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Microsoft 365 vs. Office 365 Comparison

Among Microsoft’s enterprise productivity suites, two products are often confused: Office 365 and Microsoft 365. Despite their similar names, these two packages differ significantly in terms of services, security features, and overall scope. On this page, you’ll find the key differences, shared features, and guidance on which plan best fits your organization’s needs.

Key Points to Know Before Making a Decision

We evaluate the differences between Office 365 and Microsoft 365 under these four main categories: 

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Scope of Packages

The two suites include different applicationsservicesand 
components.

Security Level

The degree of threat detectiondata protectionand identity 
security varies.

Management Capabilities

The ability to manage users 
and devices depends on the 
plan.
 

Licensing Model

Payment methods, update rights, and flexibility levels differ.

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Differences Between Office 365 and Microsoft 365

Review the key distinctions in terms of application scopesecuritydevice managementand licensing. 

Office 365

  • Office applications + cloud services
  • Basic security (MFA, anti-spam, anti-phishing)
  • No operating system included
  • No device management included
  • Basic eDiscovery and audit logs

Microsoft 365

  • All Office 365 features + Windows 11 + advanced security and device management
  • Advanced security (Microsoft Defender, endpoint management, advanced threat protection)
  • Windows 10/11 Enterprise license included
  • Comprehensive device management with Microsoft Intune
  • Advanced eDiscovery, data loss prevention, and compliance solutions

Security and Management Differences

Levels of data protectionaccess controland device management vary significantly between the plans. 

Office 365

  • Multi-Factor Authentication (MFA) 
  • Basic anti-spam and anti-phishing protection 
  • Basic eDiscovery and audit logs 
  • Security-focused add-ons available (Defender for Office 365, Azure AD Premium) 

Microsoft 365

Includes all Office 365 features plus: 

  • Windows 10/11 Enterprise license 
  • Device management with Microsoft Intune 
  • Endpoint protection with Microsoft Defender for Endpoint 
  • Advanced identity and access management (Azure AD Premium P1/P2) 
  • Compliance tools such as Data Loss Prevention (DLP), Advanced eDiscovery, and Insider Risk Management 

Operating SystemWindows 10/11 Enterprise

Microsoft 365 goes beyond Office applications and cloud services by also including a Windows 10 or 11 Enterprise license. This ensures: 

  • Licensed, up-to-date, and secure operating systems across all devices 
  • Access to enterprise security features such as BitLocker, Windows Hello, and Credential Guard 
  • A unified package for OS, productivity software, and security solutions 

Device ManagementMicrosoft Intune

Included with Microsoft 365, Intune enables centralized remote management of your organization’s computers, tablets, and mobile devices: 

  • Application deployment and update management 
  • Centralized enforcement of security policies 
  • Remote wipe for lost or stolen devices 
  • Protection of corporate data in BYOD (Bring Your Own Device) scenarios 

Advanced SecurityMicrosoft Defender

Microsoft 365 extends Office 365’s basic security with: 

  • Endpoint protection via Microsoft Defender for Endpoint 
  • Advanced identity and access management with Azure Active Directory Premium P1/P2 
  • Enhanced email and collaboration security with Microsoft Defender for Office 365 (Plan 1 or 2) 
  • Proactive defense features such as risk-based conditional access, Privileged Identity Management (PIM), and automated threat response, providing strong protection against 
    ransomware and targeted attacks 

Compliance and Regulation Microsoft Purview

For organizations needing to meet strict regulatory requirements, Microsoft 365 provides advanced compliance tools: 

  • Advanced eDiscovery: Detailed data analysis for legal investigations 
  • Data Loss Prevention (DLP): Prevents sensitive data from being exposed 
  • Information Protection: Classification and encryption for documents and emails 
  • Insider Risk Management: Monitoring and mitigation of insider threats 
  • Communication Compliance: Ensures corporate communications meet regulatory standards 

Our Advanced Specializations and Solution Designations

Leverage our Microsoft-recognized solution designations and advanced specializations to benefit from our proven expertise and take your organization’s digital transformation to the next level.  

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Frequently Asked Questions

What is the main difference between Office 365 and Microsoft 365?

Microsoft 365 includes the applications offered by Office 365, plus an operating system (Windows) and advanced security solutions.

Is Microsoft 365 more expensive?

Yes, but it provides additional value with enhanced security, device management, and a Windows license.

Does Office 365 only include applications?

Yes, Office 365 focuses on applications and cloud services; it does not include an operating system or device management.

Which operating system does Microsoft 365 include?

Microsoft 365 Enterprise plans come with a Windows 10 or 11 Enterprise license.

Will Office 365 eventually become Microsoft 365?

No, Office 365 will remain a separate product. However, Microsoft positions Microsoft 365 as its primary enterprise solution.

What does Microsoft 365 offer in terms of security?

It delivers threat prevention, identity management, and data protection through solutions like Defender, Intune, and Azure AD.

Can I manage devices with Office 365?

No, device management requires Microsoft Intune, which is only included with Microsoft 365 plans.

Can I switch between the two license types?

Yes, you can switch as your user base and organizational needs change.

Do all employees need Microsoft 365?

No, different licenses can be assigned based on roles. A hybrid licensing model can be created to meet specific needs.

How do I choose the right plan for my business?

If your needs are mainly focused on applications, Office 365 may be sufficient. But if security, device management, and scalability are priorities, Microsoft 365 is more suitable. For a detailed assessment, you can consult PEAKUP experts to determine the most appropriate license for your organization.

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