Office 365 vs Microsoft 365. Which is Right for Your Business?

December 6, 2022
Craig Kathman
Sr. Solutions Enablement Manager, Microsoft

Chances are that your business is already utilizing an Office 365 subscription in some capacity. The Microsoft Suite of powerful applications offered through Office 365—including Word, Excel, PowerPoint, and storage through SharePoint and One Drive—meet the everyday needs of companies across industries. As a Microsoft Solutions Partner and certified Microsoft Solutions Partner for Modern Work, CBTS helps companies integrate these solutions into their regular operations as they strive to improve efficiency and collaboration. Recently, Microsoft rebranded Office 365 to Microsoft 365 and added additional features to its offerings. This post will examine the differences and similarities of Office 365 vs Microsoft 365 and provide guidance on choosing the right subscription for your business.

Comparing two essential work productivity platforms

Office 365 is a subscription-based cloud platform that hosts the flagship Microsoft applications like Word, Excel, and PowerPoint, and offers storage through OneDrive. In addition, Office 365 has flexible plans for businesses of all sizes. Note that Microsoft is not phasing out the products offered through Office, simply rebranding and expanding upon their already popular offerings to meet the increasing demand for cybersecurity and compliance.

What is Office 365?

Office 365 is a subscription-based cloud platform that hosts the flagship Microsoft applications like Word, Excel, and PowerPoint, and offers storage through OneDrive. In addition, Office 365 has flexible plans for businesses of all sizes.

Note that Microsoft is not phasing out the products offered through Office, simply rebranding and expanding upon their already popular offerings to meet the increasing demand for cybersecurity and compliance.

What is Microsoft 365?

It can be helpful to think of Microsoft 365 as a “box” into which Office 365 is packed. Microsoft 365 provides access to stellar Microsoft Office Suite apps in addition to advanced security tools, compliance management, and business analytics. Microsoft 365 also comes with Windows 11 Enterprise, which features significant security updates designed to protect data in a hybrid work environment.

Microsoft 365 also features Microsoft’s Enterprise Mobility + Security (EM+S). EM+S is a portfolio of security tools designed to meet the latest threats to cybersecurity. Additionally, it protects against security gaps in mobile and at-home devices.

Key differences between Office 365 vs Microsoft 365

In a nutshell, Microsoft 365 refines what Office 365 already does well and reinforces what was already the best-in-class suite of cybersecurity protections. More new features from Microsoft 365 include:
  • Easy deployment across devices company-wide with Windows AutoPilot.
  • Windows 11.
  • Advanced compliance management with Microsoft Purview.
  • Single-pane-of-glass management of all users and devices.
  • Updated security features utilizing the latest in AI and machine learning to proactively protect your data across your digital estate.
  • Easy management of Identities and Access.
  • Powerful business insights and analytics.

Microsoft 365 Enterprise

Microsoft 365 Enterprise is aimed at larger companies and organizations. It is tailored to allow corporations to work on a single platform while leveraging cutting-edge security tools.

Subscription plans and licenses vary, but two standard licenses include:

Microsoft 365 E3, which includes:

  • Device and application management
  • Identity and Access controls from a single console
  • Threat protection and security
  • Advanced compliance and oversite (via the newly updated Microsoft Purview)

And, Microsoft 365 E5, which includes:

  • Everything included in the E3 plan
  • Advanced analytics and insights
  • Advanced compliance oversight (via the newly updated Microsoft Purview)

Note that both Microsoft 365 and Office 365 have E3 and E5 plans available.

Learn more: Microsoft Licensing Optimization

Learn more: How a certified Microsoft partner can advance your digital disruption

How Microsoft 365 drives business

Microsoft 365 expands and improves on everything you love about Office 365. Its innovative advancements enable businesses to take advantage of:

Vendor consolidation. Consolidate multiple vendor management systems with differing capabilities into a single, streamlined platform. Storing this information all in one place makes it easy to review and analyze existing provider account details.

AI and Machine Learning. Tap into the latest advances in security, compliance, and analytics by utilizing the cutting-edge applications available with M365. These apps simplify navigation of Microsoft platforms and free up time to focus on deep work by automating repetitive tasks. Microsoft AI gives intelligent, contextualized data insights, allowing businesses to make faster, more confident business decisions.

Process improvement. Improve productivity using workflows and dashboards. Microsoft 365 applications enable the automation of simple and complex business processes, for example, using chatbots to process requests for travel booking, organizing leave, ordering lunch, or requesting supplies. And documents can now inherit metadata from associated projects, which enables automatic archiving of content, data, and spaces based on pre-established criteria, keeping systems tidy and easy to navigate.

IT administration, operational, and deployment savings. Manage hardware and software more efficiently so IT can focus on strategy. Microsoft 365 frees up resources in IT departments by streamlining storage and security via a secure cloud solution. Applications are also updated automatically, diminishing the need for an on-prem IT presence.  

Physical and T&E cost displacement. Reduce hard costs, like real estate and travel, through flexible work from anywhere. Microsoft 365 is a powerful solution whether working in the office, from home, or in a hybrid landscape. Collaborate from anywhere with industry-standard apps that are now cloud-based.

Security and governance benefits

Seemingly daily, cyberattacks become more advanced. It is no longer enough for security tools to respond to threats reactively. Instead, cybersecurity must seek out and adapt to new threats proactively. One key benefit of Microsoft 365 vs Office 365 is that its advanced security solutions do just that—seek out security threats before they have a chance to cause harm.

Additionally, governments and oversight bodies are enforcing new compliance standards for security and maintaining industry regulations. Companies across industries face fines or serious security breaches if they fall out of compliance.

Here are a few of the ways Microsoft 365 fortifies cybersecurity:

  • Advanced Microsoft Threat Protection secures identities, endpoints, user data, cloud applications, and infrastructure.
  • AI and machine learning technology not only searches the entirety of the Internet for emerging threats but also roots out potential security weak points throughout the data estate.
  • Microsoft Purview (formerly Azure Purview) is a toolkit designed to address the growing complexity of compliance and managing data enterprise-wide.

Switch with expert guidance from CBTS

It is a challenge to determine the best Microsoft plan for your business. The nuances between the various Office 365 vs Microsoft 365 plans are layered and complex.   

CBTS has more than 16 years of experience as a certified Microsoft Cloud Solutions Partner. We specialize in integrating a wide range of Microsoft platforms to ensure your enterprise sees the maximum benefits. Our certified Microsoft Professionals have the know-how to help your company make the switch to Microsoft 365 painless, migrate to a new licensing provider, review existing licensing contracts and licensing, and make recommendations on future utilization requirements.

Learn more about how CBTS can guide you through the process and make the most of your Microsoft licensing.

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