If you work with Microsoft office applications, you’ve likely heard both terms – Office 365 and Microsoft 365. Many users are confused by these terms and wonder if there’s a real difference between them. In this article, we’ll clarify the confusion surrounding these two products once and for all.
The Simple Answer: They Are the Same Thing
Put simply, Office 365 and Microsoft 365 are essentially the same thing. Office 365 is just the name Microsoft 365 had before the rebranding that occurred in April 2020. These are not different products, but the same product with a different name.
If you don’t believe it, you can confirm it directly from Microsoft itself. In plain words, Office 365 = Microsoft 365, and you can consider these terms synonymous. The same applies to the abbreviations O365 = M365, which refer to Office 365 and Microsoft 365 respectively.
Why Did the Name Change?
Microsoft has attempted to explain the reasons for the name change. Various theories suggest the change was made to create buzz (which it achieved), improve search engine rankings (SEO), or simply to cause… a headache for content creators (which it also achieved).
But setting aside conspiracy theories, the 100% accurate answer is: Microsoft changed it because they could.
When Did the Name Change Occur?
The name change was announced one day before April Fools’ Day 2020 (excellent timing, right?) and was implemented on April 21, 2020.
What is Office 365?
Office 365 is the former name for Microsoft’s office application suite and the collaboration platform underneath it.
It includes Microsoft 365 applications such as Word, Excel, Access, and the rest of the suite, along with development and management tools. Depending on the exact license you purchase, it may include Exchange Online, Dynamics 365, Microsoft Intune, various Microsoft Viva types, and a Copilot for every aspect of your work life.
There’s also the Office 365 / Microsoft 365 Personal subscription, which is limited to Microsoft 365 applications.
What is Microsoft 365?
Microsoft 365 is the new name for Office 365.
It’s worth noting that the Microsoft 365 home page, the one you see when you log into your M365 account, was recently renamed to the Microsoft 365 Copilot app. This shows Microsoft’s commitment to using artificial intelligence to influence every imaginable work aspect.
Differences Between Office 365 and Microsoft 365 Licenses
The only point where there’s a real difference between Office 365 and Microsoft 365 is in licensing. While most licenses changed their name from O365 to M365, there are some remaining old Office 365 business packages available, which provide limited access to the office suite. For details, refer to Microsoft’s pricing page.
Evolution of Services Over Time
From the initial release of Office 365 in 2011 until its renaming to Microsoft 365 in 2020, the service has evolved significantly. Initially, Office 365 focused primarily on classic office applications and email. Over time, more services were added, such as Teams, OneDrive, and other collaboration tools.
The renaming to Microsoft 365 reflects a broader approach that includes not only traditional office applications but also security tools, device management, and now artificial intelligence solutions with Copilot.
The Role of Artificial Intelligence in Microsoft 365
The most recent and significant addition to Microsoft 365 is the integration of Copilot, an AI tool designed to help users with various tasks. Copilot can compose text, create presentations, analyze data, and suggest solutions to various problems. It’s integrated into applications like Word, Excel, PowerPoint, and Outlook, providing real-time assistance to users.
Microsoft has invested significantly in artificial intelligence, and Copilot is a key element of its future strategy. The renaming of the Microsoft 365 home page to “Microsoft 365 Copilot app” is indicative of this shift towards artificial intelligence.
Microsoft 365 in Daily Work
For most users, the daily experience with Microsoft 365 involves using applications like Word, Excel, PowerPoint, and Outlook. However, Microsoft 365 offers much more.
Teams has become a central collaboration tool, especially after the COVID-19 pandemic pushed many organizations towards remote work. It allows video calls, instant messaging, file sharing, and real-time document collaboration.
OneDrive provides cloud file storage, allowing users to access their files from anywhere and easily share them with others.
Microsoft has also developed Microsoft Viva, an employee experience platform integrated into Microsoft Teams that includes various components like Viva Connections, Viva Insights, Viva Learning, and Viva Topics.
The Importance of Security in Microsoft 365
A significant element of Microsoft 365, especially for businesses, is integrated security. Microsoft has invested heavily in cloud and application security, offering solutions such as:
- Microsoft Defender for Office 365: Protects against malicious emails, links, and files
- Microsoft Intune: Enables mobile device and application management
- Azure Active Directory (AAD): Provides identity and access management
- Microsoft Information Protection: Helps protect sensitive information, wherever it may be
These security solutions are particularly important in an era where cyber attacks and data breaches are becoming increasingly frequent.
Different Microsoft 365 Packages for Different Needs
Microsoft offers various Microsoft 365 packages to cover different needs and budgets:
For Personal Use and Families:
- Microsoft 365 Personal: For one person, includes Office applications and 1TB OneDrive storage
- Microsoft 365 Family: For up to 6 people, each person gets Office applications and 1TB OneDrive storage
For Small Businesses:
- Microsoft 365 Business Basic: Includes online versions of Office applications, email, and cloud storage
- Microsoft 365 Business Standard: Adds full versions of Office applications
- Microsoft 365 Business Premium: Adds advanced security and device management solutions
For Large Enterprises:
- Microsoft 365 E3: A comprehensive package including applications, services, and basic security solutions
- Microsoft 365 E5: The most comprehensive package, adding advanced security, compliance, and voice communication solutions
Legacy Office 365 Packages:
As mentioned earlier, some old Office 365 packages are still available, mainly for businesses, offering limited functionality compared to Microsoft 365 packages.
