have a unique approach let’s what it is.

Flow Chart to Select Between Microsoft 365 and Office 365 

Start by analyzing what user demands are, as they are the ones who are going to use the actual product. Moreover, if there is a large majority who are not satisfied they may want you to change the plan altogether. Which is a project on its own. So to avoid unnecessary trouble we suggest that you put your situation through this flow chart. It is designed to help admins pick a plan that matches their requirements.

Microsoft 365 vs Office 365 Comparison Flow Chart

With this flow chart if you find that your current plan is not up to the mark then shift your users. 

Finding the best Microsoft 365 plan for your team

Some of the factors that users should keep in mind are: 

  1. Size — You can start by thinking about how many users would your organization need at the present moment as well as in the long run. If your team is planning on expanding, then you should go for a plan that offers more number of licenses and space to store all the files. 
  2. Type of the Business — While the requirements of most businesses will be covered by the plans that were discussed in the previous sections, Microsoft also offers many plans for nonprofits, frontline workers, as well as educational institutes. If your team is a part of a non-profit organization, then you can explore these possibilities. 
  3. Daily Tasks — You should consider whether you would only need to keep the emails, documents, calendars, and more, or if you would need to make presentations for large meetings regularly. It is important to be aware and understand the daily tasks for your organization to opt for the perfect plan. 
  4. Budget — Microsoft 365 allows users to get started for free and find out the perfect plan for you and your team’s needs. You should also be aware of your budget since the pricing of the plans varies a lot. You can also take stock of the subscriptions available to compare them properly. 
  5. Other Considerations — You should consider, the work mode of your team. Whether they will be working on-premise or remotely, The operating systems that these plans will be used from, and many other things to consider. 

Best Way to Shift Between Microsoft 365 and Office 365

There is a possibility that you already have a subscription to Office 365 E series, but still feel like you need more out of the subscription. It could be a lack of features or any other reason. Moreover, there is always a chance that Microsoft can announce the discontinuation of the remaining Office 365 lineup. These together make a strong enough case to move towards the safer Microsoft 365 E lineup. 

Other than this there are also instances where the extra price of M365 can trigger a reverse exodus. That means users may move from Microsoft 365 back to the still available Office 365 category of plans.

Not to worry, we have assisted countless organizations like yours who bought the wrong plan and wished to move their user data. The tool admins can trust for moving all user data from any Microsoft/Office 365 plan to another is SysTools Software for Office 365 to Office 365 Migration. It comes with an easy-to-use interface and the ability to pull and put all user data in its intended location. 

Here are some quick steps to give you an idea of how the tool works

  • Open, choose endpoints, select workloads, and apply dates.
  • Validate source and destination admin credentials
  • Map user data
  • View, select, prioritize, validate, and start moving the data.

Conclusion

In this tutorial, we provided readers with well-thought-out Microsoft 365 vs Office 365 comparison points. This feature and function level difference should be more than enough to decide on the business suite plan you need. Moreover, if, by chance, you pick the wrong edition and want to shift, we have utility for that as well.

Frequently Asked Questions

Q1. What are some of the key differences between Office 365 and Microsoft 365? 

There is no difference between these two. Microsoft discontinued Office as an independent suite, and now all of the productivity applications are available under Microsoft 365 subscriptions.

Q2. How can I know which subscription is right for my team? 

As you now know, all of the applications come under the Microsoft 365 suite. If your team requires basic productivity tools such as Word, Excel, and PowerPoint, then one of the basic plans is for you. If you are looking for advanced security, organized sharing of files, and SharePoint in addition to productivity tools, then one of the advanced plans is a good fit for you. 

Q3. How can I know which Microsoft tools I would need? 

You can research and read blogs to understand which plan will fit you the best. Sending out an end-user survey is also a good option to understand what types of applications and tools your employees will need to improve their productivity. 

 

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By Mohit Jha

Mohit is a writer, researcher, and editor. Cyber ​​security and digital forensics are the two subjects that keep Mohit out of his seat. In addition, he hopes that the well-researched and thought-out articles he finds will help people learn.