Office 2013 or Office 365 – Which one should I get?

So this year saw the launch of Office 2013 and at the same time, Microsoft went all out with their SaaS (Software as a Service) offering – Office 365.

Office 2013Now on the face of it, both appear to be the same thing – one is a boxed copy of Office that you buy outright (roughly £180) and the other is a copy you pay £10 per month per user for.

O365 LogoSo you think…hey – this monthly thing sounds good. But wait, after 18 months it’ll cost me more than if I’d bought the product outright. So why would I want to subscribe?

They are not the same.

For some unknown reason Microsoft saw fit to change the licensing model of Office with the 2013 editions. Previously there was the ability to install (using the same license) a copy of the software on a laptop as long as it was in use by the same individual. Now the license is for one machine and one user. Microsoft originally even decided that once installed on a computer it was tied to that machine too, but backtracked after enough people complained that they’d need to buy another copy if they ever changed their PC.

The second massive change is the method of licensing the software. Instead of supplying a DVD and a key (for install and subsequent activation), with the boxed software you have to go through this convoluted process of setting up a Microsoft ID, entering the key from the box to register, then go to the download page and get a different key to then use to install the software. This is ok if there is just one of you, but if you have (say) 20 copies and want to be able to manage them, then you’re stuck. If you thought you could set up one Microsoft account to manage all of these licenses you’d be mistaken. There is no way to identify individual copies of the software and you’ll find yourself screaming when you can’t tell which key was used on which computer. Microsoft know this and admit it’s a problem but are not forthcoming with a solution. Arrrggghhhhh!

Not OK

In reality Office 365 is a bit more than just a subscription to Office 2013. We’ll explore that when we look at cloud computing but in this instance we’ll just look at the Office Suite itself.

Office 365 is licensed per user; currently each subscriber can install/use the software on 5 devices. So you can install it on your work desktop, work laptop, work tablet and home PC, as well as access it on your mobile device via Office Web Apps. Now if you are, like a great many, a user of several machines, then this makes financial sense, as ordinarily you’d now need to buy a copy of the software for each machine that you use. That could get quite expensive.

The other great thing about Office 365 is that as long as you continue to subscribe you are able to use the most current versions of the software. Availability of the latest version via 365 is not as rapid as via the retail or licensing channels but then you don’t have to pay extra for the privilege. And in any case, you possibly don’t want to be installing the latest version until a few months have passed or when you’re in a position to upgrade all your machines at the same time.

Lastly it is an easy way to standardize the software in your business and fix your software spend on a monthly basis. It also removes software from the PC upgrade cycle cost.

There is one big BUT of course. To use the software you have to continue to pay. If you decide at some point you don’t want to continue with it the software on your computers will stop working and you’ll need to either go out and buy the software, re-subscribe or license via other means.

It won’t surprise me that in the next edition or two, this will be the only way to use the Office suite of applications – the world is moving towards more subscription based models – the mobile phone companies have been doing this for years quite successfully and is now a proven model and indeed tends to tie in customers for the longer term.