The difference between Office 365 Home and Business

Something many people are confused about is the difference between two Microsoft products: Office 365 Home, and Office 365 Business.

The difference is actually fairly simple, though it can become murky when using the terms interchangeably:

• Office 365 Home is the Office suite of software, such as Word, Excel, PowerPoint, Outlook, and so on. You can sign up for a Home account using any email address you like, and then order a subscription which allows you to download the software onto your devices.
• Office 365 Business, on the other hand, is a business-grade email service (including managing your contacts and calendar items).

Where it gets a little cloudy is the fact that through Business, you can actually add on the Office software (Word, Excel, etc) to your mailbox licence. So this becomes email + software. Or, you can just order the software and forget the email accounts.

There are also different licence types, meaning if you’re running a business, you contractually are not allowed to use the Home software. You need to sign up for a Business plan and then purchase the software.

So, what’s right for me?

Well, it’s pretty straightforward: If you’re operating a business, forget about Office 365 Home completely. It’s unsuitable, has less features, and you’re not legally allowed to use it anyway.