Office Subscription Vs Purchase

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  1. Office 365 Subscription Vs Purchase
  2. Microsoft Office Subscription Vs Purchase
  3. Office Subscription Vs Purchase

Office 365, the purchase method Microsoft pushes most aggressively, is a subscription service, so payments are made monthly or annually. In some rare instances, annual payments may produce savings. Microsoft Office 2019 is the name for the standalone version that does not require a subscription. This means that you own the copy forever after the one-time purchase.

There is a newer version of this page as Microsoft have renamed Office 365 to Microsoft 365.

Should I buy Office 365 or the standard one-time purchase of Microsoft Office?

Office 365 is the subscription version of Office. This normally means that you buy a licence for a year at a time, although you can choose to pay monthly. You automatically purchase the current version of Office when you first subscribe and then you can choose to upgrade to the latest version (or not) whenever it is released. Otherwise in practical terms it is no different from the standard one-time Office. So basically you can just think of it as an alternative way of paying for Word, Excel, Outlook, PowerPoint and Access, or whichever applications you normally use.

Note that both 365 and one-time purchase are sold in various 'plans', which contain assorted combinations of the Office applications and allow use for different purposes. Essentially before you think about whether you want 365 or one-time, you need to decide which applications you want to be able to use (for example some plans do not include Access), and the purpose for which you want them (e.g. the student version is cheaper). Confusingly, the combinations available are not the same for 365 and one-time purchase, and neither is the naming!

Ms office subscription vs purchase

But if you are a standard, desktop user of Microsoft Office wanting to upgrade or purchase Office for a new P.C. then you can base your decision on the price you can find for 365 vs one-time in whichever plan you need and factor this against the expected life of your device, perhaps, as well as cash flow. Read on to make things more complicated if you want to.

Below is a summary table using actual prices and typical version requirements. Please see bottom of this page for a more detailed table.

DescriptionApplications wantedCost for 4 years on Office 365Cost of one-time purchase Office (per PC)
Home use*, single userWord, Excel, Outlook£171.60£99.00
Home use*, multiple users (max 5)Word, Excel, Outlook£247.96£99.00
Home use*, single userWord, Excel, Outlook, Access£171.60£114.00
Home use*, multiple users (max 5)Word, Excel, Outlook, Access£247.96£114.00
Business use (max 300 users)Word, Excel, Outlook£383.04 per user£99.00
Business use (unlimited users)Word, Excel, Outlook, Access£552.96 per user£114.00
Student - with proofWord, Excel, Outlook, Powerpoint£48.95£99.00
Student - with proofWord, Excel, Outlook, Powerpoint, Access£48.95£114.00

*Business use not permitted Starcraft into the void.

All prices include VAT. Prices correct as at January 2017. The table above is simply a guide, using the best prices found from reputable suppliers.

Firstly, you could consider whether you need to buy Office at all. Did you know about Office Online, which is the free version of Office that you can use in your web browser? You can read more about it here. You can't use Access this way, and the versions are not the full versions, but they may be sufficient for you.

Another consideration might be the value you place on always having the most up-to-date release version of Office - e.g. Office 2016. For some people this is a real bonus of 365 since, if you always want to have the latest version, you would otherwise have to purchase Office all over again. Microsoft are keen to emphasise this advantage, but it isn't all good..

In the business world it is often not a good thing to have users upgrading to the latest version spontaneously. This is particularly true with users of Access where you will find that many systems do not work when shared across a pool of users with difference versions of Office - e.g. a mixture of Office 2013 and Office 2016. An automatic upgrade is also unwelcome if you are someone providing IT support as it is often helpful to be able to keep your own installation of Office at the same version as your clients'. Unfortunately Microsoft are very keen on you making the most of your subscription and upgrading your Office 365 as soon as possible, so they provide an annoying and unwanted bar across the top of every application which you have either to ignore or to close every time you open something if you don't want to upgrade. This can be particularly irritating when looking at something that would normally fit the height of your screen but is pushed off the bottom by the extra strip added at the top.

