Office 365 vs. Office 365: Consumers and Businesses, Oh My

If there's one confusing thing about Office 365 Home Premium, it's that it's sort not really an Office 365 service at all

One of the most confusing aspects of Office 365 Home Premium is that it’s a cloud service aimed at consumers, not businesses, and that it has absolutely zero relation, save in name, to any other Office 365 services. Here’s what you need to know about Office 365 Home Premium compared to other Office 365 versions.

Ah, names.

When Microsoft announced that its family of PC and device products would be named Surface, a brand it had already used for a near-pointless family of table (yes, table, not tablet) computing products, we sort of shook our heads for a moment and then realized it made sense.

When Microsoft announced that its Windows on ARM product would be named Windows RT and that the RT bit meant nothing and wasn’t in fact related to the term Windows Runtime, or WinRT, we also sort of shook our heads. And then we kept shaking them. This name doesn’t make any sense at all.

Naming is hard. Establishing a successful brand is also hard, which explains why Zune is gone despite its technical and usability excellence. (Moment of silence.) It also explains why Microsoft paid through the nose for Skype—despite the fact that it literally already had compelling alternatives to every single service that Skype offers—and then proceeded to let the company continue to act as if it were independent from the mother ship after the purchase: Skype is a very strong consumer brand.

And now we have Office 365.

Office 365 is a pretty good brand. It combines Office, which is well known and well understood, with 365, a number that obviously means “the number of days in a year.” Presumably that made more sense than Office 24/7 or whatever. Fine.

After an extensive beta test, the first version of Office 365 launched in mid-2011. As originally envisioned, Office 365 offered businesses of all sizes a compelling set of functionality—hosted Exchange, SharePoint, and Lync for just $6 per user per month (and up, depending on the version). A year ago, I wrote about Office 365 for individuals and small businesses, and my experiences using the service, which I’ve been doing since launch. (I pay for and maintain an Office 365 business account alongside my personal Hotmail/Outlook.com account and work-based Exchange 2010 account.)

The point here is that if you’re familiar with Office 365, you know that this service has “traditionally” (it’s only been round for about 18 months in non-beta form) been offered solely to businesses (albeit businesses of all sizes, including very small businesses). It has traditionally been about delivering hosted versions of Exchange, SharePoint and Lync—or what we might call Exchange Online, SharePoint Online, and Lync Online—to these customers, cloud-based versions of what had until then been traditional, on-premise server products. I’m not the only one who has held up Office 365 as an excellent example of—perhaps the poster child of—Microsoft’s ability to move quickly to address the ever-changing market.

Now all that said, most people aren’t familiar with Office 365. And by people, I mean of course “normal” people, and not those who actually spend their own personal time trying to find out about what’s going on in the world of technology. (Heck, even some people in the technology sphere haven’t heard of, or don’t understand, Office 365. But that’s another story.)

So when Microsoft announces a product called Office 365 Home Premium, which includes access to Office 2013 Professional on up to 5 PCs for just $99.99 a year, many people—normal people, tech-oriented people—get really excited about it. And they rush off happily to buy (or, erm, subscribe to) this product and start installing Office on all their PCs.

There’s just one niggling detail here.

Office 365 Home Premium is not Office 365. Which is to say, Office 365 Home Premium is unique in that it is the only version of Office 365 to not offer its subscribers access to Exchange Online, SharePoint Online, and Lync Online. But that’s because Office 365 Home Premium, as its name implies, targets families. Consumers. Normal people.

(On a related note, the management “portals” for each are also different. Office 365 Home Premium customers see a vastly simplified portal at Office.com, while Office 365 business customers access a complex portal at Office365.com.)

You may know that signing up for Office 365 Home Premium requires you to have a Microsoft account. And you may further know that when you have a Microsoft account (assuming it’s a Hotmail.com, Outlook.com, MSN.com, or other Microsoft-oriented domain), that you also get integrated Hotmail/Outlook.com-based email, calendar, and contacts services. These replace Exchange Online. You also get integrated SkyDrive-based storage and document sharing/collaboration with Office Web Apps; this replaces SharePoint Online. And you get Skype, which replaces Lync Online.

