Guide
Microsoft 365 vs Office 365
Same apps. Different bundles. Here's what actually changed.
TL;DR
- • Office 365 = productivity apps (Word, Excel, Teams, Exchange, SharePoint)
- • Microsoft 365 = Office 365 + Windows + Security + Device Management
- • Microsoft rebranded consumer plans in April 2020. Enterprise Office 365 plans still exist, but M365 is the future.
The Short Version
In April 2020, Microsoft renamed its consumer and small business Office 365 plans to "Microsoft 365." But for enterprise customers, the story is more nuanced: Office 365 E1, E3, and E5 still exist as standalone plans. Microsoft 365 E3 and E5 are separate, more expensive bundles that include Office 365 plus Windows Enterprise and Enterprise Mobility + Security (EMS).
The confusion is intentional — Microsoft wants to upsell you into the larger bundle. But the choice is straightforward: if you only need cloud productivity apps, Office 365 works fine. If you also need Windows licenses, Intune for device management, or Azure AD Premium for identity protection, Microsoft 365 bundles everything at a lower total cost than buying each piece separately.
The table below shows exactly what you get at each tier, with real feature counts pulled from our licensing database.
Plan-by-Plan Comparison
| Tier | Office 365 | Microsoft 365 | M365 Adds |
|---|---|---|---|
Entry-level | O365 E1 $10/mo 36 features | M365 F3 $8/mo 98 features | +62 Windows + EMS core + 62 more features |
Mid-tier | O365 E3 $23/mo 45 features | M365 E3 $36/mo 126 features | +81 Windows E3 + Intune + Azure AD P1 + 81 more features |
Top-tier | O365 E5 $38/mo 78 features | M365 E5 $57/mo 186 features | +108 Windows E5 + Defender suite + Azure AD P2 + 108 more features |
Feature counts reflect included features only (excludes add-ons and partial availability).
What Microsoft 365 Adds Over Office 365
Microsoft 365 bundles three additional pillars on top of every Office 365 plan. Here's what each category covers:
Microsoft Defender for Endpoint, Cloud App Security, Safe Links, Safe Attachments, and advanced threat protection across email, endpoints, and identities.
Azure AD Premium P1/P2, Conditional Access, Privileged Identity Management, Identity Protection, and risk-based sign-in policies.
Microsoft Intune for MDM/MAM, Windows Autopilot, endpoint analytics, and device compliance policies.
Data Loss Prevention (DLP), sensitivity labels, eDiscovery, audit logging, information barriers, and insider risk management.
Which Should You Buy?
You only need apps
Stick with Office 365 E1 or E3. No need to pay for Windows and EMS if you already have them or don't need them.
You manage devices
Microsoft 365, always. Intune alone costs $8/user/mo. M365 bundles it at a significant discount vs. purchasing O365 + Intune separately.
You need security
Microsoft 365, always. Azure AD Premium, Conditional Access, and Defender are only available in M365 plans (or as expensive add-ons to O365).
Budget is the primary concern
Start with Office 365 E1 at $10/user/mo, then upgrade to M365 when you outgrow basic productivity. The upgrade path is seamless.