If you do decide to purchase Office 365, do think about whether you want it to auto-renew or not. Naturally, Microsoft will encourage you to switch this option on so that they take the money automatically when your subscription is about to expire. Our own experience is that it is much cheaper to shop around and purchase a new Office 365 subscription from elsewhere. Note that there is no problem applying a fresh purchase of Office 365 to your existing subscription.

There are more factors to consider, coming soon (watch this space by bookmarking this page!).

Meanwhile, in summary, if you are a small business then the likelihood is that your decision will come down to price and price alone. If you are a larger company then one-time purchase is perhaps more likely to be your route.

Detailed table showing a variety of typical version requirements
DescriptionApplications wantedMicrosoft 365 nameOther applications providedNumber of users allowed per licenceNumber of devices allowed per userPriceDuration for this price (months)Cost for 4 yearsMicrosoft one-time nameOther applcations providedNumber of users allowed per licence**Number of devices allowed per userPrice (for PC version)Duration for this price
Home use*, single userWord, Excel, OutlookOffice 365 PersonalPowerPoint, OneNote, Publisher, Access11 PC/Mac, 1 tablet, 1 phone£42.9012£171.60Office Home & Business 2016PowerPoint, OneNote11 PC/Mac£99.00Unlimited
Home use*, multiple usersWord, Excel, OutlookOffice 365 HomePowerPoint, OneNote, Publisher, Access51 PC/Mac, 1 tablet, 1 phone£61.9912£247.96Office Home & Business 2016PowerPoint, OneNote11 PC/Mac£99.00Unlimited
Home use*, single userWord, Excel, Outlook, AccessOffice 365 PersonalPowerPoint, OneNote, Publisher11 PC/Mac, 1 tablet, 1 phone£42.9012£171.60Office Professional 2016PowerPoint, OneNote, Publisher11 PC/Mac£114.00Unlimited
Home use*, multiple usersWord, Excel, Outlook, AccessOffice 365 HomePowerPoint, OneNote, Publisher51 PC/Mac, 1 tablet, 1 phone£61.9912£247.96Office Professional 2016PowerPoint, OneNote, Publisher11 PC/Mac£114.00Unlimited
Business useWord, Excel, OutlookOffice 365 BusinessPowerPoint, OneNote, Publisher3005 PC/Macs, 5 tablets, 5 phones£7.98 per user1£383.04 per userOffice Home & Business 2016PowerPoint, OneNote11 PC/Mac£99.00Unlimited
Business useWord, Excel, Outlook, AccessOffice 365 ProPlusPowerPoint, OneNote, Publisher, Skype for businessUnlimited5 PC/Macs, 5 tablets, 5 phones£11.52 per user1£552.96 per userOffice Professional 2016PowerPoint, OneNote, Publisher11 PC/Mac£114.00Unlimited
Student - with proofWord, Excel, Outlook, PowerpointOffice 365 UniversityOneNote, Publisher, Access12 PC/Mac/tablets, 2 phones£48.9548£48.95Office Home & Business 2016OneNote11 PC/Mac£99.00Unlimited
Student - with proofWord, Excel, Outlook, Powerpoint, AccessOffice 365 UniversityOneNote, Publisher12 PC/Mac/tablets, 2 phones£48.9548£48.95Office Professional 2016OneNote, Publisher11 PC/Mac£114.00Unlimited

*Business use not permitted

**counting multiple users on the same PC/Mac as 1 user

All prices include VAT. Prices correct as at January 2017. The table above is simply a guide, using the best prices found from reputable suppliers.

If you enjoyed this article or found it useful, why not tell others about it? Digital painting programs.

Software-Matters is a UK software development team based in Gillingham, Dorset, and close to the counties of Somerset, Wiltshire and Hampshire. Nearby cities include Southampton, Bournemouth, Poole, Salisbury, Bristol and Bath.

Microsoft Office has been a longstanding staple in homes and workplaces for years. It has become a go-to productivity tool used by millions of workers. There are two basic versions of Microsoft Office. There's the traditional Microsoft Office one time purchase that has been around for quite some time. There is also the newer subscription-based version, Microsoft Office 365. So which option is the best option for you and what are the differences between the two plans? Today I'll take a look at both the monthly subscription plan and the one-time purchase option to help you make the best decision.

