What Is Microsoft 365 and How Does It Work?

 

What Is Microsoft 365 and How Does It Work?

Microsoft 365

Understanding Microsoft 365

Have you ever done a jigsaw puzzle?

If you have, then you already understand a useful way to think about Microsoft 365.

Microsoft 365 is like a jigsaw piece that fits into the larger jigsaw puzzle that is Windows 11.

When you install Windows 11, you have the basic operating system. It provides the core structure you need to run a computer, but it does not include full office productivity tools.

This is where Microsoft 365 fits in.

When you purchase a Microsoft 365 license and sign in, it adds the pieces needed to use applications such as 

Outlook

Word

One drive

Excel

Teams 

These tools integrate with Windows and work together to provide email, document creation, collaboration, and cloud storage.

In other words, Windows provides the foundation of the puzzle, while Microsoft 365 adds the productivity tools that complete the picture.

Types of Microsoft 365 Licenses

If you are buying Microsoft 365 for yourself or asking your IT team to provide a license for a new user, it is helpful to understand the different types of licenses that are available.

Free License - Microsoft 365 Tools

Microsoft offers several free tools and limited licenses that anyone can use without a paid subscription.

you can access Office for the web including 

Word,

Excel,

PowerPoint

OneNote 

Directly in a browser for free. 

You also get 5 GB of OneDrive cloud storage, which allows you to save and share files online. 

Microsoft provides a free version of Teams for personal or small group use, enabling chat, video calls, and collaboration without a business subscription. 

While these free options don’t include the full desktop applications or advanced business features, they are ideal for students, home users, or small businesses just starting with Microsoft 365.

Personal and Family Plans

These licenses are designed for home users rather than businesses.

Microsoft 365 Personal

• 1 user

• Desktop applications:

• Microsoft Word

• Microsoft Excel

• Microsoft PowerPoint

• Microsoft Outlook

• 1 TB of cloud storage with Microsoft OneDrive

Microsoft 365 Family

• Up to 6 users

• Same apps as Personal

• 1 TB OneDrive storage per user

These are the licenses most people buy for home computers.

Microsoft 365 Licenses in the Workplace

The personal licenses are fairly simple. 

However, things start to become more complicated when you begin talking about Microsoft 365 in the workplace.

One of the most common workplace licenses is Microsoft 365 Business Standard. 

This is the same as the personal license, but it is designed for businesses and can be managed by an administrator.

There is also Microsoft 365 Business Basic. This is similar to Business Standard except that it does not include the desktop Office applications. 

Instead, users work with the web versions of the apps. This can be useful if multiple people share the same computer.

In the workplace there are also licenses that include only the applications and no email, licenses that include email but not the desktop apps, and many other licenses that allow administrators to manage security and compliance within the Microsoft environment.

Because there are many different combinations, the best approach is usually to speak to your IT team - If you have one.

 They can help determine the most appropriate license for your needs.

However, it can be very helpful if you already know a few basic things, such as whether you need the desktop applications and whether you need email. 

This helps your IT team narrow down the choices and assign the correct license more quickly.

I will make a separate post explaining the business licenses and their uses.