The Difference Between Office 2016 and Office 365 in a Nutshell

Microsoft Office is now available in multi-format software and users can select the package that suits their needs. But what exactly is the difference between Office 2016 and Office 365?

In short, both provide the latest version of the Office software, which includes Word, Excel, and PowerPoint. However, Office 2016 is a stand-alone product, while Office 365 is the cloud-based subscription service of the same applications.

Users have two options for the standalone Office 2016 product:
1. Office Home & Business 2016: Includes Word, Excel, PowerPoint, OneNote and Outlook.
2. Office Professional 2016: Includes Home & Business 2016 plus Publisher and Access.

Office 365 Subscription
Purchasing an Office 365 subscription will give you more options and features to choose from. All Office 365 plans include online versions of Microsoft Office, access to a one Drive capacity of 1 TB, the Sway presentation creator, and a guaranteed uptime of 99%. However, those who opt for the Business or Enterprise upgrade will also benefit from both desktop and cloud access to Office, 50 GB of Outlook inbox storage, SharePoint, the Skype for Business IM, and access to Yammer, a corporate social network.
Factors to consider when choosing between Office 2016 and Office 365:

Features Required
There’s no point in paying for an all-singing, all-dancing version of Office if you’re not going to use all the features provided. If you require just the basic Office suite of Word, PowerPoint and Excel, a standalone version or an entry-level Office 365 plan will suit. For something more robust, or for access to all programs and greater storage, Office 365 Business or Enterprise will make sense.

Cloud Access
While Office 2016 allows files to be saved to the cloud, Office 365 gives greater accessibility as you can use the software with multiple devices and access online versions from ANY device with an Internet connection.

Cost per user is certainly one consideration, but you also need to think about whether you would prefer a large upfront payment (Office 2016) or to spread the cost with a monthly fee per user (Office 365).