Microsoft 365 (formerly Office 365)

Microsoft's Office 365 is a subscription service that ensures users have the most modern productivity tools that Microsoft has to offer. There are multiple Microsoft Office 365 plans for home, business, large corporations, schools, and non-profits.

This subscription-based plan is considered the best option for users who want access to the full spectrum of Microsoft apps and perks on multiple devices. Users have access to the same benefits and apps that come with the one-time purchase Microsoft version but with added features, apps, and enhancements.

Word, Excel, Powerpoint, Outlook, Publisher, and Access are among the apps that users have access to across devices (PC, Mac, tablet, and phone). Up to six devices can access one account at one time and, depending on your subscription, users can share their account with up to five people for a total of six people with one subscription.

With the ability to access Microsoft Office 365 through multiple devices, users can start a document on their computer and access it easily on their phone or tablet at a later time. This ability to work across devices to easily get work done is unique with Microsoft Office 365 (the Microsoft Office one time purchase version does not include a cross-platform feature).

One of the biggest perks of Microsoft Office 365 is that users with this version will always be running the most current version of the apps.

Users never have to be concerned about new versions because it automatically updates every version and feature at no additional charge. This includes security updates, improvements, the latest features, and tools.

If you're a user who despises the cycle of updating your computers with the latest edition of Office every few years, then Microsoft Office 365 (recently rebranded to Microsoft 365) may be the right option for you.

Features Unique to 365

Microsoft Office 365 also comes with cloud features to enhance a user's productivity across devices.

Cloud Storage

With the subscription, users get 1TB of Microsoft's OneDrive cloud storage and up to 6TB in total when using a Family subscription. Subscribers can also purchase additional storage if needed. Up to an additional 1TB of storage can be purchased in 200GB increments for an additional $1.99 per month.

Technical Support

Technical support is also included with Microsoft Office 365, at no additional cost, for technical issues, subscription, and billing support. This differs from the one time purchase version of Microsoft which only has free technical support for installs.

Service vs Product

Like other subscription services, Microsoft Office 365 provides its users a service as opposed to just a product. Subscribers are given the right to run the suite's applications and access associated services. This service is only provided as long as payments continue. Once a user stops paying, the user loses their rights to run the applications and services. Users will have 30 days past the previous payment's due date to continue operating as normal.

You Have to Keep Paying

Just like subscription services are contingent on payment, so is the license for Microsoft Office 365. If payments are no longer made, then the license is revoked. Users can restore the license by resuming payments.

One Time Purchase Microsoft Office

The Microsoft Office one time purchase option is the more traditional route to use with Microsoft Office.

With the one time purchase option, users pay a single, upfront cost for one license/computer. This is Microsoft's stand-alone version of its popular suite of office apps. With no monthly or yearly subscription, users make a one time purchase which means they own that software license forever.

This version allows users to install their Microsoft Office apps on one computer and get security updates. Users are unable to access follow-up versions or access new features and tools unless they purchase it again at full price.

Although this version comes with apps that include Word, Excel, Powerpoint, and Outlook, it does not include some of the features that come with Microsoft Office 365.

Office 365 Subscription Vs Purchase

Some of the features not included are:

  • cloud storage,
  • ongoing technical support, and
  • the ability to work across devices.

The one time purchase option provides users with the license to legally run the software and gives the purchaser the right to use their version in perpetuity.

This means that there is no expiration date and the purchaser can use the MS Office Suite for as long as they like without paying any recurring fee.

Side by Side Comparison

Cost Comparison: MS Office Subscription vs One Time Purchase

Now that we've looked at what each version has to offer, let's talk cost.

  • The one time purchase of Microsoft Office Home and Business is $249.99 per license.
  • The one time purchase of Microsoft Office Home and Student is $149.99 per license.

So if users are looking to upgrade multiple computers at once (for example for a business), then purchasing the one-time version could be costly up-front.

Office 365 has two options for home users:

  • Microsoft 365 Family – Offers users one convenient subscription for up to 6 people at $99.99 a year or $9.99 a month.
  • Microsoft 365 Personal – Intended for use by one person for $69.99 a year or $6.99 a month.

Business users have three options with Microsoft Office 365: Logic tempo curve.

