Which Microsoft Office to Buy - How to choose Microsoft Office plans

As a Microsoft Software Reseller, we encounter several questions about which Microsoft Office one needs - for Mac, Windows or just which edition. In this guide, we discuss he various plans that you can purchase.

Microsoft Office editions vs Microsoft Office versions

Microsoft Office editions and versions often get confused, but they refer to different aspects of the Office software suite.

Understanding these differences can help you choose the right Office package for your needs, whether you're a home user, student, small business owner, or part of a large enterprise.

Here's a clear explanation of the differences between Microsoft Office editions and Microsoft Office versions:

Microsoft Office Versions

Versions refer to the chronological updates and releases of Microsoft Office over time. Often, each version represents a new iteration with added features, improved functionality, and updated user interfaces. Some notable versions include:

Microsoft Office 365 (ongoing subscription; Office 365 is now Microsoft 365)
Microsoft Office 2024 (not released yet. Rumoured to be released in 2024)
Microsoft Office 2021 (released in 2021)
Microsoft Office 2019 (released in 2018)
Microsoft Office 2016 (released in 2015)
Microsoft Office 2013 (released in 2013)
Microsoft Office 2010 (released in 2010)
Microsoft Office 2007 (released in 2006)
Microsoft Office 2003 (released in 2003)
Microsoft Office XP (released in 2001)
Microsoft Office 2000 (released in 1999)
Microsoft Office 97 (released in 1996)
Microsoft Office 95 (released in 1995)

Microsoft Office Editions

Editions refer to the different Office Suites based on the packages or bundles of Office applications included in them tailored to various user needs and market segments.

Each Microsoft Office edition might include a different combination of Office applications and services.

The common Microsoft Office editions are:

1. Microsoft Office Home and Student

Typically includes core applications like Word, Excel, and PowerPoint.
Designed for home users and students.
Available for PC/Windows and Mac

2. Microsoft Office Home and Business

Includes applications from the Home and Student editions, plus Outlook.
Designed for small businesses and home users who need email and calendar capabilities.
Available for PC/Windows and Mac

3. Microsoft Office Professional

Includes applications from Home and Business, plus Publisher and Access.
Aimed at business users who require additional database and desktop publishing capabilities.

4. Microsoft Office Professional Plus

Includes all the applications in the Professional edition, plus additional services like Skype for Business.
Often available through volume licensing for enterprises.

5. Microsoft 365 for Home

Options include: Microsoft 365 Personal or Microsoft 365 Family

A subscription-based service that includes all Office applications and additional cloud services like OneDrive and Microsoft Teams.
Offers continuous updates and multiple device support.

6. Microsoft 365 Business/Enterprise

Support your enterprise with powerful tools. Create, share, and collaborate from anywhere on any device using the cloud-based suite of productivity apps and services available with Office 365 and Microsoft 365.
Options include Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, and Microsoft 365 Apps for Business. Microsoft 365 Enterprise plans Microsoft 365 E3 and Microsoft 365 E5. Office 365 E1, Office 365 E1, Office 365 E3, and Office 365 E5.
Subscription plans that include Office applications and advanced security, device management, and business services.
Tailored for small to large businesses with varying needs.

7. Other Microsoft Office Options

Microsoft offers additional Office 365 and Microsoft 365 plans for:

Education: Microsoft 365 Education, with AI-powered products, offers a suite of student-centered solutions that help create an equitable learning environment for all and help students succeed in the classroom and beyond. Find which plan is right for your institution below.

Microsoft 365 A1 - A simple, one-time-per-device learning solution for modern workloads. Save time by managing all devices in a single dashboard.
Microsoft 365 A3 - The right solution for institutions that need all the A1 features, plus desktop apps, advanced security, and analytics.
Microsoft 365 A5 - Our most comprehensive plan features everything A3 offers, plus streamlined licensing, security, and management tools.

Government: Office 365 Government G3, Office 365 Government G5; Microsoft 365 Government G3, Microsoft 365 Government G3. Government plans are designed for the unique needs of government organizations. They provide all the features and capabilities of Microsoft 365 services in a segmented government cloud community that enables organizations to meet U.S. compliance and security standards.
Nonprofit organizations: Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium for small and medium non-profits. Microsoft 365 E3 and Microsoft 365 E5 for large nonprofits. Power your nonprofit with Microsoft 365 grants and discounts. Microsoft Tech for Social Impact is dedicated to providing affordable and accessible technology and tools to help nonprofits of all sizes achieve their missions. That’s why we offer grants and discounts for our products and services to eligible nonprofits around the world.
Frontline workers: Microsoft 365 F1 and Microsoft 365 F3. Transform the frontline workforce with Microsoft 365. Simplify processes, unify communication tools, and engage frontline workers in a secure, all-in-one platform with Microsoft 365.

