Understanding Office licenses: Which one best suits your needs?

In the digital era, productivity software like Microsoft Office has become an indispensable tool for individuals and businesses. But choosing the right Office license can be confusing given the variety of options. This blog explains the different types of licenses so you can decide which one best suits your needs.

Types of Office licenses

There are two main types of licenses when purchasing Microsoft Office: Subscription-based licenses and perpetual licenses. Each offers its own advantages and possible disadvantages - depending on the area of application.

Subscription-based license (Office 365 / Microsoft 365)

Office 365 (now Microsoft 365) is a subscription-based service where you pay a recurring fee - monthly or annually. This license allows users to always have access to the latest version of Office applications such as Word, Excel, PowerPoint and more. The subscription also includes cloud storage via OneDrive and collaboration tools such as Microsoft Teams - ideal for businesses or people working remotely.

Key advantages:

  • Always up to dateMicrosoft-365 subscribers receive continuous updates and therefore always use the latest software version.
  • Access from anywhereIntegration with OneDrive means you can open your files on any device and from anywhere.
  • Collaborative functionsIntegration with cloud services and tools such as Teams facilitates real-time collaboration.

Who is it suitable for?

Subscription-based licenses are ideal for companies and individuals who value the latest features and need cloud access for easy collaboration.

Perpetual license (one-time purchase)

A perpetual license allows you to purchase Microsoft Office with a one-time payment. This gives you lifetime access to the software version you have purchased. Future updates are not included.

Key advantages:

  • One-off costsYou only pay once and there are no recurring fees.
  • No expiry timeYou have lifetime access to the purchased version.
  • StabilityIf you don't necessarily need the latest features, this option offers long-term usability without worrying about renewals.

Who is it suitable for?

If you prefer to own your software outright and don't need constant updates or cloud collaboration, a perpetual license is a cost-effective option - especially for small businesses or personal use.

Which license is right for you?

The right choice depends on your individual needs. If you want the latest features and seamless collaboration options, then Microsoft 365 is the best option. However, if you prefer stability and have no problem with an older software version, a unlimited license long-term cost advantages.

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