Common Misconceptions About Office 365 and Microsoft 365
Despite the simplicity of the name change, several persistent misconceptions exist:
Misconception 1: Office 365 and Microsoft 365 Are Different Products
As we explained, these are the same product with a different name. Microsoft simply renamed Office 365 to Microsoft 365 in April 2020.
Misconception 2: Office 365 Is Older and Less Updated
The fact that someone refers to “Office 365” doesn’t necessarily mean they’re talking about an older version of the product. Many people continue to use the term “Office 365” out of habit, even when referring to the current Microsoft 365 version.
Misconception 3: Microsoft 365 Is More Expensive Than Office 365
There was no immediate price increase as a result of the name change. However, like most products, Microsoft 365 prices have increased over time, independent of the name change.
Frequently Asked Questions
If I Find an Article About “Office 365”, Does It Mean It’s Outdated?
It might be outdated, but not necessarily. You continue to see references to Office 365 across the internet. So, if you encounter Office 365 in articles (or any other material), it could mean any of the following:
- The article is outdated
- The article was created years ago but remains relevant, and readers aren’t bothered by the “retro” name
- The article was updated since 2020, but the old name remained out of fear that SEO ranking would decrease
- The author is stubborn and refuses to change the name, knowing hundreds of administrators agree. Example: The Office365 subreddit has 127,000 members, while the Microsoft365 subreddit has 11,000. Both are active (and have the same moderators)
A quick way to verify if specific content is updated is to check when it was last modified. If no such information exists, you can open the article’s source code (usually you’d use Ctrl + U in a web browser) and scan for dates.
Was There a Price Change Between Office 365 and Microsoft 365?
Remember, O365 equals M365. In other words:
- No, there was no price change immediately after the rebranding
- Yes, there have been price increases in M365 licenses over the last 5 years
To see current prices, it’s recommended to check Microsoft’s pricing pages. As we’ve already mentioned, some old business packages have limited functionality and retain the Office 365 name, so be sure to carefully check prices before purchasing.
Additionally, with the emergence of Viva and Copilot, there are many ways to extend your subscription to gain more features. However, this comes at a cost.
If a Tool Lists “Office 365” as a Supported Platform, Does It Mean It Also Supports “Microsoft 365”?
Usually, the answer is yes. In most cases, seeing “Office 365” is a good sign because you know the solution has been in the market for quite some time.
The reasons for maintaining “Office 365” in a product name or supported platforms list are usually quite simple. It can be quite problematic to change a product’s name and how you refer to it throughout your documentation, especially when most of your customers are more familiar with the old name.
How to Choose the Right Microsoft 365 Package for You or Your Business
Choosing the right Microsoft 365 package depends on various factors such as your organization’s size, specific needs, and budget. Here are some recommendations:
For Individual Users and Families:
- If you’re an individual needing Office applications and cloud storage, Microsoft 365 Personal is a good choice
- If you have a family and multiple people need access to Office applications, Microsoft 365 Family offers better value
For Small Businesses:
- If your business primarily relies on web applications and needs basic email and collaboration services, Microsoft 365 Business Basic might be sufficient
- If you need full versions of Office applications, Microsoft 365 Business Standard is a good choice
- If security is a priority, Microsoft 365 Business Premium offers advanced security solutions
For Large Enterprises:
- Microsoft 365 E3 is suitable for most large businesses, providing a comprehensive set of applications and services
- If you need advanced security, compliance, and voice communication solutions, Microsoft 365 E5 is the best choice
Specialized Packages:
- For educational institutions, Microsoft offers special Microsoft 365 Education packages
- For non-profit organizations, there are special pricing packages for Microsoft 365
It’s recommended to carefully compare different packages and consider your organization’s specific needs before making a decision.
The Future of Microsoft 365
As Microsoft continues to evolve its offerings, we can expect more changes and improvements to Microsoft 365. Some potential developments include:
More AI Integration:
With the introduction of Copilot, Microsoft has shown its commitment to integrating artificial intelligence into its applications. We can expect even more advanced AI capabilities in the future.
Improved Collaboration:
With the increasing trend towards remote and hybrid work, Microsoft will likely continue to improve its collaboration tools like Teams.
More Focus on Security:
As cyber threats become increasingly sophisticated, Microsoft will probably further enhance Microsoft 365’s security solutions.
Potential Pricing Changes:
With the addition of new features and services like Copilot, we might see changes in Microsoft 365’s pricing structure.
In Summary
The renaming of Office 365 to Microsoft 365 represents more of a marketing strategy change than a fundamental product change. Microsoft 365 continues to offer the same core applications and services as Office 365, with the addition of new features and capabilities over time.
For most users, the transition from Office 365 to Microsoft 365 was smooth and did not require significant changes in how they use applications and services. However, confusion around the two names remains, partly due to the continued use of the term “Office 365” by many users and organizations.
As Microsoft continues to evolve Microsoft 365, with the addition of new features like Copilot and Microsoft Viva, the difference between the current Microsoft 365 and the old Office 365 will become more apparent. However, this difference will be due to the product’s evolution over time, not the name change itself.
In conclusion, if you hear the terms “Office 365” and “Microsoft 365”, you can consider them synonymous in most cases. The essential difference is not in the name, but in the specific package and features you choose to meet your or your organization’s needs.
