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Microsoft 365 vs Office 2021: How To Choose The Right Product?

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Selecting the appropriate productivity software is a crucial decision that can significantly impact the efficiency and effectiveness of workflows, be it for personal use or within an organizational context. Microsoft provides two unique solutions in this domain — Microsoft 365 and Office 2021. 

The former is a subscription-based service that integrates cloud-based functionalities and regular updates. At the same time, the latter is a standalone product, available as a one-time purchase with a perpetual license. 

Each offering comes with its distinct set of features, benefits, and potential limitations. This document intends to provide a comprehensive comparison between Microsoft 365 and Office 2021, enabling prospective users to make an informed selection tailored to their unique requirements and circumstances.

Comparison of Microsoft 365 and Office 2021 Subscriptions

This comparison is intended to offer a detailed analysis of Microsoft 365 and Office 2021 subscriptions. Microsoft 365, a subscription-based service, and Office 2021, available as a one-time purchase, are two distinct options for accessing Microsoft Office applications. 

We can determine the key differences between these offerings by evaluating various aspects such as cost, application availability, feature updates, device compatibility, advanced features, online storage, and technical support. This comparison aims to assist people in making an informed decision based on their own requirements and interests.

FeaturesOffice 2021Microsoft 365 subscription
CostOne-time purchaseMonthly fee or annual payment
Microsoft 365 applicationsIncludedIncluded
Feature updatesNot includedIncluded
Install on multiple devices (PC/Mac)Limited to one deviceMultiple devices
Install on tablets and phonesNoYes
Advanced features on tablets and phonesNoYes
Extra online storageNoIncluded (1 TB per user)
Technical supportInitial support for installationOngoing technical support

Understanding Office 2021

Office 2021 is a standalone productivity software suite Microsoft offers as a one-time purchase. It includes Word, Excel, PowerPoint, OneNote, and Outlook applications. Still, unlike Microsoft 365, it does not include access to cloud-based services such as Teams or SharePoint or provide regular feature updates. 

Users receive security updates and bug fixes but do not benefit from new features or tools post-purchase. Designed for personal and professional use, Office 2021 can be installed on a single device and offers perpetual usage without needing an ongoing subscription. 

This software suite is optimal for users requiring stable, unchanging software environments without needing cloud-based collaboration or storage.

Comparing Different Versions of Office 2021

The most recent edition of Microsoft’s well-known productivity suite is Office 2021. Understanding the differences between the different versions and features is essential to choose the one that best meets your needs. In this comparison, we will explore the various editions of Office 2021, highlighting their unique features and capabilities. By the end of this article, you should have a better idea of which version of Office 2021 is most suited to your or your organization’s needs:

FeatureOffice 2021 Home & StudentOffice 2021 Home & BusinessOffice 2021 Professional
Word 2021YesYesYes
Excel 2021YesYesYes
PowerPoint 2021YesYesYes
OneNote 2021YesYesYes
Outlook 2021NoYesYes
Publisher 2021NoNoYes
Access 2021NoNoYes
License TypeSingle PC/MacSingle PC/MacSingle PC/Mac
Technical SupportLimitedLimitedLimited
Price (USD)*$149.99$249.99$439.99

Understanding Microsoft 365

Microsoft 365 is a complete set of Microsoft productivity products and services. It combines familiar Office applications like Word, Excel, and PowerPoint with cloud-based services, collaboration tools, and advanced security features. Microsoft 365 provides individuals, businesses, and organizations a unified platform for creating, communicating, and collaborating effectively. 

Its subscription-based model allows users to access regular updates and feature enhancements, ensuring they always have the latest tools and capabilities. This technical overview will delve into the key components and features of Microsoft 365, shedding light on its functionality and benefits.

Overview of Microsoft 365 for Home

It offers two subscription plans: Microsoft 365 Family and Microsoft 365 Personal. These plans provide individuals and families with comprehensive applications and services to enhance productivity and streamline daily tasks.

PlanPrice (Annual Subscription)Included Applications
Microsoft 365 Family$99.99Word, Excel, PowerPoint, Outlook, OneNote, OneDrive, Skype, Outlook.com, Microsoft Family Safety, additional benefits
Microsoft 365 Personal$69.99Word, Excel, PowerPoint, Outlook, OneNote, OneDrive, Skype, Outlook.com, Microsoft Family Safety, additional benefits

Overview of Microsoft 365 for Business

It offers a range of subscription plans designed to meet the productivity and collaboration needs of small and medium-sized businesses. Each plan includes a set of applications and services tailored to enhance efficiency and streamline work processes.

