We’ve found much confusion about what’s in Microsoft Office. Questions include:

  • What’s the difference between Office 365 and Office 2016?
  • What are all the different versions of Office 365?
  • The pricing is confusing, can you explain it?

Microsoft publishes an enormous amount of information, but in many ways all that does is serve to further confuse people.

So we thought we’d try to cut through this all and explain, in as simple terms as possible, what all the versions are. We’ve focussed on what’s in the “Business Premium” version, which is the one we recommend to most organisations. Pricing shown was current as of 1st July 2017 in the UK and include VAT for Consumers but exclude VAT for business and enterprise.

What’s the difference between Office 2016 and Office 365?

Office 2016 is the latest version of the traditional Microsoft Office. It’s the update from Office 2013 for PC and Office 2011 for Mac. For a one-off payment you get desktop versions of apps to install locally, no support and you pay for subsequent upgrades.

Office 365 is a subscription model for Office which also includes many cloud and hosted capabilities. Originally targeted at business and enterprise there are now versions of Office 365 for home and student use too. You can mix and match editions of Office 365 which all include future upgrades and 24/7 support.

What versions of Office 365 are available?

There are three fundamental editions of Office 365: Home (Consumer & Student), Business (up to 300 users) and Enterprise, and there are multiple versions of each. We list them with their main features, and links to the relevant pages on the Microsoft website, below.

Consumer Editions

Link to relevant Microsoft Office Home site

Link to relevant Microsoft Office for Education site

Office 365 Home

  • Installed versions of: Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access
  • Hosted versions of: OneDrive Personal (1TB per user) & Skype
  • Up to 5 users (one phone and one PC or Mac each)
  • £79.99 per year or £7.99 per month

Office 365 Personal

  • Installed versions of: Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access
  • Hosted versions of: OneDrive Personal (1TB) & Skype
  • Single user on one PC or Mac
  • £59.99 per year or £5.99 per month

Office 365 for Education

  • Word, Excel, PowerPoint, OneNote and Teams
  • Single qualifying student with valid academic email address
  • free (yes, really)

Business Editions

(for organisations up to 300 users)

Link to relevant Microsoft Office 365 Business site

Office 365 Business Essentials

  • Web-only versions of Word, Excel, Outlook & PowerPoint
  • No desktop software
  • Hosted services of: Exchange, Teams, OneDrive for Business (1TB), Skype and Skype for Business
  • One license covers one user for 5 phones, 5 tablets & 5 PCs
  • 24/7 phone & web support
  • £45.60 per annum or £4.50 per month

Office 365 Business

  • Web versions of Word, Excel & Powerpoint
  • Desktop versions of Outlook, Word, Excel, PowerPoint, OneNote, Publisher & Access
  • Hosted OneDrive for Business (1TB)
  • One license covers one user for 5 phones, 5 tablets & 5 PCs
  • 24/7 phone & web support
  • £94.80 per annum or £9.60 per month

Office 365 Business Premium

  • 24/7 phone & web support
  • Latest versions and updates of all O365 software including:Word, Excel, PowerPoint, Outlook, OneNote, Access and Publisher
  • Run applications both on the desktop and in the cloud
  • License for up to 5 PCs or Macs, 5 phones and 5 tablets for every user
  • Easy to administer Exchange email server online with a 50GB file limit per user
  • Access your cloud storage from anywhere:
    • Up to 1TB of personal data with OneDrive, synchronised onto your local device(s) so you can access it even when you’re offline
    • 1TB SharePoint team data + 0.5GB/user
    • Team folders can by synchronised with your OneDrive for offline access
    • Share documents with a link both internally and externally – no more file attachments or enormous files in Exchange
    • Previous versions of files in the cloud are retained for 14 days and can be rolled back to protect against ransomware attacks
  • Automate processes and tasks with Microsoft Flow
  • View & analyse data interactively with PowerBI
  • Easily find & deliver information with Delve & Graph
  • Collaborate with tools including:
    • Planner – group planning, scheduling & task management
    • Microsoft Teams – group chat, file sharing, meetings & telephony
    • Skype
    • Skype for Business
    • Yammer – group chat & instant messaging
  • Predictable per-user license costs, no unexpected upgrade or support fees
  • £112.80 per annum or £11.30 per month

Enterprise

Office 365 Enterprise F1 (Front Line)

Link to relevant Microsoft Office 365 F1 page

  • Online only versions of apps
  • Email & calendar – 2GB per user – attachments limited to 150MB
  • Skype, Teams, Yammer, Word, OneNote, PowerPoint & Excel
  • StaffHub, Sway and (coming soon) PowerApps & Flow
  • OneDrive for Business (2GB per user)
  • 24/7 phone & web support
  • £36 per annum

Office 365 Enterprise E1

Link to relevant Microsoft Office 365 E1 page

  • Web versions of all applications
  • Desktop version of Outlook only
  • Email & Calendar – 50GB per user
  • Hosted Exchange, OneDrive for business (1TB), Teams, Skype, Skype for Business, Yammer, Graph, StaffHub, Planner, Sway, Delve
  • 24/7 phone & web support
  • £72 per annum

Office 365 Enterprise E3

Link to relevant Microsoft Office 365 E3 page

  • Full desktop versions of Word, Excel, PowerPoint, Outlook, OneNote, Publisher, Skype for Business, Teams & Access
  • Online versions of all the apps
  • Hosted Exchange, OneDrive for Business (1TB), Teams, Yammer, Planner, Sharepoint & Teams
  • Up to 5 PCs, phones & tablets per person, including Macs
  • Advanced Email archiving
  • Document Rights management
  • Enterprise app management
  • eDiscovery
  • £211.12 per annum

Office 365 Enterprise E5

  • As E3 plus advanced eDiscovery, integrated telephony and some other advanced tools
  • £369.60 per annum