These services—Hotmail/Outlook.com, SkyDrive, and Skype—are all free, and all are immediately yours for the taking and usable with your Microsoft account. So Office 365 Home Premium assumes you will use these services, or whatever services of your choosing. Integrated Exchange/SharePoint/Lync Online functionality is not part of the equation.

Microsoft’s business-oriented versions of Office 365 are excellent, compelling, and extremely capable products. Businesses of all sizes should embrace them. But individuals, especially those interested in the family licensing of Office 365 Home Premium, should not feel slighted by the lack of the Exchange/SharePoint/Lync Online stuff. Likewise, those using or considering business-oriented versions of Office 365 simply need to realize that the product line has now expanded outwards to include the very crucial consumer market.

And to be clear, there is absolutely no reason you can’t use Office 2013 applications with both Office 365 Home Premium/Microsoft account and a business version of Office 365; you can configure your application to access both SkyDrive-based storage and SharePoint Online-based storage. You can choose which is the default. You can even configure multiple SkyDrive accounts and multiple SharePoint accounts in Office. Your choice.

Hope this helps.

Discuss this Article 37

NapMan
on Jan 30, 2013

What doesn't make sense to me is that Office 365 Home Premium includes licenses for Office Professional. It's for HOME use but it includes ACCESS.
Home & Business 2013 does NOT include Access.

cconrad
on Feb 10, 2013

I fully agree that including Access in Office 365 Home Premium doesn't make sense, but you are comparing apples to oranges. Office 365 Home Premium is a subscription (per user, per year) license while Office Home & Business 2013 is a perpetual (per device, one time) license.

lottiejosie
on Feb 23, 2013

I want home premium BECAUSE it includes Access. Even though I have a single office (I'm novelist and historian) I keep a lot of reference information in Access. It will be on tap when I'm traveling. I use a gargantuan query that took me forever to work out. But now I can use a keyword and call up quotes and statistics from books, articles, letters, newspapers, microfilm and whatever.

Robkatz
on Jan 30, 2013

We are a small business that subscribe to office 365 a service that we love. My trial of office 2013 expires in a few days. Can I use Office 365 Home Premium or do I have to wait until the business version is released?

cconrad
on Feb 10, 2013

Hi Robkatz, I am not 100% sure about the licensing for Office 365 Home Premium, but I personally believe you CANNOT use it for business use. However, the Office 365 Small Business Premium preview is available for free here and you can probably use it until the business version is released! Check http://www.microsoft.com/office/preview/en .
Best wishes, Claus

psutherland
on Jan 30, 2013

Yes, it does help, Paul. Thanks for the clarification!

brians (not verified)
on Jan 30, 2013

Does the Office 365 brand mean that Office doesn't work in leap years, or just not on leap day? :-)

MarkH
on Jan 30, 2013

We should all agree to conspire to create a y2k16 scare over this matter and demand that Microsoft release Office 365.25 or we're all going to switch to OpenOffice. :-)

ltoddnelson
on Jan 31, 2013

During leap years the product will be known as Office 366 or on leap day Office Feb29. Yeah ... It's a stretch, I know.

jhester
on Jan 30, 2013

I'm curious. Is there anything, technically, to stop a small business from using Office 365 Home Premium for commercial use?

pthurrott
on Jan 30, 2013

No.

profgeek
on Feb 3, 2013

Actually, yes there is. The Office 365 Home Premium license clearly states "not for commercial use."

SvenJ
on Feb 25, 2013

That's bureaucratically/legally. Technically, as Paul responded, nothing stopping you. Can you use it, yes: May you use it, no.

NapMan
on Jan 31, 2013

I was wondering about this as well.

tjoyce
on Jan 30, 2013

Anyone know when the release of Office365 Enterprise (the 2013 version) is being released. Been running the (we're going to delete your stuff when it's over) "Preview" for some time, but it's not really a "trial", because it's not the currently available version.

We're looking to use this, but without a target release date, it's hard to plan for.

pthurrott
on Jan 30, 2013

Yes, End of February.

satkinsn
on Jan 30, 2013

First, my apologies for stalking you from thread to thread on this. I put a couple of frustrating hours into the question this morning, and got exactly nowhere.

