Comparison Guide

Microsoft 365 vs Office 365

Microsoft 365 and Office 365 are not competing products. Office 365 is the productivity apps and cloud services (Word, Excel, PowerPoint, Outlook, Exchange, SharePoint, Teams). Microsoft 365 is a superset: it bundles that same Office 365 with Windows 11 Enterprise, Microsoft Intune device management, and Microsoft Entra ID identity security. Microsoft renamed most small-business Office 365 plans to Microsoft 365 on April 21, 2020, but kept the Office 365 name on the Enterprise E1, E3, and E5 plans, which is why both brands still appear on Microsoft's price list today.

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Quick Answer

Office 365 wins for most buyers.

They aren't rival products: Office 365 is the productivity apps, and Microsoft 365 is Office 365 plus Windows Enterprise, Intune, and identity security. Most SMBs want a Microsoft 365 Business plan..

Side-by-Side Comparison

Feature Microsoft 365 Office 365
What it is Office 365 apps + Windows + security bundle The productivity apps and cloud services only
Office desktop apps Included (same apps) Included (same apps)
Windows 11 Enterprise Included (E3/E5) Not included
Device management (Intune) Included (E3/E5) Not included
Identity security (Entra ID) Entra ID P1/P2 included (E3/E5) Basic identity only
SMB plans Microsoft 365 Business Basic/Standard/Premium Rebranded to Microsoft 365 in 2020
Enterprise plans (per user/mo, annual) Microsoft 365 E3 $39, E5 $60 Office 365 E1 $10, E3 $26, E5 $41
Best for Teams needing managed Windows + security Apps-only needs or an existing enterprise standard

Our Verdict

For most small and mid-size businesses the practical answer is a Microsoft 365 Business plan, not standalone Office 365: you get the same apps plus Intune and identity security in one bundle. Choose Office 365 Enterprise (E1/E3/E5) when you only need the apps and services and manage Windows and security separately, and step up to Microsoft 365 E3/E5 when you want Windows Enterprise, Intune, and Entra ID in the same license. If the naming and license tiers are the real blocker, a Microsoft 365 consultant can right-size the plan before you renew.

Unio Digital recommends: They aren't rival products: Office 365 is the productivity apps, and Microsoft 365 is Office 365 plus Windows Enterprise, Intune, and identity security. Most SMBs want a Microsoft 365 Business plan.

Quick Picks

Which one should you pick?

Three buyer profiles, three answers. Pick the row that fits.

Most Arizona SMBs (under 300 seats)

Pick: Microsoft 365 Business

You want the apps, Teams, email, and security (Intune, Entra ID, Defender) in one license. Business Standard covers apps and Teams; Business Premium adds Defender and Intune-class device management.

Get a Microsoft 365 quote

Enterprise standardized on Office 365 (300+ seats)

Pick: Office 365 E3/E5, or step up to Microsoft 365 E3/E5

Office 365 E1/E3/E5 ($10/$26/$41) covers apps and services. Move to Microsoft 365 E3/E5 ($39/$60) when you want Windows 11 Enterprise, Intune, and Entra ID identity protection in the same license.

Talk to a strategist

Just need a licensing review

Pick: Microsoft 365 consultant (project basis)

Not sure if you're on the right plan or overpaying? We audit your Office 365 vs Microsoft 365 licensing, right-size it at partner pricing, and configure the tenant, then hand it back.

Talk to a Microsoft 365 consultant

For enterprises & in-house security teams

Need a Microsoft 365 consultant to sort out licensing?

The Microsoft 365 vs Office 365 question usually hides a licensing-optimization question: are you on the right plan, paying for seats you don't use, or missing security you're already entitled to? We work as your Microsoft 365 consultant on a project basis: license review, right-sizing, tenant configuration, and migration, then hand the keys back to your team.