PlanPrice (Per User, Per Month)Included Applications
Microsoft 365 Business Basic$6.00Exchange, OneDrive, SharePoint, Teams, Outlook Web App, Office Online
Microsoft 365 Business Standard$12.50Word, Excel, PowerPoint, Outlook, OneNote, Exchange, OneDrive, SharePoint, Teams, Outlook Web App, Office Online
Microsoft 365 Business Premium$22.00All applications from Business Standard, plus additional security and management feature
Microsoft 365 Apps for Business (formerly Office 365 Business)$8.30Word, Excel, PowerPoint, Outlook, OneNote

Overview of Microsoft 365 for Enterprise

It provides a range of subscription plans designed to meet the diverse needs of large organizations. These plans offer a comprehensive suite of applications and services, enabling organizations to enhance productivity, collaboration, security, and compliance while enjoying the flexibility of a scalable and robust solution.

PlanPrice (Per User, Per Month)Included Applications
Microsoft 365 Enterprise E3$23Word, Excel, PowerPoint, Outlook, OneNote, Exchange, OneDrive, SharePoint, Teams, Yammer, Stream, Power Apps, Power Automate
Microsoft 365 Enterprise E5$38All applications from E3, plus additional security and compliance features, advanced analytics, and telephony options
Microsoft 365 E1 (formerly Office 365 E1)$10Web-based versions of Word, Excel, PowerPoint, and OneNote, Exchange, OneDrive, SharePoint, Teams
Microsoft 365 Apps for Enterprise (formerly Office 365 ProPlus)$12Word, Excel, PowerPoint, Outlook, OneNote

Overview of Microsoft 365 for Education

It offers a range of subscription plans tailored to the needs of educational institutions. These plans provide access to a comprehensive suite of applications and services, allowing students, teachers, and staff to collaborate, learn, and achieve more in an efficient and secure digital environment.

PlanPrice (Per User, Per Month)Included Applications
Microsoft 365 A1FreeWeb-based versions of Word, Excel, PowerPoint, and OneNote, Exchange for email hosting, OneDrive for cloud storage, Teams for collaboration
Microsoft 365 A3$2.50All applications from A1, plus desktop versions of Word, Excel, PowerPoint, Outlook, and OneNote, Exchange, OneDrive, SharePoint, Teams
Microsoft 365 A5$6All applications from A3, plus additional security and compliance features, advanced analytics, and advanced threat protection

EPC Group Can Help You With Your Microsoft 365 Consulting Services

With our deep expertise and extensive experience in Microsoft technologies, we are well-equipped to assist you in harnessing the full potential of your Microsoft 365 environment. Whether you are planning a new deployment, migrating from an existing platform, or seeking to optimize security and compliance, our team of skilled consultants is ready to guide you through every step.

You can benefit from our strategic approach and tailored solutions by engaging EPC Group for your Microsoft 365 consulting needs. We understand that every organization has unique requirements, and we thoroughly assess your business objectives and challenges. Our consultants will then design and implement a comprehensive strategy that aligns with your specific goals, ensuring seamless integration, enhanced productivity, and cost-effective operations.

Take the next step towards maximizing the value of your Microsoft 365 investment. Contact EPC Group today to leverage our unrivaled expertise and unlock the full potential of Microsoft 365 for your organization. Our dedicated team is ready to provide top-notch consulting services and support to drive your digital transformation initiatives.

Frequently Asked Question

  1. Do Office 2021 and Office 365 have identical features and functionalities?

No, Office 2021 and Office 365 are not the same. Office 2021 is a one-time purchase that provides a perpetual license for the software. Office 365 (now known as Microsoft 365) is a subscription-based service offering continuous updates, additional features, and cloud-based services.

  1. Is Office 2021 still a viable and functional option for users?

Yes, you can still use Office 2021. Office 2021 is a standalone version of Microsoft Office that provides a perpetual license for the software. It allows users to use Word, Excel, and PowerPoint applications without needing a subscription. However, it does not include access to future feature updates or additional services provided by Microsoft 365.

  1. Is Microsoft 365 gradually replacing the traditional Office suite?

Yes, Office 365 has been rebranded as Microsoft 365. Microsoft 365 offers the same suite of productivity applications, including Word, Excel, and PowerPoint, along with additional features and services. Its subscription-based model offers continuous updates, cloud storage, collaboration tools, and enhanced security features.

  1. Is it possible to make a one-time purchase of Microsoft Office for a perpetual license?

Yes, you can purchase a lifetime license for Microsoft Office through the Office 2021 suite. Office 2021 is a one-time purchase that provides a perpetual license, allowing you to use the software indefinitely without needing a subscription. This option provides lifetime ownership of the Office applications without any recurring fees.

Errin OConnor

Errin OConnor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

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