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Microsoft 365

Office 365 vs Microsoft 365: what is the difference?

Office 365 and Microsoft 365 are mostly the same product, renamed in 2020. Microsoft 365 adds Windows, security, and device management on business and enterprise plans. Here is how to choose the right plan.

By Wil Gibson June 13, 2026
Office 365 vs Microsoft 365: what is the difference?

Office 365 and Microsoft 365 are, for most plans, the same product under a new name. In April 2020 Microsoft renamed its Office 365 small business and consumer plans to Microsoft 365, to reflect that the subscription is more than Office apps: it now bundles security, device management, and cloud services. A few enterprise plans kept the Office 365 name, but the differences that matter are about what each plan includes, not the label.

Why did Office 365 become Microsoft 365?

Microsoft 365 reflects a bigger bundle. Office 365 was built around the Office apps, Word, Excel, Outlook, plus cloud email and storage. Microsoft 365 keeps all of that and adds Windows licensing on business and enterprise plans, along with security and device management through tools like Intune and Microsoft Defender. The rename signaled that you are buying a productivity and security platform, not just Office.

What is still called Office 365?

Three enterprise plans kept the Office 365 name: Office 365 E1, E3, and E5. These are aimed at larger organizations and focus on the productivity and compliance tools without the Windows and advanced device-management pieces bundled into the Microsoft 365 enterprise plans. If you run one of these, your service did not change, only the surrounding lineup did.

Microsoft 365 business plans: which one fits?

For most small and mid-sized businesses, the choice is among Microsoft 365 Business Basic, Standard, and Premium. Basic is web and mobile apps with email. Standard adds the desktop Office apps. Premium adds the security and device management most businesses actually need: advanced threat protection, device management, and information protection. Premium is usually the right call once you care about security and compliance, because buying those pieces separately costs more.

Which should your business choose?

Do not pick by the name on the box. Pick by what is included and, just as important, what you are paying for but not using, a common and expensive mistake. The right plan depends on whether you need desktop apps, how much security and compliance you require, and whether Windows licensing is bundled in. bdManagedIT reviews your Microsoft licensing, removes what you do not use, and makes sure you are on the plan that fits, as part of managed Microsoft 365 support. To estimate fully managed Microsoft 365 and IT support for your team, try the cost calculator.

Frequently asked questions

Is Office 365 the same as Microsoft 365?
For most plans, yes. In 2020 Microsoft renamed its Office 365 small business and consumer subscriptions to Microsoft 365. The Microsoft 365 business and enterprise plans add Windows licensing, security, and device management on top of the familiar Office apps and email.
Why did Microsoft rename Office 365?
To reflect that the subscription grew beyond the Office apps. Microsoft 365 bundles productivity, security, device management, and cloud services into one license, so the name signals a platform rather than just Word, Excel, and Outlook.
Is Office 365 still available?
Yes, three enterprise plans kept the name: Office 365 E1, E3, and E5. They focus on productivity and compliance for larger organizations. Most small and mid-sized businesses are on the Microsoft 365 Business plans instead.
Which Microsoft 365 plan is best for a small business?
Business Premium is the common choice once security matters, because it bundles advanced threat protection and device management that would cost more bought separately. Basic or Standard can fit if you only need email and the apps. The right answer depends on your security and compliance needs.
Can bdManagedIT manage our Microsoft 365?
Yes. We set up and manage Microsoft 365 for businesses across North Georgia, including security configuration, device management, backups, and right-sizing your licensing so you stop paying for features you do not use. As a Microsoft Solutions Partner, it is a core part of our managed IT.

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