  • Business Basic – $5.00 per month/per user
  • Standard – $12.50 per month/per user
  • Premium – $20.00 per month/per user

Microsoft Office 365 also offers users an app-only option for $8.25 per month/per user. All business subscriptions require an annual commitment, which is different from G Suite, which is month-to-month.

Microsoft Office Subscription Vs Purchase

So, Which Version Should You Choose?

Subscription

But if you are a standard, desktop user of Microsoft Office wanting to upgrade or purchase Office for a new P.C. then you can base your decision on the price you can find for 365 vs one-time in whichever plan you need and factor this against the expected life of your device, perhaps, as well as cash flow. Read on to make things more complicated if you want to.

Below is a summary table using actual prices and typical version requirements. Please see bottom of this page for a more detailed table.

DescriptionApplications wantedCost for 4 years on Office 365Cost of one-time purchase Office (per PC)
Home use*, single userWord, Excel, Outlook£171.60£99.00
Home use*, multiple users (max 5)Word, Excel, Outlook£247.96£99.00
Home use*, single userWord, Excel, Outlook, Access£171.60£114.00
Home use*, multiple users (max 5)Word, Excel, Outlook, Access£247.96£114.00
Business use (max 300 users)Word, Excel, Outlook£383.04 per user£99.00
Business use (unlimited users)Word, Excel, Outlook, Access£552.96 per user£114.00
Student - with proofWord, Excel, Outlook, Powerpoint£48.95£99.00
Student - with proofWord, Excel, Outlook, Powerpoint, Access£48.95£114.00

*Business use not permitted Starcraft into the void.

All prices include VAT. Prices correct as at January 2017. The table above is simply a guide, using the best prices found from reputable suppliers.

Firstly, you could consider whether you need to buy Office at all. Did you know about Office Online, which is the free version of Office that you can use in your web browser? You can read more about it here. You can't use Access this way, and the versions are not the full versions, but they may be sufficient for you.

Another consideration might be the value you place on always having the most up-to-date release version of Office - e.g. Office 2016. For some people this is a real bonus of 365 since, if you always want to have the latest version, you would otherwise have to purchase Office all over again. Microsoft are keen to emphasise this advantage, but it isn't all good..

In the business world it is often not a good thing to have users upgrading to the latest version spontaneously. This is particularly true with users of Access where you will find that many systems do not work when shared across a pool of users with difference versions of Office - e.g. a mixture of Office 2013 and Office 2016. An automatic upgrade is also unwelcome if you are someone providing IT support as it is often helpful to be able to keep your own installation of Office at the same version as your clients'. Unfortunately Microsoft are very keen on you making the most of your subscription and upgrading your Office 365 as soon as possible, so they provide an annoying and unwanted bar across the top of every application which you have either to ignore or to close every time you open something if you don't want to upgrade. This can be particularly irritating when looking at something that would normally fit the height of your screen but is pushed off the bottom by the extra strip added at the top.

If you do decide to purchase Office 365, do think about whether you want it to auto-renew or not. Naturally, Microsoft will encourage you to switch this option on so that they take the money automatically when your subscription is about to expire. Our own experience is that it is much cheaper to shop around and purchase a new Office 365 subscription from elsewhere. Note that there is no problem applying a fresh purchase of Office 365 to your existing subscription.

There are more factors to consider, coming soon (watch this space by bookmarking this page!).

Meanwhile, in summary, if you are a small business then the likelihood is that your decision will come down to price and price alone. If you are a larger company then one-time purchase is perhaps more likely to be your route.

