Microsoft 365 is the subscription-based version of the on-premises Microsoft Office application suite that has been available for decades. Office was originally designed as an on-premises business productivity product consisting of Word, Excel, and PowerPoint applications. All these applications were once standalone products, but by bundling them into the Office package, a single license gives a user unlimited access to all the applications. This simplifies the deployment and licensing process for IT purchasers and administrators.
The most recent release of the on-premises bundle is Microsoft Office 2021, but many corporate IT departments are still using previous versions, such as Microsoft Office 2019 or 2016. The package includes desktop versions of Outlook, Word, Excel, PowerPoint, Publisher, and Access for either Windows or Macintosh. These Office products are purchased outright, so no ongoing subscription fee exists. Office 2021 is available in multiple editions with varying contents. Enterprise administrators typically select Office Professional 2021, which is volume licensed.
Microsoft is clearly attempting to urge the Office market toward its subscription-based products. The list of features and benefits that are not included in the Office 2021 package but available in Microsoft 365 is a long one and includes the following:
- Automatic feature updates Microsoft 365 packages all receive regular feature, quality, and security updates at monthly or semiannual intervals determined by the enterprise administrator. By default, Office 2021 automatically downloads quality and security updates monthly from the Microsoft Content Delivery Network (CDN), but it does not receive feature updates. Major upgrades, such as from Office 2019 to Office 2021, require purchasing a new license.
- Licensed devices The Microsoft 365 licenses permit each user to install the Office productivity applications on up to five devices, meaning a single license can be used for a user’s office, laptop, and home computers—and even two smartphones or tablets. The Office 2021 license only permits the installation of the applications on one Windows or Macintosh computer.
- Operating system support While the Microsoft 365 products include Windows 11 Enterprise and require that operating system for many collaboration features, the Office 2021 product can be installed on any Windows 11 or 10 computer (version 1809 or later).
- OneDrive cloud storage Any registered user can obtain OneDrive cloud storage, but Microsoft 365 subscribers receive 1 TB of storage. Unlicensed users and Office 2021 licensees are only permitted 5 GB.
- Technical support The Microsoft 365 business packages include 24/7 online and telephone support and the FastTrack deployment service. The Office 2021 license has more limited support options.
- Email hosting and calendaring Most Microsoft 365 packages include the Exchange Online cloud service, which provides email and calendaring. For Office 2021 users, this service is only available as a separate subscription for an additional fee. There is also an on-premises Exchange Server product that is sold separately.
- Collaboration tools Most Microsoft 365 packages include cloud-based collaboration services such as SharePoint and Microsoft Teams. For Office 2021 users, these services are only available as separate subscriptions for additional fees. SharePoint is also sold separately as an on-premises server.
- Reduced functionality mode With Microsoft 365, if a user’s subscription lapses, if an administrator removes a user’s license, or if the computer on which the Office applications are installed does not connect to the Internet at least once every 30 days, the Office productivity applications go into reduced functionality mode and display a message like the one shown in Figure 2-10. In reduced functionality mode, the user can open, view, and print existing documents, but all editing functions are disabled, and the user cannot create new documents. The Office 2021 applications never revert to a reduced functionality mode, and users are not required to connect to the Internet.
FIGURE 2-10 Microsoft 365 Reduced Functionality Mode warning
While individual users might see these omissions as considerable drawbacks to the Office 2021 product, this is not necessarily so for enterprise administrators. In some cases, administrators might prefer that the Office applications not receive feature updates because of the additional support and training issues they might cause. Every new support issue in the enterprise is multiplied by hundreds or thousands of users, so the sudden appearance of substantial changes or new features in the Office applications can be more trouble than it’s worth.
As to the additional cloud services provided in many of the Microsoft 365 packages, such as those providing email and collaboration, many organizations already have solutions for these services in place and do not want to pay for features they do not need or want. Microsoft technical support for individual users might also not be necessary because enterprise administrators typically provide that support themselves. Many large organizations also obtain Office 2021 by purchasing a volume license, which might include incident support, should it be needed.