Word, Excel and PowerPoint can be purchased in two ways: as a Microsoft 365 subscription paid annually, or as a one-time purchase Office 2024 license. Both options provide the same core applications, but differ in the number of devices, additional services and how the applications are updated. In this article, we explain the differences and help you choose the best option for your home or company.
What is Microsoft 365
Microsoft 365 is a subscription that must be renewed every year. It includes the latest versions of Word, Excel, PowerPoint, Outlook and OneNote, continuous updates during the subscription period and 1 TB of OneDrive cloud storage. The apps run on Windows, macOS, Android and iOS devices.
There are two main plans for home users:
- Microsoft 365 Personal – for one person; you can sign in on up to 5 devices at the same time.
- Microsoft 365 Family – for up to 6 people; each gets their own 1 TB of storage and can sign in on up to 5 devices at the same time.
Home plans are for personal, non-commercial use. For businesses there is the Microsoft 365 Business Standard plan with business email on your own domain, Teams meetings and 1 TB of storage per employee.
What is Office 2024
Office 2024 Home & Business is a one-time purchase license for one Windows or Mac computer. You pay once and use Word, Excel, PowerPoint, Outlook and OneNote with no time limit. The license is suitable for commercial use, so companies can use it too.
This version receives security and bug-fix updates, but does not receive the new features that appear in the Microsoft 365 subscription. This package also does not include 1 TB of OneDrive storage.
Key differences
- Payment: Microsoft 365 – annual subscription, Office 2024 – one-time purchase.
- Devices: Microsoft 365 – up to 5 devices at the same time for one person, Office 2024 – one computer.
- Phones and tablets: a Microsoft 365 subscription also covers mobile devices, while an Office 2024 license is for one computer.
- Cloud storage: Microsoft 365 includes 1 TB of OneDrive, Office 2024 does not.
- Updates: Microsoft 365 gets new features, while Office 2024 gets only security and bug-fix updates.
- Business use: Office 2024 Home & Business and Microsoft 365 Business Standard are suitable for commercial use, while Personal and Family are not.
Who Microsoft 365 is for
A subscription is most convenient for those who work on several devices and want their files to sync automatically. It suits:
- For students and pupils who work on both a computer and a tablet
- For families where several people use the apps – one Family subscription replaces several separate ones
- For those who need cloud space for photos, documents and backups
- For companies that need business email with their own domain and collaboration tools, there is the Business Standard plan
Who Office 2024 is for
A one-time license suits those who do not want annual payments and work on one computer:
- For small businesses and self-employed people who need software for invoices, reports and correspondence
- For home users who use Word and Excel on one computer
- For those who do not need cloud storage or already have it elsewhere
Microsoft 365 for business
For companies that need more than office apps, there is Microsoft 365 Business Standard. A license is purchased for each employee separately, so it is easy to add new users as the team grows. The plan includes:
- Desktop and mobile Word, Excel, PowerPoint and Outlook apps
- Microsoft Teams for chats, video meetings and file collaboration
- Business email on your company domain
- 1 TB of OneDrive storage for each employee
- Install the apps on up to 15 devices: 5 computers, 5 tablets and 5 phones
The company administrator assigns licenses to employees in the Microsoft 365 admin center. When an employee leaves, their license can be transferred to a new colleague.
What is more cost-effective in the long run
A one-time Office 2024 license pays off if you use the apps for several years on one computer and the existing features are enough for you. A subscription is better value when several people share it or when you need many devices or cloud storage. For a family, for example, one Family subscription often replaces several separate licenses and cloud storage services.
How to activate a purchased license
- Once the order is paid, we send the license key and VAT invoice by email.
- Sign in to your Microsoft account on the manufacturer’s activation page and enter the key you received.
- Download and install the apps, signed in with the same Microsoft account.
How to decide
- Count how many devices you will work on: if more than one, choose Microsoft 365.
- Decide whether several people will use the programs: Microsoft 365 Family is the most convenient for a family.
- Consider whether you will use the apps for work: for a company, Office 2024 Home & Business or Microsoft 365 Business Standard is the right choice.
- Consider whether you need cloud storage and the latest features – if so, a subscription is more cost-effective.
Microsoft software in our shop:
- Microsoft 365 Personal
- Microsoft 365 Family
- Microsoft 365 Business Standard
- Microsoft Office 2024 Home & Business
Frequently asked questions
What happens when a Microsoft 365 subscription ends?
The apps work only in a limited mode – documents can be viewed but not edited. To keep working, you need to renew the subscription. Files saved on your computer do not disappear.
Can I renew my existing subscription with a new key?
Yes. Activating a new key on the same Microsoft account extends the subscription period.
Can Office 2024 be installed on two computers?
No, the Office 2024 Home & Business license is for one Windows or Mac computer. A second computer requires a separate license.
Does Office 2024 work on a Mac?
Yes. The Office 2024 Home & Business license can be used on one computer running Windows 10, Windows 11 or a recent version of macOS.
Can I use Microsoft 365 Personal for business?
This subscription is for personal use. For companies, choose Microsoft 365 Business Standard or Office 2024 Home & Business, which are suitable for commercial use.
Can Family subscription members see each other's files?
No. Each member uses their own Microsoft account and their own 1 TB of storage, so files don't get mixed up unless they are shared.
Will I receive a VAT invoice?
Yes. Together with the license key, we email a VAT invoice that you can submit to your company's accounting department.
Conclusion
If you work on several devices or want cloud storage or apps for the whole family, choose Microsoft 365. If you need office apps on one computer without annual payments, especially for work, a one-time Office 2024 Home & Business license is a better fit. For a company that also needs business email and collaboration tools, Microsoft 365 Business Standard is the best choice.