What Is Microsoft 365? Explained + vs Office 2021

Microsoft 365 is Microsoft’s subscription that combines the familiar Office apps (Word, Excel, PowerPoint, Outlook) with cloud services such as OneDrive storage and continuous updates. You pay monthly or yearly and always work with the latest version. It is the successor to standalone “Office”, but as an ongoing subscription instead of a one-time purchase.

Below you will read what exactly is included in Microsoft 365, how it differs from Office 2021, and when a one-time licence is cheaper than a subscription.

What is included in Microsoft 365?

• The Office apps: Word, Excel, PowerPoint and Outlook, always the latest version.
• Cloud services: 1 TB of OneDrive storage per user and online collaboration.
• Multiple devices: install on PC, Mac, tablet and phone.
• Ongoing updates: new features and security updates at no extra cost.

There are several editions: Microsoft 365 Personal (1 user), Family (up to 6 users) and business plans such as Business Standard.

Microsoft 365 vs Office 2021: subscription or one-time?

	Microsoft 365	Office 2021
Payment	Subscription (monthly/yearly)	One-time, valid for life
Always latest version	Yes	No (stays Office 2021)
OneDrive cloud storage	1 TB included	No
Recurring cost	Yes	No
Best for	Those who want the latest + cloud	Those who want to pay once

In short: if you want the cloud and always the latest features, Microsoft 365 fits. If you just want Word, Excel and PowerPoint without monthly costs, Office 2021 as a one-time purchase is a lot cheaper over time.

Is there a cheaper alternative to Microsoft 365?

Yes. At Licono you buy both Microsoft Office 365 and Office 2021 as a genuine, legally resold licence for a fraction of the official price, with an invoice and instant delivery by email. Prefer no subscription? Choose Office 2021 one-time; still want 365? Buy it here for less.

Frequently asked questions

What is the difference between Microsoft 365 and Office?

Microsoft 365 is the subscription with the Office apps plus cloud and updates. “Office” (such as Office 2021) is a one-time purchase of just the apps, with no subscription.

Is Microsoft 365 free?

No. There is a free web version of Office with limited features, but full Microsoft 365 is paid. Students sometimes get free access through their school.

Do I need Microsoft 365 or is Office 2021 enough?

If you mainly use Word, Excel and PowerPoint and do not want to pay monthly, Office 2021 is enough. If you want 1 TB of cloud and always the latest version, Microsoft 365 is more convenient.

Want to know more about the one-time option? Read whether Office 2021 is a one-time purchase.