A company of any size can count on Microsoft Office as the standard business suite. In the past, when you just purchased the latest version to gain access to new features, you now have two options: Upgrade to Microsoft Office 2016 (the 17th software release) at a one-time fee, or subscribe to Office 365 – a monthly subscription option of the software with additional cloud-based benefits.

Comparison of Office 2016 and Office 365

You can install Microsoft Office 2016 on any PC within your network for a one-time cost. This is the latest version of Office that you’re familiar with. For a monthly or annual fee, Office 365 provides users with access to Microsoft’s suite of apps.

However, Microsoft’s cloud-based version has additional advantages, as well as compatibility and usability concerns. Here are the essential considerations when choosing between Microsoft Office 2016 and Office 365.

Usability and “look and feel” issues.

Many people have used Microsoft Office extensively for everything from school projects to work, which makes it an extremely popular piece of business software.

While some might be happy to use web browsers to run Microsoft Office, others desire the familiarity of software installed on your desktop. Microsoft Office 2016 may therefore outperform Microsoft Office 365 Business Essentials in this respect. With Office 365 Business and Office 365 Business Premium, you can access Outlook, Powerpoint, Word, Excel, and Access on your desktop.

Older Office documents are compatible

Office 365 also offers seamless integration with existing documents created using Microsoft Office – whether they were created internally or externally (such as those created by clients). The two can be connected seamlessly with Office 365. Office 365 allows you to edit and move documents created with Microsoft Office into the cloud, whether they were created in Office 2016 or earlier.

Compared to Office 365, Office 2016 allows you to update software

If you buy Microsoft Office 2016, you will only get the features available at the time, and you’ll receive free security and bug-fix updates. However, Office 365 allows you to continuously upgrade to the latest features in the subscription, so you’ll never be stuck with outdated software.

Older versions of Office have been available for many years, and they are optional for all businesses. Assume that cloud services will likely end the support for this application, and that employees expect regular updates from time to time. There is something to be applauded about Office 365’s quick and low-maintenance updates in that case.

Capabilities in security

One of the biggest advantages of Office 365 over Microsoft Office 2016 is its enhanced security measures. For example, lost and stolen devices can have their data remotely deleted by integrating the Microsoft Enterprise Mobility Suite with Office 365. Antivirus and malware programs can also be updated automatically through the cloud.

Online collaboration and storage

OneDrive and SharePoint Online offer remote working advantages as well as allowing your employees to work on the same document simultaneously and see their changes in real-time. In contrast to using a shared server where you can’t edit a document if anyone else has it open on their device, this is a vast improvement.

BYOD and remote working capabilities

Per license, Microsoft Office 2016 can only be installed on one computer. Most users access and save documents locally or on a shared server, but because more than three quarters of employees use personal mobile devices for work, Office 365 offers a variety of cloud-based benefits.

It is not only possible to use Word and Outlook on any browser, but also through Android and iOS apps. OneDrive (which comes with every Office 365 plan) and SharePoint Online (which can be purchased separately or as a component of Office 365 or individually) allow employees to store and access documents online, improving productivity.