Microsoft 365 (Office 365)

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What is Microsoft 365 (Office 365)?

Office 365, rebranded as Microsoft 365 in 2020, is a comprehensive, cloud-based suite of productivity tools from Microsoft, designed to cater to a wide range of tasks and collaboration needs.


It’s an evolved form of the traditional Microsoft Office, transitioning from a software package that you would install with a CD to a dynamic, cloud-hosted service. Microsoft 365 marked a significant shift in Microsoft’s approach, focusing on accessibility, collaboration, and versatility.

Techopedia Explains

Unlike the standalone versions of Microsoft Office, Microsoft 365 is built to be accessible anywhere and on any device. This flexibility is a game-changer for users who are increasingly mobile and dispersed.

The transition to Microsoft 365 also introduced a range of new features and functionalities. Real-time co-authoring, for example, allows multiple users to work on the same document simultaneously, regardless of their location.

Automated updates ensure that users always have access to the latest versions and features without the need for manual upgrades.

Also, integration with other Microsoft services and third-party apps has broadened the scope of what can be achieved with Microsoft 365.

Microsoft 365’s target audience ranges from individual consumers and small businesses to large enterprises and educational institutions. It’s designed to be intuitive and user-friendly, appealing to users who may not be tech savvy, while also offering advanced features for more experienced users.

In educational settings, it facilitates a collaborative and interactive learning environment, allowing students and teachers to engage in new and innovative ways.

How Does Microsoft 365 Work?

It operates on a cloud-based model, which fundamentally changed how we use Microsoft’s suite of productivity tools. By being in the cloud, it means that all the apps and files are stored online, on Microsoft’s servers, rather than just on your local device.

Cloud-Based Model

The core of Microsoft 365’s functionality lies in its cloud-based architecture. Instead of being installed and operated from a single computer, Microsoft 365’s apps and services are hosted on Microsoft’s secure servers and accessed via the internet.

This means you can use Word, Excel, PowerPoint, and other tools from any device with an internet connection – be it a computer, tablet, or smartphone.

This online model ensures that you have access to your work and the ability to collaborate with others no matter where you are, breaking down geographical and device-related barriers.


Synchronization is another cornerstone of Microsoft 365’s efficiency. It keeps your work up to date across all your devices.

When you edit a document on your tablet, the changes are instantly saved to the cloud and reflected when you access the document on your laptop or share it with a colleague.

This feature extends to team collaboration as well. If multiple people are working on a document, spreadsheet, or presentation, changes made by any individual are instantly visible to all others, with updates occurring in real time.

This synchronization not only helps in maintaining the consistency of work but also eliminates the confusion of multiple document versions.

Collaboration Tools

Microsoft 365 is equipped with many collaboration tools designed to facilitate teamwork. As mentioned earlier, real-time co-authoring is a big feature, available in apps like Word, Excel, and PowerPoint.

This feature allows multiple users to edit a document simultaneously, with each person’s contributions visible in real time. Each contributor’s cursor and text entry are marked with their unique identifier, making it clear who is doing what.

Beyond document editing, Microsoft Teams offers a comprehensive platform for communication. It integrates chat, video conferencing, file sharing, and collaborative document editing in a single interface, streamlining group projects and discussions.


Microsoft 365 connects with other Microsoft services such as OneDrive, allowing for easy file storage and sharing. Integration with SharePoint also facilitates advanced document management and intranet functionalities for team collaboration.

Beyond Microsoft’s ecosystem, Microsoft 365 supports integration with numerous third-party apps, adding layers of functionality tailored to specific business needs. This could range from project management tools to customer relationship management (CRM) systems.

What’s Included in Microsoft Office 365?

What's Included in Office 365?

Microsoft Office 365 is a suite of apps and services designed to cater to a wide range of productivity and collaboration needs.

Let’s break down its main inclusions.

Core Applications

  • Word: Microsoft Word in Microsoft 365 is the quintessential word processing tool, enhanced for cloud-based collaboration. It allows for creating, editing, and sharing documents, with added features for online collaboration, such as commenting and real-time editing.
  • Excel: Excel takes spreadsheet creation to a new level. Apart from handling data, creating graphs, and performing calculations, it offers advanced features like pivot tables, conditional formatting, and the ability to import and analyze large datasets.
  • PowerPoint: PowerPoint in Microsoft 365 is all about creating visually engaging presentations. It offers a wide range of templates, animation effects, and the ability to embed. The collaboration feature also allows multiple users to work on a presentation simultaneously.

