Microsoft 365
Word, Excel, Outlook, Teams and OneDrive in one subscription
Microsoft 365 is a personal productivity tool for Small businesses and Enterprise, offered as freemium ($2/mo). Founded in United States in 2011.
About Microsoft 365
Microsoft 365 is Microsoft's subscription suite of productivity apps and cloud services: Word, Excel, PowerPoint, Outlook, OneNote, OneDrive and, on business plans, Teams, Exchange email and SharePoint. It grew out of Office 365, launched in 2011, and took the Microsoft 365 name for consumer and small-business plans in 2020. Copilot AI is now built into the apps.
The suite is split into home and business lines. Free web and mobile apps work with a Microsoft account and 5 GB of OneDrive. Home plans run from Basic at $1.99 a month (100 GB, no desktop apps) to Personal, Family and Premium, which add desktop apps, 1 to 2 TB of storage and growing Copilot limits. Business plans start at Business Basic (web apps, Teams, email), Business Standard adds desktop apps, and Business Premium adds Intune device management and Defender security.
Microsoft 365 fits any organization that lives in Excel and Outlook, needs strong admin and compliance controls, or works with clients who send Office files. Real-time co-editing is good but feels less fluid than in Google Workspace, and the licensing maze confuses small buyers. Google Drive with Docs suits browser-first teams, Notion is better for wikis and lightweight project docs, and Slack offers a richer chat ecosystem than Teams.
Microsoft raised US business list prices on July 1, 2026: Business Basic moved from $6 to $7 and Business Standard from $12.50 to $14 per user per month, while Business Premium stayed at $22. Existing customers keep old pricing until their first renewal after that date.
Key features of Microsoft 365
- Desktop, web and mobile versions of Word, Excel, PowerPoint and Outlook
- Copilot in Word, Excel, PowerPoint and Outlook on paid home plans
- OneDrive cloud storage from 100 GB up to 2 TB on home plans
- Teams chat, meetings and webinars on Business plans
- Exchange business email with custom domains and 50 GB mailboxes
- SharePoint intranet sites and document libraries for teams
- Intune device management and Defender security in Business Premium
- Family plan sharing with up to six people
Pros and cons
Pros
- Industry-standard file formats and the most capable spreadsheet in Excel
- Desktop apps remain more powerful than any browser-based rival
- Business Premium bundles security and device management at a fair price
- Free web apps cover light editing without a subscription
- Turkish and dozens of other interface languages
Cons
- Plan and add-on licensing is confusing for small buyers
- July 2026 increase raised Business Basic and Standard prices
- Copilot usage limits and features vary by plan and region
- Teams and SharePoint can feel heavy for small teams
- Real-time co-editing less smooth than Google Docs
Microsoft 365 pricing
Microsoft 365 uses a freemium model. A 30-day free trial is available.
| Plan | Price | Includes |
|---|---|---|
| Microsoft 365 Basic | $1.99 / mo | 100 GB OneDrive and ad-free Outlook; no desktop apps or AI |
| Personal | $9.99 / mo | $99.99/year; 1 person, 1 TB, desktop apps with Copilot |
| Family | $12.99 / mo | $129.99/year; up to 6 people, 2 TB shared, Copilot for owner |
| Premium | $19.99 / mo | $199.99/year; Family plus extensive Copilot usage |
| Business Basic | $7 / user/mo | Annual commitment; web and mobile apps, Teams, 1 TB, email |
| Business Standard | $14 / user/mo | Annual commitment; adds desktop Office apps and webinars |
| Business Premium | $22 / user/mo | Annual commitment; adds Intune, Defender and Entra ID P1 |
Source: www.microsoft.com · checked on Oct 20, 2026
How Microsoft 365 compares in Personal productivity
- Rank by votes
- #1 / 21
- Starting price
- $2
- Free alternatives
- 1
0 votes from members
80% below the category median ($10/mo)
Free or open-source tools in Personal productivity
Microsoft 365 ranks #1 of 21 personal productivity tools by community votes and is priced below most tools in the category.
Common use cases
- 1Running company email, calendars and file sharing on one tenant
- 2Financial modeling and reporting in Excel with Copilot assistance
- 3Managing and securing employee laptops with Business Premium
- 4Hosting internal meetings and webinars in Teams
- 5Sharing apps and 2 TB of storage across a household
- 6Building an intranet and document repository on SharePoint
Best for
Businesses and households that depend on Word, Excel and Outlook and want email, storage, security and AI under one Microsoft account.
Not ideal for
Browser-first teams that prefer lightweight docs and chat (Google Workspace, Notion or Slack fit better).
Integrations
- Microsoft Teams
- OneDrive
- SharePoint
- Outlook
- Power Automate
- Zoom
- Salesforce
- Adobe Acrobat
Our take
Microsoft 365 remains the default productivity suite for most companies, and Business Premium is one of the best-value security bundles for small firms. Individuals who rarely use desktop apps can stay on the free web apps or Basic; everyone else should pick Business Standard or Personal.
FAQ
- What is Microsoft 365?
- Microsoft 365 is a Personal productivity tool: Word, Excel, Outlook, Teams and OneDrive in one subscription.
- How much does Microsoft 365 cost?
- Microsoft 365 uses a Freemium model; paid plans start at $2 per month.
- Does Microsoft 365 have a free trial?
- Yes, Microsoft 365 offers a 30-day free trial.
- What does Microsoft 365 integrate with?
- Microsoft 365 integrates with Microsoft Teams, OneDrive, SharePoint, Outlook, Power Automate, Zoom and more.
- Which platforms does Microsoft 365 support?
- Microsoft 365 is available on web, windows, macos, ios, android.
- Who is Microsoft 365 for?
- Businesses and households that depend on Word, Excel and Outlook and want email, storage, security and AI under one Microsoft account.
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