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Office 365 becomes Microsoft 365: What that means for you

Licences to kill: Changes to Office 365 licence types, from Office 365 to Microsoft 365

Something Earth-shattering has happened in the Microsoft world. From the 1st of May 2020, the tech giant’s flagship productivity suite Office 365 became Microsoft 365. We’ll explain what these changes to Office 365 licence types mean for businesses – and also consumers – and explore how this fits into a wider trend for Microsoft. Read on to learn more. 

What’s in a name?  

Microsoft 365 has already existed for businesses since way back in 2017. That was when Microsoft first bundled Office 365, Windows 10 and more into one package: a step that many would describe as bringing us all closer to Microsoft-as-a-Service. More on that later.   

With so much overlap between the two offerings, abandoning Office 365 and going all-in with Microsoft 365 addresses customer confusion. As well as Office, the original Microsoft 365 package also included Windows 10, as well as Microsoft Enterprise Mobility + Security – a big draw for customers as well. This move is intended to simplify things, focus Microsoft’s offerings, and make it clearer for customers what’s available and what they should choose.     

The reinvented Microsoft 365 now offers all Microsoft’s indispensable business tools packaged in a series of tiers, from ‘basic’ to premium’. These new tiers correspond with the existing Office 365 packages. For instance, Office 365 Business Essentials is now Microsoft 365 Business Basic. Check out the table below to see how they’ve been grouped.  

Don’t panic! 

OK, we’re sorry for alarming you earlier. Maybe ‘Earth-shattering’ was a little over the top. Existing Office 365 subscribers don’t need to worry. As you can see, there are no changes to which Microsoft apps, services and features you receive. And the prices haven’t changed, either. Customers don’t need to do anything to move to Microsoft 365 – your subscription updates automatically.  

These changes to how Microsoft’s products and services are positioned may take some getting used to. It’s possible there could be more in the future as Microsoft refines their portfolio further. But for now, if you’re a Microsoft reseller or you work elsewhere in the Microsoft 365 or Office 365 ecosystem, there shouldn’t be too much disruption to your business.  

And there’s good news for new customers looking to get on board with the new Microsoft 365. Microsoft has announced that it’s offering small businesses six months’ free Microsoft 365 Business Basic. Right now, many organisations are grappling with the need to move to remote working as quickly as possible, catalysed by social distancing and the COVID-19 coronavirus crisis. Right now, businesses need all the help they can get to maximise productivity and stay on track, so this will come as welcome news to many.  

Microsoft 365 for personal and family users 

The changes in Microsoft’s enterprise offerings are also accompanied by changes in the consumer sphere. Although businesses have been on board with Microsoft 365 for some years now, personal and family subscriptions are finally following suit with the arrival of Microsoft 365 Personal and Family.  

Microsoft has called the new Microsoft 365 Personal and Family ‘the subscription service for your life’. They’re packaging up everything for consumers, including the latest desktop and browser-based Office apps, 1TB of OneDrive cloud storage per person, 60 minutes of Skype calling, as well as advanced security features and tech support.  

Personal and family users will also have access to a range of new AI and cloud-powered features. They’ll receive more than 8,000 images and 175 looping videos from Getty Images, as well as 300 new fonts and 2,800 new icons for use in Word and Excel. They also get more than 200 new templates for Word, Excel and PowerPoint.  

Microsoft’s Editor writing assistant is also coming to Word and Outlook.com, as well as Google Chrome and Microsoft Edge Extensions. Forthcoming Excel features include Money, which helps consumers to track, manage and analyse their spending. And PowerPoint now includes the AI-driven Presenter Coach, which looks at tone of voice and grammar, helping people to give better presentations.  

There is also new functionality planned for outlook, bringing together personal and work calendars so users can better manage commitments in their working and personal lives. And a new Microsoft Family Safety app for Android and iOS allows families to manage screen time across Windows and Android devices, as well as Microsoft’s Xbox gaming consoles. Parents can easily monitor their children’s internet usage and gaming, set limits, and keep them away from age-inappropriate content. It also provides location sharing to help keep tabs on everyone and keep them safe.  

Changes to Office 365 licence types: The latest step toward Microsoft-as-a-Service 

Thchanges to Office 365 licence types is Microsoft’s latest move toward simplifying and consolidating their branding and services. It’s part of a trajectory that began when they first introduced Office 365 in 2011. When Microsoft’s Jerry Nixon announced at Inspire 2015 that Windows 10 would be the ‘last version of Windows’, it was another sign of where the future is headed: Microsoft-as-a-Service.  

Enterprise customers have had a while to get to grips with the as-a-service model and its numerous benefits. For instance: swapping sporadic, larger capital expenditures (CapEx) for smaller, regular and more easily planned and managed operating expenses (OpEx). Spotify, Netflix and other services have already gotten consumers used to consuming their digital content on a subscription basis, from consolidated sources. It seems Microsoft has decided that they’re now ready to extend this to their operating system as well as their word processor, spreadsheet, and other tools.  

Powered by the cloud revolution, this paradigm shift in the way we pay for and use our technology is changing everything, and it’s the way the wind’s been blowing for some time. We’re interested to see where the road will ultimately take us.  

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Alex Carnegie

Alex Carnegie

Alex loves writing and technology, so he jumped at the chance to combine the two as a writer at Fifty Five and Five.