Office 365 vs Office 2016: Difference and Comparison

Initially launched in 1990, Microsoft’s Office suite has undergone many changes and developments. As a result, it can be complicated to decide which type of Office subscription to go for.

Key Takeaways

  1. Office 365 is a subscription-based service that provides access to Microsoft Office applications, including Word, Excel, PowerPoint, and more, as well as additional cloud storage and features.
  2. Office 2016 is a one-time purchase version of Microsoft Office, including essential applications like Word, Excel, and PowerPoint, but without the ongoing updates and cloud-based features of Office 365.
  3. Both Office 365 and Office 2016 provides access to Microsoft Office applications. Still, Office 365 offers regular updates and additional features through a subscription model, while Office 2016 is a standalone purchase with no future updates.

Office 365 vs Office 2016

Office 365 is a cloud-based subscription service offered by Microsoft that provides access to a suite of productivity and collaboration tools. Office 2016 is a productivity suite of software applications developed by Microsoft Corporation, designed for use on Windows and Macintosh operating systems.

Office 365 vs Office 2016

Office 2016 is a software product from Microsoft that works as a one-time purchase, i.e. one can buy the software once and install it on one computer respectively.

Office 365, on the other hand, gives cloud services by giving access to several tools, apps, and services depending on the subscription plan one has picked up.


IT Quiz

Test your knowledge about topics related to technology

1 / 10

Which of the following AI domain attempts to extract information from spoken and written words using algorithms?

2 / 10

Which is an Input device

3 / 10

Phones that offer advanced features not typically found in cellular phones, and are called

4 / 10

Mac Operating System is developed by which company

5 / 10

'.BAK' extension usually refers to what kind of file?

6 / 10

Which American Computer Company is also known by the nick name "Big Blue"

7 / 10

With reference to a computer network, the exact meaning of the term VPN is

8 / 10

Which of the following is defined as an attempt to steal, spy, damage or destroy computer systems, networks, or their associated information?

9 / 10

Geo-stationary satellite revolves at –

10 / 10

LED stands for:

Your score is


In addition, Office 365 is used online, while Office 2016 is available offline, even without an internet connection.


Comparison Table

Parameter of ComparisonOffice 365Office 2016
ApplicationsWord, PowerPoint, Excel, Outlook, Onedrive, OneNote, Publisher and Access (both on PC only), skypeWord, PowerPoint, Excel, Outlook, OneNote, Publisher and Access (both on PC only)
PricingPay per month/ year. I prefer yearly as they are cheaper than monthly cost per user
UpdatesComes up with new updates and features/ versions that can be installedIt comes up with security updates, but no features/versions are available
StorageProvides 1TB of cloud storage through OneDriveNo storage
Browser compatibilityCan be accessed from a browser (chrome, firefox etc.) that can run on multiple devices such as PCs, Macs, Android and Apple devicesIt can be accessed through a desktop version. Does not support browsers.


What is Office 365?

A top-rated Microsoft product, Office 365 is a software that provides cloud-based services with the help of a subscription plan.

It can be paid monthly or yearly, depending on your needs, though yearly subscriptions are cheaper than monthly subscriptions in the long run.

It can also be shared with other users as well. It is essential to remember that once you stop paying, you will lose access to applications and files stored on OneDrive.

Office 365 gives access to various cloud services and Microsoft office applications such as Word, PowerPoint, Excel, Outlook, Onedrive, OneNote, Publisher and Access (both on PC only), and skype.

To access these services, one needs to have a Microsoft Account. Also, it gives 1TB of cloud storage through OneDrive. This, in turn, makes sharing and retrieving files, backing up important documents quickly and easily, and so much more.

Because a subscription model is used by Office 365(monthly or yearly), one can easily install the latest updates and features and never becomes outdated.

Another important feature of Office 365 is that its applications can be accessed over a browser (Chrome, Firefox etc.) which can be accessed on various devices, such as PCs, Android and Apple devices.

office 365 1

What is Office 2016?

Another excellent product of Microsoft is Office 2016 is a stand-alone version that is paid once, i.e. one-time cost per user. Only one user can access this product, either a PC or Mac computer.

The expense is paid once rather than every month, so it is expensive.

Office 2016 gives Word, Excel, PowerPoint, Publisher, and Access applications. These apps can be installed separately if the entire office suite is not required.

Another great feature is that you can get applications depending on your preference. For instance,  Office 2016 Home and Student is a lighter version for use at home, whereas Office 2016 Professional works best for office and workplace areas.  

Moreover, one can purchase licenses for additional users instead of purchasing software per seat.

Another essential feature is integrating Office 2016 and Office 365 by creating a Microsoft account. One can use it without an Office 365 account if not needed.

It is important to note that Office 365 provides its users with security updates. No new features or updates can be accessed. It also does not give cloud storage space like OneDrive in office 365.

Moreover, it is crucial to keep in mind that users of office 2016 can contact their support representation during the installation process only.

In addition, Office 2016 can only be accessed offline, i.e. through a desktop version rather than through browser support like office 365.

office 2016

Main Differences Between Office 365 and Office 2016

  1. In terms of applications provided, each offer Word, PowerPoint, Excel, Outlook, OneNote, Publisher and Access (both on PC only), but office 365 provides Onedrive and Skype too.
  2. Office 365 rating is either monthly or yearly, whereas office 2016 is a one-time value payment.
  3. Office 365 gives updates and new versions, but office 2016 has only security updates and no features.
  4. In terms of storage, office 365 provides 1TB of cloud storage through OneDrive, whereas office 2016 gives no storage options.
  5. Office 365 can be accessed from a browser that can run on multiple devices, whereas office 2016 can be accessed through a desktop version.

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