When providing multiple employees with a business productivity suite, finding the best value for your money is a key driver in the type of tools you choose.

Since its release in 1989, Microsoft Office has been the dominant office software used to power spreadsheets, documents, email, and presentations. It has evolved along with the times and in 2011, a cloud-based subscription model was introduced in Office 365 (now Microsoft 365).

One of the big decisions that companies in Wabash and Huntington, IN face when it comes to their IT solutions and Office applications is whether to choose a subscription model or a one-time purchase with perpetual license. 

Which one is most cost-efficient over time? Which offers the best overall value for a company?

When providing IT consulting for Wabash businesses, our goal at Skyline Business Technology is to help businesses succeed by making the best technology choices. We do this by helping them thoroughly evaluate and compare their options.

Companies that are “digitally mature” and make the best use of technology are 23% more profitable than their peers.

Should you purchase Office 365 outright or upgrade to the cloud version with additional apps, but an ongoing subscription? We’ll break down all the costs and benefits for you.

Should I Buy Office Software Outright or Subscribe Monthly to Microsoft 365?

When software developers like Microsoft began introducing subscription models several years ago, it changed the way that companies thought about the digital tools they use to run their businesses.

Initially, paying monthly for as long as you use an application didn’t seem like such a great deal over making a one-time purchase for software you own forever. 

But when you look deeper at several factors, a subscription model can make the most sense for many. These factors include the typical software replacement cycle, the low cost for entry, and the fact that cloud tools have pretty much become indispensable for business operations and continuity.

First, we’ll look at a cost comparison between the two and then take a look at the additional benefits and tools provided by Microsoft 365. For the comparison, we’ll use the Microsoft 365 Business Standard plan.

Cost Comparison: Office 2019 vs Microsoft 365

A big benefit of making a one-time purchase for a software is that you own it forever. There are no additional costs past the initial purchase, unless you plan to upgrade to the new version. A drawback is that you don’t get feature updates without buying a whole new version.

A subscription model has a much lower cost per entry, meaning younger companies won’t have to invest as much upfront capital to give their employees the productivity tools they need. The software is also always updated with new features being included with the subscription.

Pricing for each product:

• Microsoft 365 Business Standard: $12.50 per user per month 
• Office Home & Business 2019 one-time purchase: $249.99

When looking at pricing, you also have to look at how many licenses each of those costs includes, i.e. for the price, how many devices can use the software. 

• Microsoft 365 subscription: Each user can use the applications on 5 PCs or Macs, 5 tablets, and 5 mobile devices.
• Microsoft 2019 perpetual license: Each user can use the applications on 1 PC or Mac.

So, if you have users that need to use the software on more than one computer (home and work), you’re looking at double the cost for the perpetual license software.

Value/Benefits Comparison: Office 2019 vs Microsoft 365

The next comparison that businesses have to take into consideration is how much value they’re getting for their money. This is where Office 2019 and Microsoft 365 differ greatly.

Office Home & Business 2019: (all non-cloud versions)

• Word
• Excel
• PowerPoint
• Outlook

Microsoft 365 Business Standard: (both desktop & cloud versions of Office apps)

• Word
• Excel 
• PowerPoint
• Outlook
• Custom domain email hosting
• OneDrive cloud storage (1TB per user)
• Microsoft Teams (online meetings, chat, collaboration app)
• SharePoint (secure file sharing, content intranet)
• Bookings (online appointment scheduling)
• MileIQ (reporting/tracking employee mileage)

Cloud & Mobile

Another big benefit that Microsoft 365 offers over Office 2019 is the ability to use the software on any device, from any internet connected location.

86% of businesses that use cloud software say they see significantly higher employee engagement.

One thing the quarantine during the coronavirus pandemic made very clear, is businesses that want to stay resilient and operational in the face of unforeseen events, need to use cloud-based business applications. This ensures companies can be run remotely and employees have access to data and apps they need to serve customers from anywhere.

Get Help with a Business Migration to Microsoft 365

One thing that holds companies back from upgrading to Microsoft 365 is the thought of doing a migration. Skyline Business Technology can help with expert IT professionals that will take you through a successful and trouble-free transition.

Contact us today to schedule a consultation. Call 260-225-3133 or reach us online.