Is it true that Microsoft365 is expensive? Benefits of buying a subscription

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Subscriptions are becoming mainstream as a form of providing computer software.

Microsoft is also promoting subscriptions for various apps and tools, and Office apps are mainly licensed for “Microsoft 365”.

Some of you who have purchased perpetual licenses may have the impression that subscriptions are expensive.

In this article, we used a price simulation to compare whether Microsoft 365 is really expensive.

If you are hesitant to migrate to Microsoft 365 because it seems “somewhat expensive”, please refer to it.

How expensive is Microsoft 365

Microsoft 365 is a subscription product where you pay for the duration of your contract.

Traditional Office perpetual licenses were purchased once and used at no additional cost.

Compared to that, Microsoft 365, which charges monthly and annually, may seem expensive.

What is the price difference between Office perpetual licenses and Microsoft 365?

Compare prices with Office 2021

The table below compares the prices for continued use of Microsoft 365 and Office perpetual licenses.

[In the case of personal license]

Microsoft 365 Personal Office Personal 2021
1 year 12,984 yen 32,784 yen
3 years use 38,952 yen 32,784 yen
5 years use 64,920 yen 32,784 yen

* Microsoft official site fee information as of May 2023

[For corporate licenses]

Microsoft 365 Business Standard Office Professional 2021
1 year 18,720 yen 65,784 yen
3 years use 56,160 yen 65,784 yen
5 years use 93,600 yen 65,784 yen

* Microsoft official site fee information as of May 2023

In both cases, Office 2021 is more expensive for 1-2 years of use, but if you use it for 5 years, Microsoft 365 will be considerably more expensive than a perpetual license.

However, the Office perpetual license must be replaced when support expires.

The end date of mainstream support is set about 5 years after release.

Even if you purchase Office at the same time as its release, you will have to replace it every five years. Depending on the time of purchase, the period until the end of support may be shorter than 5 years.

Whether Office 2021 or Microsoft 365 will be higher depends on the number of years of use. Considering the replacement cost and cycle, it seems that Microsoft 365 is not necessarily expensive.

Compare by purpose! Which one is taller?

In the previous chapter, we compared the standard plans, but let’s consider the actual usage.

Case1.When using only Office apps

This is an example when you only need to use Office apps (Word, Excel, PowerPoint, Outlook).

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Microsoft 365 Apps for Business is an affordable plan for Office desktop apps.

It is cheaper than other Microsoft 365 plans because it omits features other than Office apps.

If you use it for about 3 years, there is no big difference in the price of Microsoft 365 and Office perpetual license, but Office 2021 can be installed on up to 2 computers, while Microsoft 365 can be installed on up to 5 devices.

Microsoft 365, which can be used on multiple devices at the same time, is convenient if you use different computers for work and telework, or if you use a smartphone or tablet at the same time.

Microsoft 365
Apps for Business
Office Home & Business 2021
Office apps
Number of cars used up to 5 up to 2
OneDrive cloud storage 1TB
1 year 12,360 yen 38,284 yen
3 years use 37,080 yen 38,284 yen

Case2.When using Teams

A web conferencing and chat tool indispensable for business.

Microsoft Teams is included in many Microsoft 365 plans.

Teams also has a free version, but group meetings are limited to 60 minutes.

If you want to use Teams with a perpetual license of Office, you can add the Teams single plan “Microsoft Teams Essentials”, but Teams alone costs 5,160 yen per year (430 yen per month), so it is undeniably expensive. yeah.

On top of that, Teams single plan only comes with 10GB of OneDrive storage.

File sharing and recordings on Teams are saved on OneDrive, so if you get 1TB of storage with Microsoft 365, you will be able to use it without worrying about the capacity.

Microsoft 365
Business Standard
Office Home & Business 2021
Office apps
Teams Microsoft Teams Essentials ¥5,160 per year
OneDrive cloud storage 1TB (Microsoft Teams Essentials 10GB)
1 year 18,720 yen 43,444 yen (Office 38,284 yen + Teams 5,160 yen)
3 years use 56,160 yen 53,764 yen (Office 38,284 yen + Teams 15,480 yen)

Case3.When you need cloud storage for collaborative work

Cloud storage is convenient for collaborative work in telework and file access from multiple devices.

Microsoft 365 plans include large cloud storage starting at 1TB per user.