Communication Tools

  • Outlook: Outlook is an all-in-one solution for managing emails, calendars, contacts, and tasks, making it easier to stay organized and communicate effectively.
  • Teams: Microsoft Teams is a hub for teamwork. It combines chat, video calls, file storage, and integration with other Microsoft 365 apps, providing a comprehensive platform for team collaboration and communication.
  • Skype for Business: This tool focuses on instant messaging, voice and video calls, and online meetings. It’s especially useful for remote communication and conducting virtual meetings with team members and clients.

Storage and Sharing

  • OneDrive: OneDrive is the cloud storage service of Microsoft 365. It offers a secure place to store files, with the flexibility to access and share them from anywhere. It integrates with other Microsoft 365 apps, enabling easy file sharing and collaboration.
  • SharePoint: SharePoint is a more advanced collaboration tool. It’s used for creating websites, storing and managing documents, and improving team collaboration. It’s particularly useful for larger organizations needing a central platform for document management and intranet services.

Additional Tools

  • Forms: A tool for creating surveys, quizzes, and polls, useful in gathering feedback or conducting research.
  • Planner: This is a task management tool that helps in organizing teams, assigning tasks, and tracking progress.
  • Power Automate: Formerly known as Microsoft Flow, this tool is designed to automate workflows between your apps and services, helping to streamline repetitive tasks and save time.

There are many other apps and features available, depending on your subscription level. Here’s a full breakdown of what’s available.

Bonus Features

Microsoft 365 integrates AI and automation to streamline tasks and enhance user experience.

In Word, the AI-powered Editor offers advanced grammar and style suggestions, refining your writing.

Excel’s AI capabilities automate data analysis, quickly identifying trends and simplifying data interpretation.

Security in Microsoft 365 surpasses that of the standalone Office suite. It includes data loss prevention to protect sensitive information and Advanced Threat Protection to guard against cyber threats like phishing and malware. These features ensure compliance with international data protection standards, important for businesses handling sensitive data.

The update system in Microsoft 365 makes sure users always have the latest features and security enhancements. Unlike traditional software, updates in Microsoft 365 are automatic and frequent, eliminating the need for manual updates or purchasing new versions.

Microsoft 365 Subscription Plans

Microsoft 365 offers a variety of subscription plans tailored to different needs, from individual use to large organizations and education. Each plan comes with a specific set of features and pricing structures.

Plan Type Target Audience Key Features Pricing Model
Personal Individual users Office apps, cloud storage $69.99/year or $6.99/month
Family 1-6 users Office apps, cloud storage $99.99/year or $9.99/month
Business Small to medium businesses Office apps, business services, tiered features Tiered, per user
Enterprise Large organizations Advanced security, compliance, IT management Scalable, per user
Education Schools and universities Access to Microsoft 365 tools, special discounts/free tiers Special/Free

Microsoft 365 Security

Microsoft 365 incorporates several layers of security to protect user data and ensure system integrity.

Data Protection

Microsoft 365 uses advanced encryption methods to secure data, both in transit and at rest. It adheres to global compliance standards, including GDPR, to ensure data is handled safely and legally.

Privacy Policy

Microsoft’s privacy policy for Microsoft 365 is stringent. It highlights their commitment to protecting user data from unauthorized access and ensuring it is used only for providing the service.

Threat Protection

Microsoft 365 includes comprehensive threat protection mechanisms. It guards against various cyber threats, including malware, phishing, and ransomware, using advanced detection and prevention technologies.

User Management

Administrative controls in Microsoft 365 allow for detailed user access management and data governance. Admins can set user-specific permissions and monitor activities to maintain data integrity and compliance.

The Bottom Line

Office 365 stands out as a modern solution for productivity and collaboration, evolving continuously to meet the diverse needs of its users.

It enhances collaboration by allowing real-time interaction across various locations and devices. Its flexibility and easy accessibility cater to different working styles and environments.

With robust security measures, it ensures data protection and user privacy. Constant updates enrich its functionalities, keeping it aligned with emerging trends and demands. This makes Office 365 a valuable tool for a wide range of users and organizations, streamlining their workflows and supporting their growth.


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Marshall Gunnell
IT & Cybersecurity Expert
Marshall Gunnell
IT & Cybersecurity Expert

Marshall, a Mississippi native, is a dedicated expert in IT and cybersecurity with over a decade of experience. Along Techopedia, his bylines can be found on Business Insider, PCWorld, VGKAMI, How-To Geek, and Zapier. His articles have reached a massive readership of over 100 million people. Marshall previously served as the Chief Marketing Officer (CMO) and technical staff writer at StorageReview, providing comprehensive news coverage and detailed product reviews on storage arrays, hard drives, SSDs, and more. He also developed sales strategies based on regional and global market research to identify and create new project initiatives.  Currently, Marshall resides in…