I don't need Exchange or Sharepoint. If I buy Home Premium myself, can I use a copy of it on my work computer?

pthurrott
on Jan 30, 2013

Yes you can.

roncerr
on Jan 31, 2013

He can...but may he do it with Microsoft's blessing?

pthurrott
on Jan 31, 2013

Yes.

Office is designed for work, not play. Microsoft knows that individuals do work with Office. The commercial use license is for businesses that want to deploy consumer versions of Office--like Office RT, which comes with Windows RT--to their employees. It is not for individuals to worry about or buy. You do not need to worry about this.

roncerr
on Feb 3, 2013

So as a business owner, I could buy an individulal "Home and Student" version of Office for each of my employees since Office is used for work. If I were a business owner, I would certainly compare the price of the commercial license with the total of the individual "home" licenses I would need. I just wasn't aware that was sanctioned by MS.

pthurrott
on Feb 4, 2013

You could ... but then you would need to buy a Commercial Use License for each as well, yes.

No one is going to do that.

roncerr
on Feb 4, 2013

So if an employee buys office he can use it for work without a "commercial use license" but if the employer pays for it he (the employer) must also pay a "commercial use license"? How about just reimbursing the employee for buying it? Does that eliminate the need for a "commercial use license"?

47u2caryj
on Jan 30, 2013

I was confused about the lack of a Lync Client but this article clarifies why it is missing. I am going to wait to see if my organization, a university, offers something for us.

ElliotR
on Jan 30, 2013

What is amazingly stupid in all of this is that because I use the same log-in email for both my Office365 account and Microsoft Account, I cannot log into anything related to Live or Outlook.com. I just get the message "You're currently signed in with an Office 365 email account, which can't be used with Outlook.com"

This all started with the switchover to Outlook.com, before that I could access my Live account right alongside my Office365 exchange account, but not for almost 6 months now. Microsoft knows about this issue, but of course isn't saying anything about a possible fix. It almost feels like I am being punished for using too many Microsoft products at once, I don't understand why the two accounts can't work together properly.

BrickEngraver
on Jan 30, 2013

OK, I use Office 365 P1 business plan-$6.00 per month although I do contract with a company for $3.99/month to manage it. The took care of all the migration stuff including my website, and was well worth it. Great service. I have my website hosted on the SharePoint teamsite and run an Access project database application on it to keep up with all my orders and stuff. I am also planning on writing a couple of other Access applications to run under Access services on SharePoint. I have two employees, myself and my daughter. Both have Office 365 and use Lync to stay in touch. It works great as we can whiteboard and text and remote, and the messages get saved into my Client outlook so can go back to the. Never want to use Skype for this as Lync is so much better. She works remotely much of the time trying to keep me straight. I have my main email set up such that I use Outlook on line and syncs down to my Outlook 2010 client also. I definitely want to subscribe to MS Office. Between the two of us, we have 5 devices at present but probably more in future. My question is if I wait for the new Office 365 upgrade and subscribe to Office for my main account, do I have to buy it for each user (in my case just 2 at present) or can I just buy it when released just for main user-i.e. me and put it on my daughter's business computer, and then buy Office Home Premium also. Can I mix and match? Is there anything that I will get from subscribing to Office through my 365 P1 account that I would not get by getting the Home premium?

JimmyFal
on Jan 30, 2013

I have only one dilemma in this entire scenario. I need access to more than 1500 contacts for my email. Isn't it true that Outlook.com has a 1500 limit? So if the O365 Home subscription meets all of my needs, and I have an Outlook.com email address that is attached to all my services such as WinPho8, Xbox, O365 Home, and my Win 8 desktops and tablet, what am I to do if I need more than 1500 contacts? Do I seriously need to use another email service for this scenario? I have several customers that are about to face this dilemma as well. What do we do?

studio4llc
on Feb 13, 2013

"Isn't it true that Outlook.com has a 1500 limit?"

Although, techically, outlook.com accounts include hotmail.com, live.com and msn.com accounts, I don't see how outlook.com can limit the contact list to 1,500. My pimary outlook account, xxxx@msn.com, has over 1,600 contacts. Primarily because outlook.com allows linking my LinkedIn and Facebook contacts. I have Facebook friend with 5,000 friends.

ron
on Jan 31, 2013

According to the terms of the license you cannot use it for business purposes.

