What Is Microsoft 365? (All You Need To Know)

Recently, Microsoft has been constantly growing its user count for its cloud-based product, Office 365.  Furthermore, in the year, 2020, Microsoft rebranded its Office 365 as Microsoft 365, so now, both the company’s home and business offerings fall under the same name. 

However, you might be wondering what the difference between Microsoft 365 and Office 365 is. Are there any new features? And what exactly is this new Microsoft 365? In this article, you will learn the answers to these questions and many more!

What Is Microsoft 365 In 2024?

Microsoft 365 is a cloud-based subscription service for all different users in 2024. Furthermore, this service includes Office applications, cloud storage, and other features depending on the plan you choose. No doubt, there is a plan for every individual, whether you are using it for school, a non-profit organization, or even a large, medium, or small business.

Keep reading if you would like to learn everything you need to know about Microsoft 365 before you subscribe!

What Is Microsoft 365?

Microsoft 365 is simply a rebranded version of Microsoft’s Office 365 program. Furthermore, the program is a cloud-based subscription service for both home and business users.

Additionally, each plan includes different things depending on the one you choose; however, included in every plan are Office applications, cloud storage, and other features.

Therefore, you can be sure that there is a plan that will work perfectly for you whether you are a student, an individual, a small or medium-sized business, a large corporation, and more.

What Is The Difference Between Microsoft 365 And Office 365?

Microsoft 365 used to be a business product made by Microsoft, which included Office applications. 

Furthermore, Microsoft 365 was the highest tier of the company’s business plans, with Office 365 Business Essentials and Premium plans below that. 

However, in early 2020, Office 365 Home and Personal plans and Office 365 Business plans now fall under the same name, which is known as Microsoft 365. 

Microsoft’s name change was designed, in part, to help its business customers to have a better understanding of which plan would work best for them.

Additionally, the company promoted this rebrand as a “new name, same great value, same price.”

Therefore, if you were already subscribed to Office 365 for business or personal use, you do not have to do anything, as your subscription will automatically switch to Microsoft 365. 

If you are not familiar with the plans that are currently available and want to know which option is best for you, you’ll want to pay attention to the next part of this article.

What Are The Different Microsoft 365 Plans?

What Are The Different Microsoft 365 Plans?

The normal Office applications such as Word, PowerPoint, Excel, Outlook, Access, and Publisher come with all Microsoft 365 plans for both home and personal use. 

Along with these applications, you will also get cloud-based features that allow you to collaborate on documents with others in real time.

Plus, you will get extra online storage via OneDrive.

Additionally, there is a Microsoft 365 Family plan that will work great for groups of up to 6 people, who will be able to share one subscription and access it on multiple devices.

Furthermore, Microsoft 365 is a subscription service which means you’ll always have the latest features, fixes, and security updates at no extra cost. 

Below, is a chart of the different plans that are currently available.

Plan Price Features Usage
Personal $59.99/ year or $5.99/ month Office apps including Word, Excel, PowerPoint, Outlook, Access, Publisher, and OneNote. 1 terabyte of cloud storage and security for all devices you use the subscription on. 1 user on multiple devices.
Family $79.99/ year or $7.99/ month All of the Office apps the personal plan includes plus up to 6 terabytes of cloud storage (1 terabyte per person) and security for all devices you use the subscription on. Up to 6 users, on multiple devices.
Office Home & Student 2019 $119.99, one-time purchase Classic versions of Word, Excel, and PowerPoint with no updates or additional features from 365 subscription plans.  1 user, on 1 PC or Mac.
Business Basic $5 user/ month (with yearly commitment) Web and mobile versions of Office apps, including Outlook, Word, PowerPoint, Excel, Teams, Sharepoint, and OneDrive. It also includes 1 TB of cloud storage, Microsoft Teams, email and calendar, and security and compliance features.  Up to 300 users.
Business Standard $12.50 user/ month (with yearly commitment) Everything is Basic, plus always up-to-date Desktop versions of Office apps. Up to 300 users.
Business Premium  $20.00 user/ month (with yearly commitment) Everything in Standard, plus advanced security and device management. Up to 300 users.
Apps for business  $8.25 user/ month (with yearly commitment) Office apps, including Outlook, Word, PowerPoint, Excel, Teams, Sharepoint, and OneDrive, 1 TB of cloud storage, and no additional business features. Up to 300 users.
Enterprise (ES, E3, F3) $10 to $57 user/ month (with yearly commitment) Office apps, Power apps, content creation apps, advanced analytics. Unlimited users.

What New Features Does Microsoft 365 Have?

Microsoft 365 is very similar to the former Office 365, but there are a few new features in the workspace.

To begin, Microsoft is expanding its features to help with “life,” as well as school and work. 

So, “Money in Excel”, allows you to connect your bank and credit card accounts directly to Excel.

Another great new feature is “Microsoft Editor,” which is Microsoft’s version of Grammarly. 

Furthermore, this feature helps you to check and correct your grammar in Word and Outlook without needing an extension for Google Chrome or Microsoft Edge. 

Microsoft has also added new features for personal use, such as Team groups, to use with friends and family.

Additionally, this allows you to connect with colleagues through group chats, video calls, shared calendars, and to-do charts. 

Microsoft has even added additional security features, such as Microsoft Family Safety, which is an app that helps to manage screen time across all of your devices. 

Furthermore, this feature also includes location-sharing options such as notifications when your family arrives or leaves somewhere, like work or school, and where they are on a map.

To know more, you can also read our posts on Microsoft MVP, Microsoft OneDrive, and Microsoft Intune.


Microsoft 365 is a subscription service for those who need access to Office applications in order to help with individual needs such as school or business.

Furthermore, depending on the subscription you choose will determine how much it will cost you yearly, and what features you will have access to. 

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Cara Suppa

Cara Suppa has been freelance writing for over a decade and holds a BA in English and an MS in Integrated Marketing Communications. Outside of work, she is an avid cook, gardener, and discount shopper.

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