Making Sense of Microsoft 365 and Office 365

Transitioning from Office 365 to Microsoft 365 feels a bit like trying to jump onto a moving train. As a long-time Microsoft user, you might be wondering:

  • What exactly is Microsoft 365?
  • How is it different from Office 365 I‘m used to?
  • Should I upgrade from Office 365 to Microsoft 365?

This guide will explain everything in plain English – no tech jargon. You‘ll understand:

  • The history behind Microsoft 365 and Office 365
  • How Microsoft 365 goes beyond Office 365
  • Key benefits and capabilities of Microsoft 365
  • Whether to upgrade from Office 365 to Microsoft 365

By the end, you‘ll feel empowered to make the right productivity software decision for your needs. Let‘s get started!

The Evolution from Office 365 to Microsoft 365

First, let‘s travel back in time to understand the progression from Office 365 to Microsoft 365…

What Was Office 365?

Office 365 originated in 2010 as a cloud subscription version of Microsoft Office apps like Word, Excel, PowerPoint and Outlook. It provided:

  • Always up-to-date Office desktop and web apps
  • Business plans with Exchange email and online storage
  • User-friendly collaboration with SharePoint and Teams

By 2011, Office 365 was made available to all businesses and consumers. It offered a cost-effective way to access the latest Office tools over the Internet.

For almost a decade, Office 365 continuous to enhance capabilities for enterprise customers. But the consumer plans remained focused on basic Office app access.

Introducing Microsoft 365

Then in 2017, Microsoft rebranded Office 365 with additional features as "Microsoft 365."

Microsoft 365 essentially added enterprise-grade security, device management and Windows OS licensing onto Office 365.

Over the next few years, Microsoft began shifting business and consumer Office 365 plans over to new Microsoft 365 branding and pricing.

As of 2023, the transition is complete – all Office 365 subscriptions have been upgraded to Microsoft 365.

Based on name alone, Microsoft 365 builds on Office 365 by bundling "Microsoft" cloud services:

  • Microsoft Office apps – Word, Excel, PowerPoint, Outlook
  • Microsoft Windows – Operating system licensing
  • Microsoft Enterprise Mobility – Security, device management

But how exactly does Microsoft 365 move beyond Office 365? Let‘s compare the capabilities…

Microsoft 365 vs. Office 365 – A Capability Comparison

While Office 365 provided access to Office apps, what sets Microsoft 365 apart is the additional tools for security, compliance and mobile device management across an organization.

Here is a capability comparison of Microsoft 365 vs legacy Office 365 plans:

CapabilityMicrosoft 365Office 365
Office desktop appsYesYes
Online Office web appsYesYes
Exchange emailYesYes
Teams collaborationYesYes
OneDrive cloud storage1 TB1 TB
Windows OS licenseYesNo
Endpoint security toolsYesAdd-on cost
Mobile device managementYesAdd-on cost
Compliance controlsYesAdd-on cost

While Office 365 focused on core productivity through Office apps, Microsoft 365 extends capabilities deeper into the enterprise infrastructure.

Let‘s explore some of those Microsoft 365 benefits and use cases next…

Top 5 Benefits of Microsoft 365 for Business

Microsoft 365 comes with a robust set of cloud-based tools to enhance productivity, security and data protection across an organization.

Here are five key Microsoft 365 benefits for businesses:

1. Enhanced Data Security

Microsoft 365 Business Premium and Enterprise plans incorporate Azure Information Protection and other tools to safeguard sensitive business data. Capabilities include:

  • Data loss prevention policies
  • Email/file encryption
  • Access controls by user/group
  • Activity logging and alerts

According to Forrester Research, Microsoft 365 customers see $8.5M in benefits over 3 years related to protection against cyberthreats.

2. Simplified Compliance

With built-in features like eDiscovery, legal hold, retention policies and data investigations, Microsoft 365 reduces overhead for regulatory compliance.

Compliance capabilities in Microsoft 365 E5 deliver 529% ROI over 3 years according to Forrester. Much of these capabilities required separate purchases as Office 365 add-ons previously.

3. Unified Endpoint Management

Microsoft 365 includes cloud-based tools for managing and securing employees‘ devices and apps across an organization. Capabilities include:

  • Identity and access controls
  • Multi-factor authentication
  • Endpoint protection policies
  • Conditional app access rules

With everything integrated through a unified Microsoft 365 console, IT teams can reduce endpoint security costs by over 60% according to research.

