Microsoft 365 or Office 2021 — subscription versus one-off purchase
Shari
This is a choice between two different models, not between two versions of the same program. The difference is not which Word is better, but what you pay and what you own at the end.
What Microsoft 365 is
A subscription. You pay monthly or annually and, for as long as you keep paying, you have the latest version of the applications, cloud storage in OneDrive and installation on several devices. If you stop paying, the applications switch to read-only mode — the files remain yours, but you cannot edit them.
What Office 2021 is
A perpetual licence. You pay once and the version stays yours with no time limit. You receive security patches, but not new features, and you are not upgraded automatically to the next version. No cloud storage is included.
Side by side
| Microsoft 365 | Office 2021 | |
|---|---|---|
| Payment model | Recurring | One-off |
| New features | Continuously | No |
| Security patches | Yes | Yes, until the end of support |
| Cloud storage | Included | No |
| Number of devices | Several | One |
| Works without internet | Yes, with periodic checks | Yes |
| Resale | No | Yes, subject to conditions |
The three-year calculation
Do one simple exercise: multiply the annual price of the subscription by three and compare it with the one-off price of the perpetual licence. For a single computer and standard document work, the perpetual licence usually pays for itself very quickly. The subscription becomes the better deal when you use the cloud storage, work on several devices or need team features.
Who should choose what
Office 2021 is better if you write documents and spreadsheets on one computer, do not need cloud storage and do not want a monthly cost.
Microsoft 365 is better if you work from several devices, share files within a team or want the newest features at all times.
A note for businesses: subscriptions cannot be resold and are not recorded as an asset. A perpetual licence is an asset that stays with the company. You can read more about the types of licence here.
If you have decided on a perpetual licence, see the Office licences, and for Mac — the macOS versions.
