Microsoft 365 (formerly Office 365) vs. Office 2016: a comparison of both models

If you opt for Office 2016, the purchasing process is barely any different from buying previous versions of Office. This means that you buy Office at a store or online for a one-time fee and receive the full version of the software as per usual. Microsoft offers the software plans in different versions, each of which differs in range: the customary individual applications Word, Excel, PowerPoint and OneNote are always included (e.g. in the smallest plan Home & Student). Larger plans (such as Home & Business) include the Outlook email client. Office 2016 Professional provides you with even more such as the Publisher and Access applications. Office 2016 is available for Windows PCs (from Windows 7 onwards) as well as for Mac OS.

Since it’s a download, this means that an internet connection is required for Office 2016’s initial installation and setup. Once the software is installed on your computer, you don’t need an internet connection anymore. This means that you can also use the application when you’re on the move i.e. on your laptop on public transport.

In addition to the relatively high purchase costs, the big disadvantage of this model is that only the most necessary security updates are provided. New features that supplement subsequent Office releases are no longer available – at least until you purchase subsequent versions Office 2019 or Office 2021 at full price. Office 2016 also lacks an upgrade feature: the software comes as it is and there’s not much you can do to expand it.

On the contrary to a one-time purchase of Office 2016 and subsequent editions, you pay a monthly or annual fee with Microsoft 365, this also includes access to Office applications Word, Excel, PowerPoint, OneNote, and Outlook. Publisher and Access are also included for PCs. Unlike with the one-time purchase of the Office 2016 beginner versions “Home & Student”, these programs are also included in the low-cost plans “Microsoft 365 Personal” and “Microsoft 365 Family”. If you decide to pay the yearly fee, it is slightly cheaper than paying the monthly fee for a year. The individual Microsoft 365 license models and the corresponding prices have already been described in detail in one of our articles.

One of the most important differences between Microsoft 365 and Office 2016 is that with the subscription model, you always get the latest versions of the entire Office programs in addition to the full range of applications. This means that as soon as a new Office version is released, subscription users can upgrade without having to pay again. Regular feature updates are also included as well as the security updates.

If many users want to use the software, it is crucial that it can be installed on several devices with only one subscription. For example, Microsoft 365 Family lets you use individual applications on up to five devices, whether it’s Mac or PC, an iOS or Android device.

The range of functions is also extended to tablets and smartphones which a one-time purchased version doesn’t offer. On mobile devices, you can work in Microsoft 365 Word with “Track Changes”, edit headers and footers, or insert section and page breaks. With Excel you can also use shadow and mirror effects or insert WordArt, while PowerPoint’s features include freehand annotations and speaker notes. This extended set of features applies to five smartphones and five tablets. In addition, there is 1TB OneDrive cloud storage for each user, which isn’t included with Office 2016. Technical support from Microsoft is available during the entire subscription period, instead of only during the installation process.