4. Seamless Teamwork Enablement

Between Microsoft Teams, Exchange, SharePoint and OneDrive, Microsoft 365 empowers seamless collaboration across groups. Employees can:

  • Host online meetings with screen sharing
  • Have conversations via chat/video calls
  • Store files securely in the cloud
  • Access email and calendars on the go

As a result, 83% of employees state Microsoft 365 apps like Teams and SharePoint improve collaboration and productivity.

5. Windows 10/11 Enterprise Management

With Microsoft 365 E3/E5 licensing, organizations receive advanced management capabilities for deploying Windows 10 Enterprise such as:

  • Cloud configuration and provisioning
  • Windows Update for Business
  • Remote wipe and device recovery
  • Enhanced monitoring and analytics

Altogether, Microsoft 365 serves as a cloud-based support system surrounding your workforce to keep them productive, collaborative and secure.

Next, let‘s explore Microsoft 365 pricing and plan options…

Microsoft 365 Subscription Plans and Pricing

Microsoft 365 is available in a variety of subscription plans oriented toward home users, small/mid-size businesses, and large enterprise organizations.

Here is an overview of popular Microsoft 365 pricing:

Microsoft 365 PlanPricingBest For
Personal$6.99 per monthIndividuals
Family (up to 6)$9.99 per monthHouseholds
Business Basic$5 per user/monthSmall teams
Business Standard$12.50 per user/monthMedium businesses
Business Premium$20 per user/monthMid-size/large orgs
E3$32 per user/monthLarge enterprises
E5$57 per user/monthComplex enterprises

Microsoft 365 plans differ primarily based on:

  1. Number of Office application entitlements
  2. Advanced security tools
  3. Cloud compliance capabilities
  4. IT-focused device and app management

Generally, Microsoft 365 Business and Enterprise offerings provide the full suite of productivity apps, collaboration tools, security capabilities and ongoing innovation.

But now the key question…

Should You Upgrade from Office 365 to Microsoft 365?

If you currently subscribe to Office 365 for home or work use, should you upgrade to Microsoft 365?

For most businesses and consumers today, upgrading provides clear benefits:

For organizations:

  • More robust tools for data protection
  • Reduced cybersecurity overhead
  • Streamlined IT with cloud device management

For households:

  • Full Office app suite with 1 TB storage
  • Includes Windows 10/11 licenses
  • Low monthly cost

However, if you have specific legacy app dependencies on earlier stable Office 365 builds, maintaining status quo may be preferred.

But for majority of users, Microsoft 365 unlocks more capabilities for productivity and collaboration secured by enterprise-grade management and security all in one intelligent solution.

The Future Looks Bright with Microsoft 365

With Office 365 fully transitioned to Microsoft 365 now, Microsoft has committed to regular updates and new features across Windows, Office apps, cloud storage, security tools and more.

Some innovations like bringing full Office app functionality even offline and integrating Teams directly into main Office apps aim to keep Microsoft 365 capabilities on the cutting edge.

Meanwhile, artificial intelligence capabilities in Microsoft 365 remove manual overhead. For example, Playbacks in Teams lets the app automatically create shareable meeting recaps and task summaries.

Thanks to the universal extensibility built into Microsoft 365, developers also have the ability to build custom apps and tools that interoperate across your Microsoft cloud ecosystem.

With innovations emerging across Windows OS, Edge browser, Outlook, OneDrive, Microsoft Teams and more, Microsoft 365 continues accelerating productivity and user experience into the future.

While change can be difficult when adjusting to new concepts like Microsoft 365, recognizing the tangible benefits for home and work use cases makes the business decision clear for most organizations.

Key Takeaways About Microsoft 365 vs Office 365

Here are some top things to remember when sorting through Microsoft 365 and Office 365:

Microsoft 365

  • Bundles Office 365 + Enterprise Security/Management
  • Offers identity and access controls with cloud device management capabilities
  • Comes in a variety of plans tailored toward consumers and businesses

Office 365

  • Primary focus was subscription access to Office productivity apps
  • Lacked integrated management and security tools
  • Now fully transitioned to Microsoft 365 in 2023

Benefits

  • Microsoft 365 enhances collaboration while securing devices, apps and data
  • Delivers ROI tied to higher productivity and lower IT overhead

By understanding capabilities, use cases and benefits, you can determine if Microsoft 365 or legacy Office 365 plans are the right fit. Any questions, feel free to ask!

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