What is Microsoft 365?
A plain-English overview of Microsoft 365 — what's included, how the apps work together, and whether it's the right choice for your business.
If you use Outlook for email, Word to write documents, or Teams for video calls, you are already using Microsoft 365. It is a subscription service from Microsoft that bundles together email, file storage, and office apps — all connected under one account.
Quick summary
Microsoft 365 is a monthly or annual subscription that gives every person on your team a business email address, 1 TB of cloud storage, and access to apps like Word, Excel, PowerPoint, Outlook, and Teams. Everything is managed from one admin portal, and it works on computers, phones, and in a web browser.
What's included in Microsoft 365?
Microsoft 365 is not just one app. It is a collection of tools that work together. Here are the main ones:
| App | What it does |
|---|---|
| Outlook | Business email and calendar |
| Word | Writing documents |
| Excel | Spreadsheets and data |
| PowerPoint | Presentations |
| Teams | Chat, calls, and video meetings |
| OneDrive | Personal cloud file storage |
| SharePoint | Shared file libraries for your team |
| OneNote | Digital note-taking |
You access these apps in a web browser at microsoft365.com, or you can install the desktop versions on your computer.
How does it work as a business service?
When you subscribe to Microsoft 365 for business, you get:
- A domain-based email address — like
you@yourcompany.com— rather than a generic@outlook.comor@hotmail.comaddress. - A central admin center where you can add or remove people, reset passwords, and manage security.
- 1 TB of OneDrive storage per user for files and documents.
- Automatic updates — you always have the latest version of every app.
One person in your team — usually the owner or office manager — has the admin role. They manage everyone else's accounts.
Microsoft 365 vs Microsoft Office
You may have heard of "Microsoft Office" — that was the old name for the boxed software you bought once. Microsoft 365 is the modern subscription version. It includes everything Office used to include, plus cloud storage, Teams, and ongoing updates.
Microsoft 365 vs Google Workspace
Many businesses compare Microsoft 365 to Google Workspace. Both do similar things — email, file storage, and collaboration tools — but with different apps and interfaces.
Microsoft 365 is often a good fit if:
- Your team already knows Word, Excel, and Outlook
- You work with a lot of complex spreadsheets or documents
- You use Windows PCs
- You need Microsoft Teams for internal communication
Google Workspace may suit you better if:
- Your team prefers working in a browser
- You rely heavily on Google Docs or Sheets already
- You want simpler, more affordable admin tools
For a detailed side-by-side comparison, see Google Workspace vs Microsoft 365.
Is Microsoft 365 the same as Office 365?
Yes — Office 365 was the older name. Microsoft rebranded it to Microsoft 365 in 2020. If someone refers to "Office 365," they mean the same thing.
Common questions
Related guides
- Microsoft 365 plans explained
- Signing in to Microsoft 365
- The Microsoft 365 admin center, explained
- Google Workspace vs Microsoft 365: how to choose
- What is Google Workspace?
Need a hand?
Learn more
Microsoft 365 — the complete client guide
Everything you need to manage your Microsoft 365 account, from adding users and setting up Outlook to securing your team and understanding your bill.
Microsoft 365 plans explained
A plain-English guide to Microsoft 365 business plans — what each one includes, who it suits, and how to choose the right one.