Microsoft 365 is one of the most widely used business productivity platforms, but it remains a confusing subject for many because of changes to the product over the years. Our Microsoft 365 specialists regularly hear the same questions from growing businesses trying to decide if Microsoft 365 is the right fit.
This guide answers those questions, helping organizations plan, migrate, and manage Microsoft 365 environments.
What is Microsoft 365? (and what it replaced)
Microsoft 365 is a cloud-based productivity and collaboration platform that includes familiar Office apps like Word, Excel, Outlook, and PowerPoint, along with collaboration tools like Teams, OneDrive, and SharePoint, plus built-in security and compliance features.
Microsoft 365 replaced Office 365 as Microsoft’s primary business productivity offering. While Office 365 focused mainly on apps, Microsoft 365 bundles apps, cloud services, device management, and security into one subscription. It is designed for individuals, small businesses, and enterprises.
For a more detailed breakdown of Microsoft 365 vs Office 365, check out our blog that compares available plans, features, and pricing across both product lines.
What is Microsoft 365 used for?
Microsoft 365 is used to help teams communicate, collaborate, and work securely, whether they are in the office, remote, or hybrid.
Common use cases include:
- Business email and calendars with Outlook
- Document creation and collaboration with Word, Excel, and PowerPoint
- Team chat and meetings with Microsoft Teams
- File storage and sharing with OneDrive and SharePoint
- Secure access to company data across devices
What apps are included in Microsoft 365?
Microsoft 365 plans vary, but most business subscriptions include the core apps below.
- Word: Document creation and editing
- Excel: Spreadsheets, reporting, and analysis
- PowerPoint: Presentations and slide decks
- Outlook: Email, calendars, and contacts
- OneDrive: Personal cloud storage for each user
- SharePoint: Team sites, intranets, and shared document libraries
Does Microsoft 365 include Teams?
Yes. Most business and enterprise plans include Microsoft Teams. However, Microsoft 365 Business plans without Teams are available in specific regions.
Is OneDrive included?
Yes. Business plans typically include 1TB of OneDrive storage per user.
Microsoft 365 plans & licensing
Microsoft 365 licensing can feel overwhelming, but most small and mid-sized businesses only need to understand a few core options.
Business Plans:
- Business Basic: Web and mobile apps only, email, Teams, OneDrive, SharePoint
- Business Standard: Web, mobile, and desktop apps
- Business Premium: Web, mobile, and desktop apps plus advanced security and device management, including enhanced cyberthreat protection against viruses and phishing attacks.
Enterprise Plans
Designed for organizations with advanced compliance, security, or reporting needs. Enterprise plans also include Power Automate for Microsoft 365.
If your team uses desktop Office apps and handles sensitive data, Business Standard or Business Premium is usually the right starting point.
Expert note:
Licensing mismatches and overprivileged user accounts are some of the most common cost and security issues we uncover during Microsoft 365 assessments.
System Requirements for Microsoft 365
Microsoft 365 works on most modern devices. Here is an overview of the system requirements for Microsoft 365 for business.
Supported platforms include:
- Windows 11, Windows Server 2025, or Windows Server 2022
- One of the three most recent versions of macOS.
- The 2 most recent versions of iOS
- The last 4 major versions of Android
- Modern web browsers (for web apps)
Microsoft 365 apps are no longer supported on Windows 7, Windows 8, Windows 8.1 or Windows 10 now that these operating systems have reached their end of support dates. While the apps may continue to function on Windows 10, upgrading to Windows 11 is recommended to avoid performance issues.
What is Copilot for Microsoft 365?
Microsoft 365 works on most Microsoft Copilot for Microsoft 365 is an AI-powered assistant built directly into familiar Microsoft 365 apps like Word, Excel, Outlook, Teams, and PowerPoint. It uses large language models together with your organization’s Microsoft 365 data to help users work more efficiently while staying within existing security and compliance boundaries.
Copilot can help teams:
- Draft, rewrite, and summarize documents in Word
- Analyze data, create formulas, and generate insights in Excel
- Summarize meetings, chats, and action items in Microsoft Teams
- Build presentations from outlines or documents in PowerPoint
- Draft and respond to emails in Outlook
Unlike standalone AI tools, Copilot works inside Microsoft 365 and respects user permissions, meaning it can only access data the user is already allowed to see.
While Copilot is licensed separately from most Microsoft 365 plans, simply turning it on does not guarantee productivity gains. Prompting plays a major role in Copilot’s effectiveness. Clear instructions that include context, goals, and constraints produce far better results than vague requests.
Are OneDrive and SharePoint the same?
No, OneDrive and SharePoint are not the same thing.
OneDrive is designed for individual file storage. On the contrary, SharePoint is designed for team and enterprise-level document management. It supports shared files, real-time collaboration, and company intranets.
Is Microsoft 365 Secure?
Security is one of the biggest reasons organizations choose Microsoft 365.
Features include:
- Multi-factor authentication (MFA)
- Microsoft Entra ID for identity management and protection
- Microsoft Defender and Intune for endpoint protection
- Microsoft Purview for data security, governance, and compliance
- Extended detection and response (XDR)
Microsoft 365 secure by design, but configuration matters. Microsoft uses a shared responsibility model, meaning Microsoft secures the platform, while customers are responsible for how it’s configured and used. This is where many businesses unintentionally leave gaps.
Microsoft 365 vs Google Workspace
Both platforms are popular, but they serve different strengths.
Microsoft 365 strengths
- Advanced Excel and desktop apps
- Strong security and compliance options
- Deep integration with Windows environments
Google Workspace strengths
- Simple collaboration
- Browser-first experience
- Lower learning curve for some teams
Which is better for business?
Organizations with complex workflows, compliance needs, or heavy Excel usage often prefer Microsoft 365.
Evaluating Google Workspace vs. Microsoft 365?
A Microsoft 365 Migration Assessment helps identify licensing needs, security gaps, and migration risks before you make changes. GraVoc’s Microsoft 365 Migration Assessment—available on Microsoft AppSource—is designed for organizations with 25–250 users and includes an environment review, licensing recommendations, and a clear migration roadmap. Request a Microsoft 365 Migration Assessment here.
Who Should Use Microsoft 365?
Microsoft 365 is a strong fit for:
- Small and mid-sized businesses
- Remote or hybrid teams
- Regulated industries
- Organizations planning to scale
- Organizations looking to improve productivity with built-in AI tools like Microsoft Copilot
When Microsoft 365 may not be the best fit:
- Very small teams with minimal collaboration needs
- Businesses fully committed to Google-native tools
Key takeaways
Microsoft 365 is a complete productivity, collaboration, and security platform. When planned and configured correctly, it supports how modern businesses actually work.
This guide reflects hands-on experience supporting real Microsoft 365 environments. If you’re evaluating Microsoft 365 or planning a migration, understanding the structure, licensing, and security model upfront can save time, cost, and reduce hassle later.
