What is the difference between Microsoft 365 and Office 2021?

Microsoft 365

It's a subscription service that ensures you always have access to the latest productivity tools from Microsoft. Microsoft 365 plans are available for home and personal use, small and medium-sized businesses, large enterprises, educational institutions, and nonprofits.

Microsoft 365 plans include the powerful Office desktop applications you know, like Word, PowerPoint, and Excel. You also get additional online storage and cloud-connected features that let you collaborate on files in real time. With a subscription, you always get the latest features, patches, and security updates, along with year-round technical support at no additional cost. You can choose to pay for your subscription on a monthly or annual basis. The Microsoft 365 Family plan lets you share your subscription with up to six family members and use your apps across multiple PCs, Macs, tablets, and phones.

Office 2021

Office is sold as a one-time purchase, meaning you pay one upfront cost to get Office apps for one computer. One-time purchases are available for all PCs. However, there are no upgrade options, meaning if you plan to upgrade to the next major release, you will have to purchase it at full price.