Detailed table showing a variety of typical version requirements
DescriptionApplications wantedMicrosoft 365 nameOther applications providedNumber of users allowed per licenceNumber of devices allowed per userPriceDuration for this price (months)Cost for 4 yearsMicrosoft one-time nameOther applcations providedNumber of users allowed per licence**Number of devices allowed per userPrice (for PC version)Duration for this price
Home use*, single userWord, Excel, OutlookOffice 365 PersonalPowerPoint, OneNote, Publisher, Access11 PC/Mac, 1 tablet, 1 phone£42.9012£171.60Office Home & Business 2016PowerPoint, OneNote11 PC/Mac£99.00Unlimited
Home use*, multiple usersWord, Excel, OutlookOffice 365 HomePowerPoint, OneNote, Publisher, Access51 PC/Mac, 1 tablet, 1 phone£61.9912£247.96Office Home & Business 2016PowerPoint, OneNote11 PC/Mac£99.00Unlimited
Home use*, single userWord, Excel, Outlook, AccessOffice 365 PersonalPowerPoint, OneNote, Publisher11 PC/Mac, 1 tablet, 1 phone£42.9012£171.60Office Professional 2016PowerPoint, OneNote, Publisher11 PC/Mac£114.00Unlimited
Home use*, multiple usersWord, Excel, Outlook, AccessOffice 365 HomePowerPoint, OneNote, Publisher51 PC/Mac, 1 tablet, 1 phone£61.9912£247.96Office Professional 2016PowerPoint, OneNote, Publisher11 PC/Mac£114.00Unlimited
Business useWord, Excel, OutlookOffice 365 BusinessPowerPoint, OneNote, Publisher3005 PC/Macs, 5 tablets, 5 phones£7.98 per user1£383.04 per userOffice Home & Business 2016PowerPoint, OneNote11 PC/Mac£99.00Unlimited
Business useWord, Excel, Outlook, AccessOffice 365 ProPlusPowerPoint, OneNote, Publisher, Skype for businessUnlimited5 PC/Macs, 5 tablets, 5 phones£11.52 per user1£552.96 per userOffice Professional 2016PowerPoint, OneNote, Publisher11 PC/Mac£114.00Unlimited
Student - with proofWord, Excel, Outlook, PowerpointOffice 365 UniversityOneNote, Publisher, Access12 PC/Mac/tablets, 2 phones£48.9548£48.95Office Home & Business 2016OneNote11 PC/Mac£99.00Unlimited
Student - with proofWord, Excel, Outlook, Powerpoint, AccessOffice 365 UniversityOneNote, Publisher12 PC/Mac/tablets, 2 phones£48.9548£48.95Office Professional 2016OneNote, Publisher11 PC/Mac£114.00Unlimited

*Business use not permitted

**counting multiple users on the same PC/Mac as 1 user

All prices include VAT. Prices correct as at January 2017. The table above is simply a guide, using the best prices found from reputable suppliers.

If you enjoyed this article or found it useful, why not tell others about it? Digital painting programs.

Software-Matters is a UK software development team based in Gillingham, Dorset, and close to the counties of Somerset, Wiltshire and Hampshire. Nearby cities include Southampton, Bournemouth, Poole, Salisbury, Bristol and Bath.

Microsoft Office has been a longstanding staple in homes and workplaces for years. It has become a go-to productivity tool used by millions of workers. There are two basic versions of Microsoft Office. There's the traditional Microsoft Office one time purchase that has been around for quite some time. There is also the newer subscription-based version, Microsoft Office 365. So which option is the best option for you and what are the differences between the two plans? Today I'll take a look at both the monthly subscription plan and the one-time purchase option to help you make the best decision.

Microsoft 365 (formerly Office 365)

Microsoft's Office 365 is a subscription service that ensures users have the most modern productivity tools that Microsoft has to offer. There are multiple Microsoft Office 365 plans for home, business, large corporations, schools, and non-profits.

This subscription-based plan is considered the best option for users who want access to the full spectrum of Microsoft apps and perks on multiple devices. Users have access to the same benefits and apps that come with the one-time purchase Microsoft version but with added features, apps, and enhancements.

Word, Excel, Powerpoint, Outlook, Publisher, and Access are among the apps that users have access to across devices (PC, Mac, tablet, and phone). Up to six devices can access one account at one time and, depending on your subscription, users can share their account with up to five people for a total of six people with one subscription.

With the ability to access Microsoft Office 365 through multiple devices, users can start a document on their computer and access it easily on their phone or tablet at a later time. This ability to work across devices to easily get work done is unique with Microsoft Office 365 (the Microsoft Office one time purchase version does not include a cross-platform feature).

One of the biggest perks of Microsoft Office 365 is that users with this version will always be running the most current version of the apps.

Users never have to be concerned about new versions because it automatically updates every version and feature at no additional charge. This includes security updates, improvements, the latest features, and tools.

