What is Office 365?
Updated December 2022:
Microsoft is changing Office to Microsoft 365. Read the latest update on Microsoft 365 on the link below:
https://www.bobology.com/public/Microsoft-365.cfm
Office 365 is a subscription based set of software and services from Microsoft. Like many Microsoft products, it comes in different plans and pricing for home users, small businesses, and large organizations. All Office 365 subscriptions include online access to the popular Microsoft Word, PowerPoint, and Excel applications, plus a cloud storage service for storing documents. A subscription service for software may be a new concept to you, so let's look at the difference between a subscription and a software purchase.
The primary difference between Office 365 and Microsoft Office is the way it is purchased and updated. Traditionally, a user would purchase a retail package with a CD or DVD with a copy of the software on it, along with a license, and install the software on their computer. The license and CD/DVD was for a particular version of the software, such as Office 2007.
Why Do I Want a Subscription?
Microsoft periodically releases a new version of Microsoft Office, such as Office 2010, and the latest, Office 2013. Upgrading to the latest version required purchasing an upgrade package that included a CD/DVD and the new upgrade license to install and access the new version of the software. Upgrades weren't mandatory, and many people would continue to use the version of the software they had originally purchased since it met their needs. Software companies don't like users who stay with older versions too long, so let me explain why.
Since many newer features that make Microsoft's product competitive are only available in the newest version of the software, any user with the older version is not seeing the latest features and benefits of what Microsoft can offer. It's like comparing a 5 or 6 year old car to a new one, the new ones always look shinier while the older one looks a little worn. So users of older versions of Microsoft Office are comparing it to the latest versions of competitor's products.
Microsoft wants you to continue to use Microsoft Office and stay with the product as it adds new features and benefits. If you don't upgrade, you don't ever see what improvements Microsoft have made. When you compare your older version of Microsoft Office to a competitor, you will likely see the latest version of a competitor's product, and you might never see the latest version of Microsoft's. So one reason Microsoft wants you to use subscription based software is to keep you with Microsoft products and not switch to a competitor. (all software companies have this challenge with an installed base of users, it's not just Microsoft). But there is another reason for a subscription service.
Supporting different versions of software is one of a software company's largest expenses. Each version has to have a team of people assigned to maintain the product. The more versions that are in use, the greater the number of people that have to maintain and update the software for security issues and bug fixes. With the Office 365 subscription based software, Microsoft can release updates anytime they are necessary since all users obtain the software online and can be updated automatically. In addition, new versions of the software cane updated automatically. Like it or not, subscription based software is going to be the way of the future. When you use your Web based email or map Web site, you're essentially using a free software product. And there is one more reason.
Services are increasingly included with software. People who create documents need storage, people who use email need email accounts, and people who use business productivity tools usually need a phone and conference services. Office 365 plans include these and other services depending on the specific plan. So in addition to Word, Excel, and PowerPoint being available to you online, you can also store your documents in Microsoft's cloud storage, use Microsoft's Exchange email service, and use Skype. Another benefit is that you can use Office 365 on any computing device with a Web browser since the software is a Web-based solution.
But What if I Want to Use Software Off-Line
The basic Office 365 subscription doesn't include desktop copies of Word, Excel, and PowerPoint. So this means you need to be connected to the Internet to use these applications. If you need the software so you can work offline, on a laptop, for example, you just need to purchase an Office 365 version with the local software versions and install them. Then, whenever you connect to the Internet, your documents are synced. Having the online only version might seem like a limitation if you're used to using the local copy of software.
If you do any work offline without an Internet connection, for example, if you travel frequently, you will probably need an Office 365 version with offline capability or purchase the desktop software. Small Business Premium is the version that includes both online and desktop software and is described below. If you usually use your computer at home where you have Internet access all the time, it's not necessary. Pricing for the desktop software has increased compared to older versions so if you can use the online version, you can save some money. Remember, one of the biggest advantages of Office 365 is the ability to access your information anywhere you can use a Web browser and the Internet, on any device, on Mac's, tablets, and smartphones that aren't Microsoft products.
Home Premium Version
The Home Premium version of Office 365 includes any number of users in a household and use on up to 5 devices per user (not total, that's per user). It includes Word, Excel, PowerPoint, OneNote, Outlook, Publisher, and Access. It also includes 20G of SkyDrive storage and 60 minutes of Skype call time. It's priced at $99.99 per year or $9.99 per month on Microsoft's Web site.
One caveat, you can't use Office 365 on Windows XP or Vista, you need to have Windows 7 or 8 or a Mac with OS X 10.6 or later.
Small Business Premium Version
In businesses and large organizations, the Microsoft Office software usually includes the use of Outlook's mail and contact management with Microsoft's commercial solution, Exchange. Sometimes additional collaboration tools are used by organizations that have a server based product from Microsoft called Small Business Server. Office 365 can completely replace this server and eliminate the need for costly hardware and software licenses and support. It can also give the one or two person business access to professionally managed information technology previously available only to organizations that could afford servers.
Small Business Premium includes both online and desktop versions of Word, Excel, PowerPoint, Outlook, OneNote, Access and Publisher. In addition, it includes an Exchange email account, Lync, and Sharepoint. Lync is Microsoft's phone and message solution for the desktop and Sharepoint is a collaboration solution for sharing documents in an organization.
Small Business Premium can be used from one to fifty users in an organization, with up to 5 devices per user. Each user receives 25 G of email storage and 10G of Sharepoint storage. The Sharepoint storage is essentially the same as SkyDrive but allows a team or organization to have all files stored in one location.
If you're a small business and already use Microsoft Office products, you should really look into Office 365 for your own use (I don't work for Microsoft). The benefits of having Outlook with Exchange are worth it for email, calendar, and contact management. And you can use your email on both iOS and Android and keep everything in sync.
Security, Backup. and Other Plans
For security issues, Office 365 is protected with the latest and continually updated, protection schemes against viruses, spam and malware of every type. Office 365 also has excellent disaster recovery ability because of the Microsoft policy for use of multiple data centers and failovers that are automatic. For this reason, Office 365 claims and delivers a 99.99% guarantee of uptime.
There is an Office 365 Enterprise Plan that allows users connection rights to SharePoint services using only SSL encrypted connections. Only enterprise plan users have this special cryptographic security system for protection of their document transmissions.
Is Office 365 Right for You?
If you are an experienced user of Microsoft's Office products, then Office 365 is an alternative to purchasing a retail product CD/DVD. Office 365 eliminates the need to purchase new versions of the software, since new versions are available as part of your subscription. If you need business grade email, the use of Exchange mail with the Small Business plans will give you large organization email capabilities for a fraction of the cost, along with full desktop versions of the software.
For home users, household access to Word, Excel, PowerPoint, and Outlook is a very attractive price point. And if necessary, you can purchase a desktop license for only those household members that need a copy.
Why is Microsoft doing this? Well, they aren't the first ones to offer online versions of software. Another company, Google, has been doing this for years with their Google Docs suite of online office software. Microsoft is changing with the technology just like everyone else, and if you can take advantage of this competition, you can save money. Watch in a few weeks as I cover Google Docs and Apple's iWork solutions, all of which will work on a Windows PC, Mac, iOS, and Android.