Microsoft 365 Plans and Pricing: Explained in Detail

Introduction

The relevance of data as a valuable resource in the modern business world cannot be undermined. Business conglomerates rely heavily on data analysis, visualization, summarizing, and presentation of this data with collaboration and productivity tools at work to make an informed decision. Microsoft Office has been a popular choice for this for ages. Microsoft 365 (formerly known as Office 365) is creating ruffles in the corporate world being the latest entrant in the MS Office family.

This blog aims to demystify the numerous plans and the associated Microsoft 365 pricing options available while subscribing to Office 365, offering readers a thorough understanding to aid them in making an informed choice.

Microsoft 365: An Overview

Microsoft 365 is an amalgamation of traditional office productivity tools namely Word, Excel, PowerPoint, etc. with cloud-based online services like Teams, OneDrive, Outlook, etc. The cherry on top is the inclusion of numerous enterprise services like SharePoint and multi-device support encompassing various platforms and storage on the cloud for on-the-fly data access. The key differentiators between MS Office 2021 and Microsoft 365 are highlighted as follows -

Criteria MS Office 2021 Microsoft 365
Price Microsoft Office 2021 price must be paid upfront Microsoft office 365 price is subscription-based (paid on a monthly or annual basis)
Updates Only security patches to fix bugs/loopholes. The latest features with the new version are not included. The latest features along with security patches are available
Multi-device support Single installation only on PC Supports signing in parallel on up to five devices including PC, tablets, and smartphones.
Cloud Storage Unavailable Up to 1 TB
Customer Support Available during installation Available for technical or billing issues anytime

Highlights of Microsoft 365 Plans

You can choose from the bouquet of Microsoft 365 subscription plans, tailored for specific requirements. The subscription plans are divided into three groups - Personal, Business, and Non-profits.

The personal subscription plans are as follows -

Microsoft 365 Personal

This plan is for individuals and offers features like 1 TB cloud storage, Office apps, and enhanced security.

Microsoft 365 Family

This plan is intended for use by families of up to six people and has features like a personal plan, along with 1 TB of cloud storage for each family member and cross-device access to Office apps.

Microsoft 365 provides various plans for businesses of all sizes and scales summed up below -

Microsoft 365 Business Basic

This plan includes cloud storage via OneDrive, E-mail hosting using Exchange, and Teams for collaboration, alongside mobile and web versions of Office apps. The outlook business email pricing is included in this plan to support custom business email IDs.

Microsoft 365 Business Standard

This plan suits businesses needing a wide range of productivity tools as it includes the entire suite of Office apps with Cloud Storage, E-mail hosting, and Teams.

Microsoft 365 Business Premium

This plan is apt for businesses needing strong security capabilities as it includes additional security tools apart from device management features besides all the Business Standard features.

Microsoft 365 Apps for Business

The plan is suited to businesses needing just office apps sans security or cloud storage and email hosting as it provides just that.

Microsoft 365 Enterprise Plans

These plans are suited for large organizations needing extensive features. It provides three progressive plans – E1, E3, and E5, in addition to F3. The E1 plan offers Office apps (mobile and web versions), Teams, OneDrive, and basic services. The E3 plan expands on the features of the E1 plan with additional security and compliance tools. The E5 plan further enriches the deal with surplus features like voice support, analytics, and superior security.

The F3 plan was designed specifically for frontline employees. It includes the web version of Office apps, outlook with Calendar, Teams, 2 GB of cloud storage, and basic compliance and security tools.

Microsoft 365 also provides subsidized plans for non-profit companies along with the Microsoft 365 pricing business plans for standard businesses. The plans are like the Business plans albeit at a discounted or no cost. However, organizations must apply through Microsoft's non-profit portal to be eligible for these discounts.

Key Considerations for Choosing a Plan

The most important decision you’ll make is, whether to choose a Personal or a Business plan. The choice is straightforward i.e. personal subscription, if you are looking to use Microsoft 365 for your use. The following table showcases the key parameters to be taken into consideration while deciding on a personal or family plan.

Parameter Microsoft 365 Personal Plan Microsoft 365 Family Plan
Users One Up to Six
Available Office Apps Excel, Word, PowerPoint, Outlook, Defender, OneDrive, OneNote, Clipchamp Excel, Word, PowerPoint, Outlook, Defender, OneDrive, OneNote, Clipchamp
Cloud Storage 1 TB (Maximum) 6 TB (Maximum)
Subscription Charges $6.99 per month or $69.99 per year $9.99 per month or $99.99 per year
Multi-device Support Yes (Up to five) including PCs, smartphones, tablets, and Macs Yes (Up to five) including PCs, smartphones, tablets, and Macs
Free Trial Not available One month

The decision becomes tricky for businesses as they are spoilt for choices by Microsoft 365. They must decide between Basic, Standard, Premium, and Apps for Business. Microsoft 365 Apps for Business is the obvious choice if the business wants to opt just for the desktop version of standard office apps along with additional cloud storage of 1 TB. The Microsoft 365 pricing in this case is $9.90 for a month and offers a 16% discount on an annual subscription. The choice between the remaining three plans can be complicated but your requirements can point to the optimum plan for your business.

Parameter Microsoft 365 Business Basic Microsoft 365 Business Standard Microsoft 365 Business Premium
No. of users 300 (Maximum) 300 (Maximum) 300 (Maximum)
Office Apps available with the plan Excel, Word, PowerPoint, Outlook, Exchange, OneDrive, SharePoint, and Teams, in addition to extra apps like Forms, Planner, Bookings, etc. Clipchamp and Microsoft Loop apart from all the apps available in the Basic plan Microsoft Defender, Entra ID, Purview, and Intune, apart from all the apps available in the Standard plan
Available App Versions Web, Mobile Apps, Cloud Services Desktop, Web, Mobile Apps, Cloud Services Desktop, Web, Mobile Apps, Cloud Services
Additional Feature Standard Features Project management, CRM, Webinar and Live Event Management, and Video editing apart from all features available in the Basic plan Device management, and Enhanced Cyber security apart from all features available in the Standard plan
Cloud Storage 1 TB per user 1 TB per user 1 TB per user
Pricing $7.20 per user per month for monthly subscriptions, $6.00 per user per month for annual subscriptions $15.00 per user per month for monthly subscriptions, $12.50 for annual subscriptions $26.40 per user per month for monthly subscriptions, $22.00 for annual subscriptions
Free Trial One month One month One month

Conclusion

To summarize, the various Microsoft 365 plans are available for all kinds of users depending on one’s requirements and budget. Microsoft 365 personal is largely suited for individual users and Microsoft 365 family is appropriate for a small startup with around 5-6 employees. Microsoft 365 business plans are suitable for small and medium enterprises. Depending on the scale and desired features, you can choose from basic, standard, premium, or Apps for Business. Microsoft 365 enterprise plans are explicitly designed for large firms so you can go for it if yours is a giant multi-national.

To choose the best option for your requirement, you should consult a Microsoft Partner with expertise in providing best packages to the users. Often, Microsoft Partners can give you special discounts on these packages too.

Important note: Prices mentioned here are only for reference and subject to change as per Microsoft pricing policy without any notice. Please contact Akkomplish for current prices and offers.

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