Mastering Microsoft 365 and Office 365: A Complete Guide to Choosing the Best MS Plans

In the modern workplace, productivity and collaboration tools are essential for both individuals and organizations. Microsoft 365 and Office 365 offer a variety of plans tailored to different needs, whether for businesses, enterprises, or educational institutions. This guide will help you understand the various Microsoft 365 plans available under each category, along with their features and pricing.

Understanding the Difference Between Microsoft 365 and Office 365

Microsoft 365 is a comprehensive suite that includes everything from Office applications to cloud services, security features, and device management. It is designed to be an all-in-one solution for productivity, collaboration, and security, making it suitable for businesses of all sizes.

On the other hand, Office 365 primarily focuses on the core productivity applications, such as Word, Excel, and PowerPoint, along with cloud storage and collaboration tools. While Office 365 is a part of Microsoft 365, it does not include the broader range of services and features that come with Microsoft 365. For more details click here.

Types of Microsoft 365 Licenses

Microsoft 365 Business Basic

Microsoft 365 Business Basic is designed for small to medium-sized businesses that need essential productivity tools without the need for desktop applications. It includes web-based versions of Office apps like Word, Excel, and PowerPoint, along with business-class email hosting through Exchange. Users can collaborate in real-time using Microsoft Teams, which integrates chat, meetings, and file sharing. The plan also includes OneDrive for Business for cloud storage, allowing users to access files from anywhere. Security features include basic data protection and compliance tools, making it suitable for teams that primarily work online.

Microsoft 365 Business Standard

Microsoft 365 Business Standard enhances the capabilities of Business Basic by providing both desktop and web versions of Office applications, allowing users to work offline and access advanced features. This plan includes all features of Business Basic, plus additional tools such as Microsoft Bookings for scheduling appointments and Microsoft Lists for tracking information. Standard also offers enhanced security features like data loss prevention and advanced threat protection. With a focus on productivity and collaboration, this plan is ideal for businesses that require both online and offline access to Office applications and tools for managing customer interactions.

Microsoft 365 Business Premium

Microsoft 365 Business Premium includes all the features of Business Standard while adding advanced security and device management capabilities. This plan integrates Microsoft Defender for Business, providing advanced threat protection against malware and phishing attacks. It also includes Microsoft Intune for mobile device management, allowing businesses to secure and manage employee devices. Additionally, Business Premium offers features like Azure Active Directory Premium P1 for enhanced identity management and conditional access. This plan is tailored for organizations that prioritize security and need to manage devices and applications effectively while ensuring compliance with industry standards.

Microsoft 365 E3/Office 365 E3

Microsoft 365 E3 is a comprehensive productivity suite designed for medium to large organizations, offering robust features for collaboration, compliance, and security. It includes all Office applications (desktop and online), Exchange for business email, SharePoint for intranet and content management, and Teams for communication and collaboration. E3 also provides advanced compliance tools, such as data governance and eDiscovery, to help organizations meet regulatory requirements. Security features include basic threat protection and information protection. This plan is ideal for businesses looking for a balance of productivity tools and compliance capabilities without the highest level of security offered in E5.

Microsoft 365 E5/Office 365 E5

Microsoft 365 E5 is the most advanced plan, encompassing all features of E3 while adding superior security, analytics, and voice capabilities. It includes Microsoft Defender for Office 365, providing advanced threat protection against sophisticated cyber threats. E5 also features Power BI Pro for business analytics, enabling organizations to visualize and analyze data effectively. Additionally, it offers Microsoft Teams Phone for voice calling capabilities, allowing businesses to replace traditional phone systems. Enhanced compliance tools, such as Advanced Compliance and Insider Risk Management, ensure organizations can protect sensitive information and meet stringent regulatory requirements. This plan is tailored for enterprises needing comprehensive security and analytics solutions.

Microsoft 365 and Office 365 Services Families & Plan

1. Business (Maximum of 300 Users)

Microsoft 365 Business Basic (formerly Office 365 Business Essentials)

The Microsoft 365 Business Basic plan is designed for small businesses that require essential productivity tools without the need for desktop applications. This plan includes web and mobile versions of Office apps, Microsoft Teams for collaboration, OneDrive for cloud storage, and SharePoint for file sharing. Priced at approximately $6 per user/month, it provides an economical solution for organizations looking to enhance their collaboration capabilities.

Microsoft 365 Business Standard (formerly Office 365 Business Premium)

The Microsoft 365 Business Standard plan offers a more comprehensive suite of tools for small to medium-sized businesses. It includes all the features of Business Basic, along with desktop versions of Office applications, email hosting, and additional collaboration tools. Priced at around $12.50 per user/month, this plan is ideal for teams that require both online and offline access to their productivity tools.

Microsoft 365 Business Premium (formerly Microsoft 365 Business)

For businesses that prioritize security and device management, the Microsoft 365 Business Premium plan is an excellent choice. This plan encompasses all the features of Business Standard, adding advanced security features, device management capabilities, and compliance tools. Priced at approximately $22 per user/month, it is designed for organizations that need to safeguard their data while managing multiple devices.

Microsoft 365 Apps for Business (formerly Office 365 Business)

The Microsoft 365 Apps for Business plan focuses on providing access to the latest desktop versions of Office applications, including Word, Excel, and PowerPoint. This plan does not include cloud services or email hosting, making it suitable for businesses that primarily require Office applications without additional features. Priced at around $8.25 per user/month, it is a straightforward solution for those who need essential Office tools.

