Choosing the right productivity suite is crucial for small and medium-sized business owners, among which Microsoft’s offerings remain popular. Currently, there are two popular options: Microsoft 365 and Office 2021. Understanding the differences between these two — specifically, their unique features, pricing models, and functionalities — can help you make an informed decision that aligns with your business requirements.
Microsoft 365: Cloud-based and highly flexible
Microsoft 365 is an extensive suite of productivity tools that brings together a diverse range of applications and cloud-based tools. Unlike the traditional Office suite, Microsoft 365 is offered on a subscription-based model, providing users with regular updates and access to the latest features.
A key benefit of Microsoft 365 is that it is cloud-based. This means that your files and data are securely stored in the cloud, enabling you to conveniently access them from any internet-connected device, regardless of your location. For many businesses, this flexibility is invaluable particularly for remote employees.
Microsoft 365 includes popular applications, such as Word, Excel, PowerPoint, Outlook, and OneNote, along with other services like Microsoft Teams, SharePoint, and OneDrive. These integrated tools facilitate efficient teamwork, document sharing, real-time collaboration, and project management. Microsoft 365 also has advanced security features, data encryption, and compliance capabilities.
When it comes to pricing, Microsoft 365 offers various subscription plans tailored to different business needs. These plans typically include different levels of access to applications, storage space, and additional services. The subscription-based model allows for scalability, as you can easily add or remove licenses as your organization grows or changes.
Office 2021: Versatile and efficient
On the flip side, Office 2021 is the latest version of Microsoft’s standalone software suite. Unlike Microsoft 365, Office 2021 follows a traditional software purchase and licensing model, where you make a one-time payment to own the software outright. This model appeals to businesses that prefer a one-time investment without ongoing subscription fees.
Office 2021 includes popular Microsoft applications similar to the Microsoft 365 suite. What sets Office 2021 from its cloud-based counterpart is its offline functionality. As the software is installed directly on your device, you can work on your files without the need for an internet connection.
Note that Microsoft 365 also offers offline versions of its applications that you can download and install on your PC. The process for doing so may vary depending on whether you have a home or a business plan.
Office 2021 is available in different editions, such as Office Home & Student 2021, Office Home & Business 2021, and Office Professional 2021, each catering to specific user requirements. These editions may vary in terms of included applications, licensing terms, and pricing.
Key differences between Microsoft 365 and Office 2021
Microsoft 365 and Office 2021 may seem similar at first glance, but there are significant differences that can impact your business's productivity and collaboration capabilities. Understanding the following distinctions will help you make an informed choice between the two.
- Regular updates and access to new features: Microsoft 365 operates on a subscription model, meaning you receive regular updates and access to the latest advancements, bug fixes, and security patches as they are released. In contrast, Office 2021 is a one-time purchase with no access to future updates unless you purchase a new version.
- Cloud storage and mobility: Microsoft 365 leverages cloud technology, providing you with cloud storage through services such as OneDrive. This allows you to securely store and access your files from anywhere, using any device with an internet connection. Because it’s an offline software suite, Office 2021 requires your files to be stored locally on your device, limiting mobility and remote access.
- Collaboration and communication capabilities: Microsoft 365 excels in facilitating collaboration and communication within teams. Applications such as Microsoft Teams enable real-time collaboration, file sharing, video conferencing, and instant messaging. Office 2021, on the other hand, lacks built-in collaboration tools and is therefore best for individual work or businesses that don’t require frequent collaboration.
- Security and compliance features: Microsoft 365 provides strong security features, featuring advanced threat protection, data encryption, and compliance tools to ensure your business data’s safety and integrity. Office 2021 lacks some of these security features, which is something to keep in mind if your business handles sensitive information or operates in regulated industries.
- Integration with other Microsoft services and third-party apps: Microsoft 365 integrates seamlessly with other Microsoft services and applications, creating a unified ecosystem. This integration extends to popular third-party apps, allowing you to streamline workflows and increase productivity. Office 2021, being a standalone software suite, offers limited integration capabilities compared to Microsoft 365.
Consider these key differences when evaluating your business's needs and priorities. If real-time collaboration, mobility, and regular updates are critical, Microsoft 365 may be the better choice. However, if you prefer a one-time purchase, offline functionality, and have minimal collaboration requirements, Office 2021 could be a suitable option.
We can help put your business in the cloud with productivity solutions that are most suitable for your needs. Get in touch with our team.
