Difference Between O365 and M365 Licenses and Features for Beginners

Introduction

Microsoft 365 (M365) and Office 365 (O365) are both subscription-based services from Microsoft, but Microsoft 365 includes additional features beyond Office 365. While Office 365 focuses primarily on productivity apps, Microsoft 365 combines Office 365 with other services like Windows, advanced security features, and device management tools.

Here’s a breakdown of the differences between the two:

1. Core Offering

• Office 365
  • Primarily includes productivity applications like Word, Excel, PowerPoint, Outlook, OneDrive, and Teams.
  • It also includes Exchange for email, SharePoint for document management, and additional collaboration tools.

• Microsoft 365
  • Includes everything Office 365 offers.
  • Adds more services, such as Windows 10/11 licenses and Enterprise Mobility + Security (EMS), offering a more comprehensive package for businesses that need device and security management alongside productivity tools.

2. Licensing and Editions

• Office 365 Plans
  • Business Plans: Targeted at small to medium-sized businesses (SMBs).
  • Examples: Office 365 Business Basic, Office 365 Business Standard, Office 365 Business Premium.
  • Enterprise Plans: Targeted at larger organizations with advanced needs.
  • Examples: Office 365 E1, Office 365 E3, Office 365 E5.
• Microsoft 365 Plans
  • Microsoft 365 Business Plans: Designed for SMBs with fewer than 300 users.
  • Examples: Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium.
  • Microsoft 365 Enterprise Plans: Targeted at large enterprises.
  • Examples: Microsoft 365 E3, Microsoft 365 E5.
  • Microsoft 365 F Plans: Specifically designed for frontline workers (e.g., retail, healthcare).
  • Example: Microsoft 365 F1, Microsoft 365 F3.

3. Features Overview

4. Security Features

• Office 365
  • Basic security features, such as data loss prevention, email protection, and some access management, are included in most Office 365 plans.
  • More advanced security features are available in higher-tier Office 365 plans (like Office 365 E5), such as Microsoft Defender for Office 365.

• Microsoft 365
  • Includes advanced security and identity protection as part of its core offering.
  • Comes with tools like Azure Active Directory Premium, Conditional Access, Information Protection, and Defender for Endpoint (especially in E5 plans).
  • Enterprise Mobility + Security (EMS), which includes tools like Azure AD, Microsoft Defender, and Intune, is part of the M365 offering, especially in the enterprise-grade plans (E3, E5).

5. Device and Application Management

• Office 365
  • Does not include native device management features, though you can purchase or integrate third-party tools for managing devices and apps.

• Microsoft 365
  • Includes Microsoft Intune and Windows Autopilot, which provide capabilities for managing devices (mobile, desktop, etc.) across an organization.
  • Offers more control over security policies, patch management, and device monitoring.

6. Pricing Differences

• Office 365
  • The plans are generally more affordable, with an emphasis on core productivity apps and cloud collaboration.
  • Pricing depends on the plan (e.g., Business Basic, Business Standard, or higher-end plans like Office 365 E5).
• Microsoft 365
  • More expensive because it bundles Office 365 apps with additional services like Windows licenses, advanced security features, and device management.
  • Examples:
  • Microsoft 365 Business Premium includes Office apps, Windows 10/11 licensing, and EMS features.
  • Microsoft 365 E5 includes Office apps, advanced analytics (Power BI), security, and compliance tools.

7. Collaboration Tools

Both Office 365 and Microsoft 365 provide access to collaboration tools like Teams, SharePoint, and Yammer, but Microsoft 365 adds more integration with security and compliance features for collaborative environments.

Key Differences

Conclusion

Office 365 is ideal if you are looking for core productivity tools like Word, Excel, PowerPoint, and cloud services (OneDrive, Teams, Exchange) without needing advanced security or device management.

Microsoft 365 is a more comprehensive offering that includes Office 365 apps, a Windows OS license, and advanced security and device management tools, making it more suitable for businesses that need an all-in-one solution for managing their employees’ devices, securing their data, and providing a modern cloud workspace.

Choosing between them depends on your organization’s needs for security, compliance, and device management alongside productivity.

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