If you contract with OneDrive alone, the cheapest Plan1 costs 6,480 yen per year (540 yen per month). Plan2 with enhanced security costs 13,080 yen per year (1,090 yen per month).

When using OneDrive for Business with Microsoft 365, security equivalent to Plan 2 is included, so you are fully prepared for information leaks and data loss.

Microsoft 365
Business Standard
Office Home & Business 2021
Office apps
OneDrive cloud storage 1TB (OneDrive for Business Plan 1 1TB)
1 year 18,720 yen 44,764 yen (Office 38,284 yen + OneDrive 6,480 yen)
3 years use 56,160 yen ¥57,724 (Office ¥38,284 + OneDrive ¥19,440)

What are the benefits of a Microsoft 365 subscription?

Moving from a perpetual Office license to a Microsoft 365 subscription has benefits beyond price.

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Large number of units

The number of Microsoft 365 users is shown in the table below.

Installation limit Simultaneous usage limit
personal license Unlimited 5 pieces
Corporate License 5 computers, 5 tablets, 5 smartphones 5 pieces

In Office2021, it was up to two computers, but in Microsoft 365, the types of devices that can be used and the number that can be installed are increasing.

When using multiple devices at the same time, you can log in to up to five devices at the same time, so there is no need to reinstall the software.

You can use the latest version of the app

Office perpetual licenses will be updated until the end of support.

The app will work even after the support deadline has passed, but it is not recommended to use it because it poses a security risk.

Since it is not possible to update to a different version, such as Office 2019 to 2021, perpetual licenses require replacement costs and applications every few years.

Microsoft 365 has no end of life support. You can always get the latest version of the app while using it, so you don’t have to worry about the timing of replacement.

Easy license management

For corporate licenses, licenses are collectively managed on the Microsoft 365 admin center.

Allocating licenses is only possible via the web.

If you disable it, you will not be able to use it, so there is no need to collect the device and uninstall it even if the user leaves the company.

How to get more out of Microsoft 365

Microsoft 365 can also save you money by taking advantage of subscription benefits.

Once purchased, a perpetual license cannot be changed or returned, but with a subscription contract, you can change the plan or cancel at the time of renewal, so you can operate without waste.

Choose a plan that suits your usage

Microsoft 365 has more plan types than Office perpetual licenses, and you may get lost in choosing a plan when migrating from Office.

Even if you choose a multi-functional plan from the beginning, it will be useless if you do not use it, so one way to start is with the bare minimum plan.

When migrating from a perpetual license of Office, it is a good idea to start with a plan that allows you to use Office and Teams. OneDrive is included with all plans.

The recommended plan for migrating from each Office product is as follows.

perpetual license individual Corporation (less than 300 people) Corporation (over 300 people)
Office Personal 2021 Microsoft 365 Personal
Office Home & Business 2021 Microsoft 365 Personal Microsoft 365 Business Standard Office 365 E3
Office Professional 2021 Microsoft 365 Personal Microsoft 365 Business Standard Office 365 E3

The personal license “Microsoft 365 Personal” is available for commercial use, so it can be used for both private and business purposes.

See also  [Microsoft 365] Can desktop apps be used with the Business Basic plan?

For corporations, there are “Business” licenses for up to 300 users and “Enterprise” licenses for unlimited users, so choose according to the scale of use.

contract for an appropriate period

Microsoft 365 can be purchased monthly or annually.

If you make an annual contract, you can use it for 10 months of monthly charges, so if you expect to use it on an annual basis in advance, it is advantageous to make an annual contract.

However, even if you have a yearly contract, if there is a period of time when you do not use it, it will be lost, so if the number of users increases or decreases, it is better to make adjustments to a monthly contract.

Article Summary

  • Microsoft 365 and Office perpetual license costs will be similar in the third year
  • Microsoft 365 will be more expensive if you use it for more than 3 years, but since Office perpetual licenses need to be replaced, a large cost will be incurred every few years
  • Microsoft 365 can be used for up to 5 devices, and the number of users and compatible devices is more than the Office perpetual license
  • It is cheaper to use with Microsoft 365 than to contract Teams or OneDrive with a single plan

Currently, Microsoft 365 has more plan options than Office perpetual licenses, and it is possible to make flexible choices according to usage, number of users, usage period, etc.

NEC Networks & System Integration Corporation, a sales agent of Microsoft 365, proposes advantageous plans according to customer requests.

If you are considering migrating from Office to Microsoft 365, please contact us.