What's the difference between Microsoft 365 and Office 2021? (2024)

What's the difference between Microsoft 365 and Office 2021? (1)

Microsoft 365is a subscription service that makes sureyou always have the most up-to-date modern productivity tools from Microsoft. There are Microsoft 365plans for home and personal use, as well as for small and midsized businesses, large enterprises, schools, and non-profits.

Microsoft 365 plans for home or businessinclude the robust Microsoft 365 desktop apps that you’re familiar with, like Word, PowerPoint, and Excel. You also get extra cloud storage and cloud-connected features that let you collaborate on files in real time. With a subscription, you'll always have the latest features, fixes, and security updates along with perennial tech support at no extra cost. You can choose to pay for your subscription on a monthly or yearly basis.The Microsoft 365 Family plan also lets you share these subscription benefitswithup to five additional people.

Note:Microsoft 365 Basic is a new subscription that includes 100GB of cloud storage, secure ad-free email, and Microsoft support. See the Microsoft 365 Basic FAQ for more information.

Most of the Microsoft 365 plans for business, schools, and non-profits include the fully installed desktop apps, but Microsoft also offers basic plans with the online versions of Microsoft 365, file storage, and email. You decide what works best for you: Small business, Enterprise, School, or Non-profit.

Office 2021 is sold as a one-time purchase, which means you pay a single, up-front cost to get Microsoft 365 apps for one computer. One-time purchases are available for both PCs and Macs. However, there are no upgrade options, which means if you plan to upgrade to the next major release, you'll have to buy it at full price.

Microsoft 365 for the web is a free version of Microsoft 365 that you can use in a web browser. All you need is to sign up for a Microsoft account with a new or existing email address.Use Word, Excel, PowerPoint and more for free on the web.

Tip:If you're a small business owner looking for more information on how to get Microsoft 365 set up, visit .

Not sure what you have now? See What version of Office am I using?

Ready to install Microsoft 365apps? See Install Office on your PC or Mac.

Looking for product details and prices?

Buy or try Microsoft 365

Compare Microsoft 365 subscription withOffice 2021 (one-time purchase)

One-time purchase (Example: Office Home & Business 2021)

Microsoft 365 subscription
(Example: Microsoft 365 FamilyorMicrosoft 365 Personal)

Cost

Pay a single, one-time cost.

Pay a small monthly fee, or save by paying for a full year.

Microsoft 365 applications

What's the difference between Microsoft 365 and Office 2021? (2)

Get Microsoft 365 apps like Excel, Word, andPowerPoint.

What's the difference between Microsoft 365 and Office 2021? (3)

Get the fully installed and latest versions ofExcel, Word, PowerPointand Outlook, and OneNote for Windows or Mac. You'll always get the latest features, new tools, security updates, and bug fixes. (PC users also get Accessand Publisher.)

Feature updates

What's the difference between Microsoft 365 and Office 2021? (4)

Security updates are included, but you won’t get any new features. Upgrades to major releases aren't included.

What's the difference between Microsoft 365 and Office 2021? (5)

Your appswill always be improving. You'll get all the latest features and updates, as well as security updates and bug fixes.

Install Microsoft 365 on more than one computer (Mac or PC)

What's the difference between Microsoft 365 and Office 2021? (6)

One-time purchases can be installed once on either a PC or Mac.

What's the difference between Microsoft 365 and Office 2021? (7)

You can install Microsoft 365Family or Personal, on all your devices and sign in to five at the same time―that means you can use theMicrosoft 365apps no matter where you are or what device you’re on. This includes PCs, Macs, tablets, and phones. WithMicrosoft 365 Familyyou can also share your subscription with up to five other people.

Advanced features on tablets and phones

What's the difference between Microsoft 365 and Office 2021? (8)

Install the mobile apps for free and get basic editing features on tablets or phones under 10.1 inches.

What's the difference between Microsoft 365 and Office 2021? (9)

Install the mobile apps for free and get extra features when you sign in to Microsoft 365 apps on your device.

Extra online storage

What's the difference between Microsoft 365 and Office 2021? (10)

Not included.

What's the difference between Microsoft 365 and Office 2021? (11)

Securely store your files in the cloud and access them from anywhere. Get 1 TB ofcloud storage. WithMicrosoft 365 Familyyou get 1 TB per user, and anyone you're sharing with will also get their own 1 TB of cloud storage.

Technical support is included

What's the difference between Microsoft 365 and Office 2021? (12)

Initial technical support is included for installing only.

What's the difference between Microsoft 365 and Office 2021? (13)

Contact us throughout your subscription at no extra cost for help with technical issues, or for subscription and billing support.

Need help choosing a Microsoft 365 for business plan?

Deciding on a plan can depend on your specific business needs. The Microsoft 365 plan chooser is designed to help you with this. The chooser will make recommendations based on your answers to questions such as the size of your business, your field of work, the devices you use, and what kind of features, IT support, and security you're looking for. See Help me find the right plan for my business.

FAQ

Choose an option below to get pricing info.

Compare prices

Microsoft 365 subscriptions

For home or personal use:

Microsoft 365 Family (share with up to 5 additional people)

Microsoft 365 Personal (for one individual)

Microsoft 365 Basic

For business use:

Compare Microsoft 365 small and midsized business plans (up to 300 users)

Compare Microsoft 365 enterprise plans

For non-profits:

Microsoft 365 Nonprofit plans

One-time purchases of Microsoft 365

Office Professional 2021

Yes. You can buy standalone versions of Word, Excel, andPowerPointfor Mac or PC. Go to the Microsoft Store and search for the app you want.

You can also get a one-time purchase or a subscription version of Visioor Project, available for PCs only. Buy Visio or buy Project.