If you're a user who despises the cycle of updating your computers with the latest edition of Office every few years, then Microsoft Office 365 (recently rebranded to Microsoft 365) may be the right option for you.

Features Unique to 365

Microsoft Office 365 also comes with cloud features to enhance a user's productivity across devices.

Cloud Storage

With the subscription, users get 1TB of Microsoft's OneDrive cloud storage and up to 6TB in total when using a Family subscription. Subscribers can also purchase additional storage if needed. Up to an additional 1TB of storage can be purchased in 200GB increments for an additional $1.99 per month.

Technical Support

Technical support is also included with Microsoft Office 365, at no additional cost, for technical issues, subscription, and billing support. This differs from the one time purchase version of Microsoft which only has free technical support for installs.

Service vs Product

Like other subscription services, Microsoft Office 365 provides its users a service as opposed to just a product. Subscribers are given the right to run the suite's applications and access associated services. This service is only provided as long as payments continue. Once a user stops paying, the user loses their rights to run the applications and services. Users will have 30 days past the previous payment's due date to continue operating as normal.

You Have to Keep Paying

Just like subscription services are contingent on payment, so is the license for Microsoft Office 365. If payments are no longer made, then the license is revoked. Users can restore the license by resuming payments.

One Time Purchase Microsoft Office

The Microsoft Office one time purchase option is the more traditional route to use with Microsoft Office.

With the one time purchase option, users pay a single, upfront cost for one license/computer. This is Microsoft's stand-alone version of its popular suite of office apps. With no monthly or yearly subscription, users make a one time purchase which means they own that software license forever.

This version allows users to install their Microsoft Office apps on one computer and get security updates. Users are unable to access follow-up versions or access new features and tools unless they purchase it again at full price.

Although this version comes with apps that include Word, Excel, Powerpoint, and Outlook, it does not include some of the features that come with Microsoft Office 365.

Office 365 Subscription Vs Purchase

Some of the features not included are:

  • cloud storage,
  • ongoing technical support, and
  • the ability to work across devices.

The one time purchase option provides users with the license to legally run the software and gives the purchaser the right to use their version in perpetuity.

This means that there is no expiration date and the purchaser can use the MS Office Suite for as long as they like without paying any recurring fee.

Side by Side Comparison

Cost Comparison: MS Office Subscription vs One Time Purchase

Now that we've looked at what each version has to offer, let's talk cost.

  • The one time purchase of Microsoft Office Home and Business is $249.99 per license.
  • The one time purchase of Microsoft Office Home and Student is $149.99 per license.

So if users are looking to upgrade multiple computers at once (for example for a business), then purchasing the one-time version could be costly up-front.

Office 365 has two options for home users:

  • Microsoft 365 Family – Offers users one convenient subscription for up to 6 people at $99.99 a year or $9.99 a month.
  • Microsoft 365 Personal – Intended for use by one person for $69.99 a year or $6.99 a month.

Business users have three options with Microsoft Office 365: Logic tempo curve.

  • Business Basic – $5.00 per month/per user
  • Standard – $12.50 per month/per user
  • Premium – $20.00 per month/per user

Microsoft Office 365 also offers users an app-only option for $8.25 per month/per user. All business subscriptions require an annual commitment, which is different from G Suite, which is month-to-month.

Microsoft Office Subscription Vs Purchase

So, Which Version Should You Choose?

The Microsoft Office one time purchase version may be more enticing than the monthly subscription for some, but it lacks the features and supports of Microsoft Office 365.

However, if you only need the basic features on a single computer, then the one time purchase could be sufficient for your needs. Personally – I run my own digital marketing agency from my home office, and I only need the one license … so that's what I have and use.

Office Subscription Vs Purchase

For users who intend to keep the same version of Office for many years, the one time purchase option may be the most cost-effective choice in the long run.

With that said …

If you're looking for access to a suite of apps, extra storage, and cloud-connected features, then Microsoft Office 365 may be the right choice for you.

Microsoft's subscription-based license comes with the added benefits of the latest features and tools, security updates, and ongoing technical support. A subscription is the best choice for users who frequently update their version of Office and those who need a budget-friendly way to add Office to multiple computers (which is why it has become so popular with businesses.





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