What is the best version of Microsoft Office to buy?

Most people who ask this question actually mean, “What is the best edition of Microsoft Office to buy?”

So, What is the best edition of Microsoft Office to buy?

The answer depends on what you want to use MS Office for, as we’ve noted above.

If you are a student, you can go for Office Home & Student or Microsoft 365 Personal/Family. If you run a small business, you can use Office Home & Business or Microsoft 365 Business/Enterprise. If you are a professional or enterprise, you can buy Office Professional or Office Professional Plus or Microsoft 365 Business (Enterprise education).

There are Microsoft 365 plans for home and personal use and small and mid-sized businesses, large enterprises, schools, and non-profits. Find here the Best Version of Office 365 to Download or Buy.

Microsoft Office: The options

Here is how to choose Microsoft Office editions:

Microsoft Office for personal use or learning

Office Home & Student: One-time purchase for use on one computer; includes Word, Excel, PowerPoint, and OneNote.
Microsoft 365 Personal: Subscription service per month or per year (1 user, multiple devices); includes Word, Excel, PowerPoint, OneNote, Outlook, OneDrive, and Teams.
Microsoft 365 Family: Subscription service per month or per year (6 users, multiple devices); includes Word, Excel, PowerPoint, Outlook, OneDrive, Teams, and Family Safety.

Microsoft Office for small businesses

Office Home & Business: One-time purchase for use on one computer; includes Word, Excel, PowerPoint, and Outlook.
Office Professional: One-time purchase for use on one computer; includes Word, Excel, PowerPoint, Outlook, Publisher, and Access; works with Teams.
Microsoft 365 Apps for business: subscription service per use per month/year (up to 300 users); includes Word, Excel, PowerPoint, Outlook, OneDrive, Publisher, and Access.
Microsoft 365 Business Basic, Standard or Premium: subscription-based service per user per month/year plans (up to 300 users); tools included depend on the subscription level. Desktop versions of Word, Excel, and other Office apps require a Standard plan or higher; the Basic plan offers only web and mobile versions. All plans include Exchange email hosting, OneDrive, and SharePoint. The Premium plan adds advanced security and management features.

Microsoft Office for enterprises

Office LTSC: This edition of MS Office LTSC (Long Term Servicing Channel) is available only through volume licensing. There are Office 2021 LTSC and Office LTSC 2019. It’s designed for regulated devices that can’t accept updates for security reasons and for systems that don’t connect to the internet. (This edition is the only non-subscription version of Office available for large organizations.) It includes Word, Excel, PowerPoint, Outlook, OneNote, Access, and Publisher.
Microsoft 365 Apps for enterprise: Subscription service per user per month/year (up to 5 devices per user) with annual commitment required; includes Word, Excel, PowerPoint, Outlook, Teams, OneDrive, OneNote, Access, and Publisher.
Office 365 E1, E3, and E5: Subscription plans per user/month or per use/year with annual commitment required; tools included depend on the subscription level. Desktop versions of Word, Excel, and other Office apps require an E3 plan or higher; the E1 plan offers only web and mobile versions. All plans include Exchange Online, OneDrive, SharePoint Online, and additional enterprise services. The E5 plan adds advanced security, compliance, and management features.
Microsoft 365 E3 and E5: Subscription plans per user/month; annual commitment required; these plans offer most of the same features as the Office 365 E3 and E5 plans, and also include Windows and additional Microsoft services such as Visio.

Want to compare Office 2021 vs Microsoft 365?

Office 2021 vs. Microsoft 365: What to consider

Microsoft Office plans and pricing
How you pay for Office
How each version of Office is serviced
How Office hooks up with cloud services

Microsoft Office perpetual license vs Microsoft 365 Office as a service

Microsoft offers two methods for acquiring Microsoft Office:

Microsoft Office perpetual license
Microsoft 365 Office as a service

Microsoft Office perpetual license

Whether you buy a single copy of Office perpetual license (such as Office 2021 or Office 2019) in a retail outlet, a Microsoft reseller such as SoftwareKeep, or download hundreds of seats via volume licensing, Microsoft calls this is a “one-time purchase.” Why?

