Introduction

Office 365 delivers Microsoft-hosted services such as Exchange Online e-mail and on-premises software such as the Office suite under a subscription license. The services can help organizations reduce costs, add and remove capacity quickly, and improve uptime and security, while the software can reduce licensing costs and mitigate license compliance risks.

Office 365: What and Why

For enterprises, the key Office 365 services and software are delivered by the Office 365 E1, E3, and E5 subscription plans, which are the focus of this report. (See the illustration “Office 365 Software and Services“.)

Office 365 allows organizations to outsource e-mail hosting and other functions to Microsoft, freeing up IT personnel and avoiding costs associated with server hardware acquisition, hardware and software management, electricity, and other data center—related expenses. It can also deliver the Office 365 ProPlus suite for on-premises use. Office 365 ProPlus is similar to the Office Professional Plus suite. However, Office 365 ProPlus is purchased and activated on a Per-User subscription model rather than the Per-Device model of Office Professional Plus. In most situations, the Office 365 ProPlus licensing model reduces licensing costs and simplifies compliance.