2. Enterprise (Unlimited Number of Users)

Office 365 E1

The Office 365 E1 plan is designed for enterprises that need basic collaboration tools without desktop applications. It includes web versions of Office apps, Microsoft Teams, and email hosting. Priced at approximately $7.75 per user/month, it is a cost-effective option for organizations that primarily operate online.

Office 365 E3

The Office 365 E3 plan provides a robust set of features for larger organizations. It includes all the features of E1, along with desktop versions of Office applications, compliance tools, and advanced security options. Priced at around $20.75 per user/month, it is suitable for enterprises that require a comprehensive productivity solution.

Office 365 E5

For organizations that demand the highest level of security and analytics, the Office 365 E5 plan is the best choice. This plan encompasses all the features of E3 while adding advanced security, analytics, and voice capabilities. Priced at approximately $35.75 per user/month, it is tailored for enterprises with complex needs.

Office 365 F3

The Office 365 F3 plan is designed for frontline workers who need access to essential productivity tools. It includes web versions of Office applications, Microsoft Teams, and email hosting, making it a cost-effective solution for organizations with a large number of frontline employees. Priced at around $4 per user/month, it is ideal for businesses that want to empower their frontline workforce.

Microsoft 365 F1

The Microsoft 365 F1 plan is specifically designed for frontline workers, providing access to essential collaboration tools and services. It includes Microsoft Teams, SharePoint, and other productivity applications, making it a valuable option for organizations with a large frontline workforce. Priced at approximately $2.25 per user/month, it enables businesses to enhance productivity among their frontline teams.

Microsoft 365 F3 (Includes Office 365 F3)

The Microsoft 365 F3 plan combines the features of Office 365 F3 with additional capabilities found in Microsoft 365. This plan provides frontline workers with access to essential productivity tools, along with enhanced security and compliance features. Priced at around $8 per user/month, it is ideal for organizations that need to empower their frontline workforce while maintaining security and compliance.

Microsoft 365 E3 (Includes Office 365 E3)

The Microsoft 365 E3 plan includes all the features of Office 365 E3, along with additional security and compliance capabilities. This plan is designed for larger organizations that require a comprehensive productivity solution with advanced features. Priced at approximately $33.75 per user/month, it is well-suited for enterprises needing a robust platform for collaboration, security, and compliance.

Microsoft 365 E5 (Includes Office 365 E5)

The Microsoft 365 E5 plan encompasses all the features of Office 365 E5, offering the most advanced capabilities available from Microsoft. This plan includes comprehensive security features, advanced analytics, compliance tools, and voice capabilities. Priced at around $54.75 per user/month, it is designed for large organizations that require the highest level of security and analytics to safeguard their data and drive business intelligence.

Microsoft 365 Apps for Enterprise (formerly Office 365 ProPlus)

The Microsoft 365 Apps for Enterprise plan provides access to the latest desktop versions of Office applications, along with cloud services. This plan is ideal for businesses that need up-to-date Office applications and the ability to collaborate in real-time. Priced at approximately $12 per user/month, it is a great option for enterprises that require flexibility and the latest features in their productivity tools.

3. Education (Unlimited Number of Users)

Office 365 A1

The Office 365 A1 plan is tailored for educational institutions, providing essential productivity tools at no cost. It includes web versions of Office applications, Microsoft Teams, and OneDrive for cloud storage. This free plan is ideal for schools and universities looking to enhance their educational offerings without incurring costs.

Office 365 A3

The Office 365 A3 plan builds upon the A1 offering, providing additional features such as desktop versions of Office applications, advanced security options, and compliance tools. Priced at around $2.50 per user/month, it is designed for educational institutions that require a more comprehensive solution for their faculty and students.

Office 365 A5

For educational institutions that demand the highest level of features and security, the Office 365 A5 plan is the best choice. This plan includes all the features of A3, along with advanced security, analytics, and compliance tools. Priced at approximately $6 per user/month, it is tailored for schools and universities with complex needs.

Microsoft 365 A1 (Legacy)

The Microsoft 365 A1 (Legacy) plan is a one-time, per-device license paired with free Office 365 A1 per user licenses. This plan is designed for educational institutions that want to provide access to Office applications on specific devices while utilizing the free A1 offerings for users.

Microsoft 365 A1 for Devices

Similar to the legacy version, the Microsoft 365 A1 for Devices plan is a one-time, per-device license paired with free Office 365 A1 per user licenses. This plan allows educational institutions to provide access to Office applications on designated devices while ensuring that users can benefit from the free A1 offerings.

Microsoft 365 A3 (Includes Office 365 A3)

The Microsoft 365 A3 plan includes all the features of Office 365 A3, along with additional capabilities found in Microsoft 365. This plan is designed for educational institutions that need a comprehensive solution for their faculty and students, offering advanced features for collaboration and security.

Microsoft 365 A5 (Includes Office 365 A5)

The Microsoft 365 A5 plan combines all the features of Office 365 A5 with additional Microsoft 365 capabilities. This plan is tailored for educational institutions that require the highest level of security, compliance, and analytics, making it ideal for schools and universities with complex needs.

The Bottom Line

Choosing the right plan from Microsoft 365 and Office 365 can significantly impact productivity and collaboration within your organization or educational institution. By understanding the various plans available across the categories of Business, Enterprise, and Education, you can make an informed decision that aligns with your specific needs and budget. Whether you require basic collaboration tools, advanced security features, or comprehensive productivity solutions, there is a plan available to meet your requirements. Investing in the right plan will not only enhance productivity but also ensure that you have the necessary tools to succeed in today’s digital landscape.