Because you pay only once, not every month.

Labels like “perpetual,” which have been widely used, technically note the type of license rather than payment methodology. But in this case, the kind of license is tied to whether it was bought outright or simply “rented.”

This is when “…you pay a single, up-front cost to get Office applications for one computer.” You pay the entire purchase price before you get the software. The license will run perpetually with no expiration date, and users may run the suite for as long as they want. Pay for Office 2021 this year and use it for the next seven years. Fine, as long as there is hardware compatibility.

Microsoft 365: Office as a service

Microsoft 365 is a subscription service paid monthly or annually. It’s the purchase method Microsoft would prefer you choose.

In many cases, Microsoft offers a discount, sometimes a tempting one, for going with the annual payment plan over the monthly one. And Microsoft always sweetens the pot by offering more apps in these subscriptions than you get with the perpetual license products.

All Microsoft 365 Enterprise plans, from Enterprise E1 to E5, require an annual commitment.

And like all other SaaS products, if your don’t renew your subscription, your SaaS provision ends.

Office 365 vs Microsoft 365

Office 365 and Microsoft 365 are both productivity suites from Microsoft, but they differ in scope and offerings. Here’s a comparison to help you understand the differences:

Office 365

Primary Focus: Office 365 is primarily focused on providing cloud-based versions of traditional Microsoft Office applications, such as Word, Excel, PowerPoint, and Outlook.
Business Plans: Office 365 offers plans tailored for businesses, providing tools like Exchange Online, SharePoint Online, and Microsoft Teams.
Personal and Family Plans: It also includes plans for individuals and families, which allow the use of Office applications on multiple devices.
Licensing: Subscription-based service with monthly or annual fees. Each plan has specific features and a defined number of users allowed.
Updates: The subscription includes regular application updates, ensuring users have the latest features and security improvements.

Microsoft 365

Broader Scope: Microsoft 365 includes everything in Office 365 and adds additional features such as advanced security, device management, and more comprehensive cloud services.
Enterprise Solutions: Offers advanced security and management tools suitable for larger organizations, including Enterprise Mobility + Security (EMS) and Windows 10 Enterprise.
3. Personal and Family Plans: Similar to Office 365, it offers plans for personal and family use but with additional benefits like Microsoft Defender, OneDrive storage, and access to Microsoft Family Safety.
Licensing: This is also subscription-based but typically at a higher price point due to the added features and services. There are different tiers, such as Microsoft 365 Business Basic, Business Standard, and Business Premium, each catering to different needs.
Holistic Approach: Aimed at providing a comprehensive ecosystem that integrates seamlessly across devices and platforms, promoting productivity, collaboration, and security.

How each MS Office version is serviced

Although payment plans define one difference between perpetual license MS Office plans and Microsoft 365, the product development and release are ultimately more important to users.

Perpetual license MS Office is a traditional software — tools that don’t change much until the next major version, including servicing. Howere, Microsoft releases monthly security and quality updates for the Office perpetual license.

But Perperual MS Office doesn’t get continually upgraded features, security updates, and functionality like Microsoft 365. What you get when you buy the Office Suite, feature-wise, is it. If you want the new features and updates, you’ll have to buy a newer version of Microsoft’s perpetual license or switch to Microsoft 365.

One other important note:

Microsoft Office 2021 and Office LTSC 2021 will be supported with security updates only through Oct. 13, 2026. Since it’s relase was in 2021, that’s just five years of support, down from seven years in MS Office 2019 and 10 years in prior MS Office releases. In contrast, with Microsoft 365 subscriptions, support never runs out — as long as you keep paying, of course.

How Microsoft Office versions hook up with cloud services

One key reason to choose Office perpetual license (such as Office 2021) over Office subscription (such as Microsoft 365) is internet access.

So, for security reasons, if you don’t have reliable access to the Internet (and cloud), you can’t connect to your Office suite.

So, perhaps, internet access is one main reason why Microsoft can’t force us all to subscribe to Microsoft 365.

And, in standard use, Microsoft 365 stops working if it can’t connect to the internet for 30 days.

Perpetual license Office versions don’t rely as heavily on an internet connection to operate, save files, and self-update. You can connect it when you have access and work offline when you don’t.