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Find the right Microsoft 365 Family or Personal plan for all your devices. Includes AI-powered Office apps, 1 TB of cloud storage and premium mobile features.
Microsoft 365 subscriptions for business include familiar productivity apps, intelligent tools, and security to help your team get more done from anywhere.
Microsoft 365 is the productivity cloud designed to help everyone achieve what matters, in their work and life, with best-in-class Microsoft 365 apps, intelligent cloud services, and advanced security.
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- What's the Difference?
- Microsoft Office: Pros and Cons
- Microsoft 365: Pros and Cons
- Okay, So Which One Costs More?
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Everyone's familiar with the old Microsoft Office ritual. You buy a disc full of Word, PowerPoint, and other Microsoft-branded software, stick it in your computer, and get to work. A few years go by, and your job or classroom requires a newer version of the Office suite, so you go out and blow your savings on another disc. Rinse and repeat.
But the traditional Office bundle is a lot less common than it used to be. Today, many people access Excel, Word, and other software through a Microsoft 365 subscription or the free, browser-based Office Online suite (which is a stripped-down version of Office).
Unlike an Office bundle, which requires a one-time payment of $150 and only works on one computer, Microsoft 365 costs $7 a month, works on all of your computers and mobile devices, and includes collaborative features and perks that don't come with a standard Office bundle. Microsoft launched its 365 service in 2011 to help modernize the Office suite, which hadn't experienced a major overhaul in nearly a decade. The subscription model allows Microsoft to offer constant updates and support for its productivity software, along the with the cloud storage and deep collaborative features made famous by Google's browser-based productivity tools (Google Docs, Drive, Sheets, etc).
Microsoft still sells its traditional Office suite for people who don't want to pay a monthly fee or use the free, stripped-down Office Online tools. But is the Office bundle really that cost-effective? And even if you can save some money by avoiding Microsoft 365, is it worth missing out on the subscription services' exclusive features?
Microsoft
Microsoft Office 2019 and the upcoming Office 2021 suite start at $150 and come with Word, Excel, and PowerPoint. The expanded Office Home and Business bundle, which costs $250, includes the Outlook email and calendar tool on top of the standard Office software. Both versions of the Office suite work on just one computer and includes a few years of bug and security support from Microsoft (7 years for Office 2019, 5 years for Office 2021).
Microsoft
Microsoft 365 Personal, which supports one user on up to five devices at a time, costs $7 a month or $70 a year if paid upfront. It comes with Word, Excel, PowerPoint, Outlook, OneNote, and 1TB of OneDrive cloud storage.
If you want to share these apps with your whole family, you can subscribe to Microsoft 365 Family service for $10 a month or $100 a year paid upfront. Microsoft 365 family covers up to six users, each with 1TB of OneDrive storage and access to 365 apps on five devices at a time. The family plan also unlocks the Microsoft Family Safety app for tracking and managing your kids.
While the monthly fee may be less than ideal for some, the Microsoft 365 service works on any device and comes with a never-ending stream of updates and bug support. It's the best service for people who always want the latest features or need to collaborate with others. Plus, it comes with a few perks that are well worth the $7 to $10 monthly fee.
Microsoft
For those who just want access to Word, Excel, and PowerPoint but don't care about collaborative features or cloud storage, choosing between Office and Microsoft 365 is mostly a matter of price. Of course, Office costs more upfront, but 365 comes with a monthly fee, so deciding which is more cost-effective really depends on how you plan to use the software or how often you plan to replace it.
Let's start with some simple math. Microsoft 365's individual plan costs $7 a month. So if you were to buy the standard $150 Office suite, you would need to use it for 21 and a half months for it to be more cost-effective than Microsoft 365. Individuals who buy the $250 Office Home and Business bundle for Outlook access need to use the software for about 35 and a half months before they start "saving" money. (If you're a business buying Microsoft software for multiple computers, then you would need to stick with Office for even longer before you start "saving" money, as 365 Business starts at just $5 per person per month.)
So unless you use Office for over two years before updating to the latest version (or ditching the software), you aren't saving any money. And until you reach that three-year mark, your savings are marginal at best. Microsoft clearly planned out its pricing strategy here---the company releases a new version of Office every two or three years, so at the end of the day, people who always buy the latest version of Office are paying about as much as Microsoft 365 subscribers.
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- Andrew Heinzman
- Editor
Microsoft 365 subscriptions include a set of familiar Office apps, intelligent cloud services, and world-class security in one place. Find the right plan for you.
Microsoft 365 is a cloud-based suite of software tools designed to help you do more—with best-in-class communication, design, and data management apps, intelligent cloud services, and advanced security.
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