  • Microsoft partner pricing on Microsoft 365 and Office 365 Business and Enterprise plans
  • License audit: right-size E3 vs E5, Office 365 vs Microsoft 365, add-ons, and unused seats
  • Tenant build and hardening: Entra ID, conditional access, Intune, and Defender baselines
  • Mailbox and file migration with a rollback plan and pilot validation
  • Knowledge transfer so your in-house IT can self-administer from day one
Talk to a Microsoft 365 consultant

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Frequently Asked Questions

Office 365 is the productivity apps and cloud services (Word, Excel, PowerPoint, Outlook, Exchange, SharePoint, Teams). Microsoft 365 is a bundle that includes that same Office 365 plus Windows 11 Enterprise, Microsoft Intune device management, and Microsoft Entra ID identity security. At the same tier the Office apps are identical; Microsoft 365 differs by adding Windows and security or management on top.

Yes. Microsoft renamed most small-business Office 365 plans to Microsoft 365 on April 21, 2020, but the Office 365 Enterprise plans (E1, E3, and E5) kept the Office 365 name and are still sold today at $10, $26, and $41 per user per month on an annual commitment. Education and Government Office 365 plans also retained the name.

No. Office 365 E3 is the apps-and-services plan. Microsoft 365 E3 bundles that same Office 365 E3 with Windows 11 Enterprise, Intune, and Entra ID P1, so it costs more ($39 vs $26 per user per month) and does more. Buyers confuse these constantly; the Microsoft 365 version is the one that manages your Windows devices and identities.

For most businesses under 300 users, a Microsoft 365 Business plan (Basic, Standard, or Premium) is the right answer because it bundles the apps, Teams, email, and security in one license. Office 365 Enterprise (E1/E3/E5) makes sense when you have 300+ users, only need the apps and services, and manage Windows and endpoint security through other tooling.

A Microsoft 365 consultant reviews your current licensing, right-sizes plans (Office 365 vs Microsoft 365, E3 vs E5, add-ons), configures the tenant (Entra ID, conditional access, Intune, Defender), and runs migrations. The goal is to stop paying for seats or features you don't use and to turn on the security you're already entitled to. Unió Digital does this on a project basis at Microsoft partner pricing.

Yes. We procure Microsoft 365 and Office 365 licenses at partner pricing, audit your current plans for the Office 365 vs Microsoft 365 gap, build and harden the tenant (Entra ID, Intune, Defender baselines), migrate mailboxes and files, and hand the keys to your in-house IT to self-administer. We stay available for tier-3 escalations only if you want backup.

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Sources & Methodology  

Specifications, pricing, and product capabilities cited on this page are sourced from public vendor documentation as of the dates shown below. Vendor product lines change quickly; verify current specs and pricing directly with each vendor before purchasing.

  1. Microsoft renamed most small-and-medium-business Office 365 plans to Microsoft 365 on April 21, 2020 (Office 365 Business Essentials became Microsoft 365 Business Basic, Business Premium became Business Standard), while Office 365 Enterprise, Education, and Government plans kept the Office 365 name. [source] · verified 2026-07-10
  2. Office 365 Enterprise plans are still sold today, separate from Microsoft 365: Office 365 E1 lists at $10.00, E3 at $26.00, and E5 at $41.00 per user per month on an annual commitment. [source] · verified 2026-07-10
  3. Microsoft 365 E3 ($39.00/user/mo) and E5 ($60.00/user/mo, annual) bundle the equivalent Office 365 plan with Windows 11 Enterprise, Microsoft Intune, and Microsoft Entra ID identity and access management on top of the apps. [source] · verified 2026-07-10
  4. For businesses under 300 users, Microsoft's current SMB lineup is Microsoft 365 Business (Basic $7.00/user/mo, Standard, and Premium), which includes Microsoft Teams and custom business email; the standalone Office 365 brand now applies mainly to the Enterprise E1/E3/E5 plans. [source] · verified 2026-07-10
  5. Microsoft 365 E3 and Office 365 E3 are different products: Office 365 E3 is the apps-and-services plan, while Microsoft 365 E3 adds Windows 11 Enterprise, Intune, and Entra ID P1 to that same Office 365 E3 base. [source] · verified 2026-07-10