In practice I have not heard of any technological blocks to that happening. But I'd guess they have spiders crawling data looking for signs of "business type usage". Think of bright shinny geegaws to attract magpies. Or the explosion of chrome on cars in the 50's and 60's.

NapMan: giving Office Pro does make sense. It they are stuffing product with features the average home user won't use, but these features look good on a checklist.

And there is no guarantee that these features and "extra" programs will always be included. Years ago I was with a company that was taking part in the "Home Use Program" (it had a different name). The company really pushed it out to the employees. Then the next version of Office came out and the terms changed. Home users could no longer get the new version, and users of the old version were supposed to stop using it or buy a regular priced copy to use at home.

Or just like they changed the definition of the "Retail license". Before 2013 was released the "retail license" allowed you to install on 2 or 3 computers at the same time and to transfer installations to new devices. And if you bought it in a store you could get the installation DVD. Starting with 2013 the "Retail license" has be "improved" to allow install on only one computer and no transfers. So if your computer dies 5 minutes after you use the new 2013 product key, tough noogies, you have to buy a new one!

satkinsan: yes you could put one of your 5 allowed installations on your work machine or you could use "Office on Demand" to load a temporary copy of Office on it. But, the license says you can't use it for "business purposes".

And of course, your IT department would probably have something to say about you installing your own software on their computers.

NapMan
on Jan 31, 2013

But my business is small enough that we cannot justify buying 4 copies of Office Pro or 4 subscriptions to Office 365 for business.
If we could get away with Office Home & Business that might be doable but it does not include Access.

cconrad
on Feb 10, 2013

No offense but I feel these new licensing terms are quite attractive compared to previous Microsoft Office offers. If you don't agree, consider another vendor:
www.google.com/a
www.openoffice.org

John Thurlow
on Jan 31, 2013

I know this means I am incredibly lazy, but I did try signing into office.com using my Office 365 for small business credentials and it worked. So going forward I will do so, its more attractive and it spares me 3 keystrokes. :)

tewill
on Jan 31, 2013

To try and shed even more light on this topic, if you are a current subscriber of the "old" Office 365 (for business), you can add a subscription for "Office Professional Plus," which, for $144 per year or $15 per month, gives you access to all the Office desktop applications that the new consumer Office 365 Home Premium does, plus InfoPath, SharePoint Workspace, and Lync. That said, the "new" Office 365 for businesses has not been released yet, so 1) it is currently unclear if there will be other ways to get, or different prices for, a subscription to the desktop apps and 2) if you want the Office 2013 desktop apps right now, you need to go with Office 365 Home Premium.

On another note, when I trialed Plan P1 of the old Office 365, I was surprised to find that the connection to SharePoint Online was not a secure connection, whereas the connection to the "consumer equivalent," SkyDrive, was secure. So, if you are considering SharePoint Online primarily for cloud-based file storage and web-based editing, you might want to see if your needs might be met using SkyDrive instead.

stumpy1570
on Feb 1, 2013

Is this why... as a new Office 365 Home Premium person... putting office on my wifes laptop, outlook crashes right after it starts??? Because it wont work unless we have the small business 365??

sharpsone
on Feb 1, 2013

I love what MS is doing with Office Home Premium. $99.00 a year for up to 5 PCs is an excellent value for consumers and families.

BilLR
on Feb 3, 2013

One significant disadvantage is that, without Exchange 2013, you can;t use any Outlook 2013 Mail Apps or any Outlook 2013 Apps. This includes the Bing Map App and even the LinkedIn App. LInkedIn and Maps were available to previous versions of Outlook without requiring Exchange,
The lack of availability of Mail Apps makes Outlook 2013 without Exchange 2013 a second rate application.

Robkatz
on Feb 8, 2013

Microsoft extended my Office 2013 trial period to March 9th. I'm not sure if they did this to all Office 365 subscribers but for our small business it was quite a relief.

Please or Register to post comments.

IT/Dev Connections

Las Vegas
September 30th - October 4th

Paul ThurottYou'll have the opportunity to experience:
• 120 Technical
Sessions
• Networking with Peers
• Expert Speakers


Come See Paul Thurrott & Mary Jo Foley in Person!

Register Now

Office 365 InfoCenter

Get the latest insight and info from Paul

Read Now!

What I Use