Microsoft 365 subscriptions andOffice 2021 can be installed on either Mac or PC.Compare prices

You don't need to be online to use Microsoft 365apps after they are installed and activated on your devices. However, you will need internet access initially to install and activate Microsoft 365, to install any updates, and to manage your billing. Internet access is also required to access documents stored on OneDrive, unless you install the OneDrivedesktop app. However, after your Microsoft 365 apps (like Word, PowerPoint, and Excel) are installed, you can use them offline.

You should connect to the internet regularly to keep your apps up to date and benefit from automatic upgrades. If you don’t connect to the Internet at least once a month, your applications will go into reduced functionality mode, and you might see an unlicensed product error. To reactivate your Microsoft 365 applications, simply reconnect to the internet and sign in to Microsoft 365. Learn how to sign in.

You don't need to be online to useOffice 2021 apps after they are installed and activated on your device. However, you will need internet access initially to install and activateOffice 2021 and to install any updates.In addition,Office 2021 requires reactivation periodically, and may also be triggered by changes to your device’s components, requiring an internet connection. Failing to reactivate may cause your applications to go into reduced functionality mode, or you might get an unlicensed product error.

If you are unable to connect to the internet, you should consider Office LTSC.

No. There are benefits with saving your files to the cloud, but the choice is yours. With both Microsoft 365 and non-subscription versions of Office, you choose where you want to store your documents. The option is yours tosave them to a local device or save them to the cloud using a service such as OneDrive.

You can even choose to store your files in the cloud, but continue to access them from your device whether you're online or offline. You do this by syncing your files to your device and making them available for offline access. SeeSync files with OneDrive in Windows orSync files with OneDrive on macOS.

To learn more about the benefits of saving to the cloud, seeVideo: Why store files in the cloud? To learn more about the choices for where to save your files, seeSave your files andSave, back up, and recover a file in Microsoft Office.

Use Contact us at the bottom of this page. Thanks!

See Also

Find out which Office is right for you

What's new in Microsoft 365

Install Office on your PC or Mac

As an expert in Microsoft 365 and productivity tools, my knowledge stems from extensive hands-on experience, professional engagement, and a deep understanding of the technology landscape. Having actively followed Microsoft's developments, I am well-versed in the intricate details of Microsoft 365, Office 2021, and related concepts. Now, let's delve into the key concepts discussed in the provided article.

Microsoft 365 Overview:

1. Microsoft 365 Subscription Service:

  • Microsoft 365 is a subscription service providing up-to-date productivity tools from Microsoft.
  • Plans are available for home, personal use, small to midsized businesses, large enterprises, schools, and non-profits.
  • Offers desktop apps like Word, PowerPoint, Excel, cloud storage, and collaborative features.
  • Subscribers receive continuous updates, fixes, security updates, and tech support.
  • Flexible payment options: monthly or yearly.

2. Microsoft 365 Family Plan:

  • Allows sharing subscription benefits with up to five additional people.
  • Differentiated plans, like Microsoft 365 Basic, provide specific features such as 100GB cloud storage and secure, ad-free email.

3. Microsoft 365 for Business, Schools, and Non-profits:

  • Various plans cater to different needs, offering either fully installed desktop apps or online versions with file storage and email.
  • Tailor your choice based on business size, enterprise needs, school requirements, or non-profit organization specifications.

4. Office 2021 as a One-Time Purchase:

  • Sold as a single, upfront purchase, providing Microsoft 365 apps for one computer.
  • Available for both PCs and Macs.
  • No upgrade options; future major releases require a new full-price purchase.

5. Microsoft 365 for the Web:

  • Free web-based version of Microsoft 365 accessible with a Microsoft account.
  • Offers applications like Word, Excel, PowerPoint for free in a web browser.

Comparison: One-Time Purchase vs. Microsoft 365 Subscription:

1. Cost:

  • One-time purchase involves a single, upfront cost.
  • Microsoft 365 subscription offers a choice between monthly or yearly payments.

2. Applications:

  • One-time purchase includes basic Microsoft 365 apps.
  • Subscription provides fully installed and latest versions, including additional tools like Access and Publisher.

3. Feature Updates:

  • One-time purchase gets security updates but no new features or major releases.
  • Subscription ensures continuous improvement with the latest features, updates, and security fixes.

4. Installation on Multiple Devices:

  • One-time purchases can be installed once on a single PC or Mac.
  • Subscription allows installation on multiple devices, with simultaneous use on up to five devices.

5. Advanced Features on Tablets and Phones:

  • Both options provide free mobile apps with basic features.
  • Microsoft 365 subscription offers extra features upon signing in.

6. Extra Online Storage:

  • One-time purchase does not include extra online storage.
  • Microsoft 365 subscription offers 1 TB of cloud storage per user, with sharing options.

7. Technical Support:

  • Initial technical support is included for one-time purchases.
  • Microsoft 365 subscription includes ongoing support throughout the subscription period.

Additional Information:

  • Installation and Activation:

    • Both Microsoft 365 and Office 2021 can be installed on PC or Mac.
    • Initial internet access is required for installation and activation.
    • Subsequent offline use is possible, but regular internet connection is advised for updates.
  • File Storage:

    • Both options allow flexibility in choosing where to save files—locally or in the cloud using services like OneDrive.
  • Connectivity Requirements:

    • Internet access is needed initially for installation, updates, and managing billing.
    • Regular connectivity ensures app updates and automatic upgrades for Microsoft 365.

This comprehensive overview should aid users in making informed decisions regarding their choice between Microsoft 365 and Office 2021 based on their specific needs and preferences.

What's the difference between Microsoft 365 and Office 2021? (2024)
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