Microsoft 365 Home Vs Microsoft 365 Business: Which One Is Better?  

Microsoft 365 is a set of apps and services that is now used by over a million businesses across the world. It is a cloud-based solution with multiple features which provides a secure and affordable platform for users to store their data and information and work as a team. Earlier known as Office 365, Microsoft 365 comes in three versions – Home, Business, and Enterprise. 

In this blog, we will draw a comparison between the two major Microsoft 365 plans – Home and Business. 

Office 365 Home vs Office 365 Business: Which One Is Better?

Quick Comparison Between Microsoft 365 Home Vs Microsoft Business

While the majority of the features and functions of Microsoft 365 Home and Microsoft Business appear to be similar, there are significant differences. In many ways, the basic plan mimics Microsoft 365 Home, although it’s designed for commercial use. You can add up to 300 other accounts to your Microsoft 365 Business subscription, allowing them to install and use the software on all of their devices.

Let’s take a closer look at the comparisons between the two based on a variety of additional criteria.


The primary differences between the two plans are the user base and the number of users offered. Microsoft 365 Home is primarily designed for an individual user who wishes to perform the basic functionalities. On the other hand, Microsoft 365 Business is primarily for entrepreneurs and SMEs.

The other major difference is in the number of users offered by the two plans. Microsoft 365 Home can be shared with up to 6 people. Whereas, Microsoft 365 Business can be shared with up to 300 people.



The difference in the functionality of the two plans is in the features offered by them. Microsoft 365 Home has just the basic features. Whereas the Microsoft 365 Business license has a lot more features than just the basic suite of applications and services. Here are a few:

I. Exchange Server

Microsoft Exchange Server is a platform for email, contact management, scheduling, calendaring, and collaboration developed by Microsoft. For corporate usage, it is installed on the Windows Server operating system (OS). The Home license does not give access to the Exchange Server. But, with the Business license, users get access to the Exchange server with 50 GB of email storage.

II. Skype

Skype is used by millions of people and businesses to make free video and voice one-to-one and group conversations, exchange instant messages and share files with others. You can use Skype on your phone, PC, or tablet, whatever is most convenient for you. The Home license gives the users access to 60 minutes (each) of Skype time. Whereas, the Business license gives them access to Skype for Business in which users get unlimited HD video conferencing.

III. SharePoint

Microsoft SharePoint is mostly used by businesses to develop websites. Users using Microsoft 365 Home do not have access to SharePoint. Microsoft 365 Business, on the other hand, includes SharePoint online, which provides users with a collaborative platform to share and manage documents and collaborate. As a result, they can increase their team’s production. It’s just a web browser, such as Chrome, Microsoft Edge, or Firefox, that’s all you need.

IV. Microsoft Teams

Users can get Microsoft Teams access with Microsoft 365 Business but not with the Home license. This provides users (local, distributed, or remote workgroups) with a platform for communication, chats, video conferences, etc. Microsoft Teams is exceptionally simple and user-friendly, and it requires little to no setup.

V. Microsoft Planner

Microsoft Planner with Microsoft 365 Business allows users to schedule meetings, assign tasks, and manage projects. Furthermore, the Microsoft Planner is now available in Microsoft Teams and Microsoft SharePoint as well. You can also establish deadlines, share files, and, of course, interact with your team members. The Home license, on the other hand, does not have this feature.

Security And Compliance

Due to its mobility and collaboration capabilities, Microsoft 365 is quite popular among businesses. However, with cloud hosted Microsoft 365, security is paramount due to the rapid introduction of new threats. As a result, your company must employ all available methods to protect the information of your consumers.

Keeping this in mind, Microsoft 365 comes with built-in features and custom controls to assist customers in meeting compliance requirements. In the Business license, users get a lot of built-in security features such as Advanced Threat Protection and Exchange Online Protection. The admin can also control who to give access to the documents in Microsoft 365 Business. On the other hand, the Home license does not have any in-built security features.

Which One Is Right For You?

There is no definite answer to this. It all depends on your organization’s demands and how frequently your teams utilize Microsoft and its services. As a result, there are several aspects to consider before making a selection. Microsoft has already done the hard work for you by categorizing its plans and packages by industry, so the first step is to select the one that best fits your needs.

Microsoft 365 Home can be used for personal use with just the basic features and minimal security. However, Microsoft 365 Business is mostly preferred by SMEs and startups due to its extensive suite of features and security patches that it offers to its users.

Also, it’s worth noting that in-depth knowledge of all the plans of Microsoft 365 will help you make the right decision before migrating to the cloud. Being the most trusted Microsoft Tier-1 Direct Partner, the customers can purchase the best Microsoft products like Microsoft 365 from Ace Cloud Hosting at discounted prices. Our team of cloud professionals is here to assist you with full support 24×7 through chat, phone, or email.

For a better Microsoft 365 experience, contact our Microsoft certified experts at 855-980-2150. Hurry up! Steal the deal! 

About Julie Watson

Julie is a dynamic professional with over 16 years of rich experience as a VDI and Application Hosting expert. At Ace Cloud Hosting, she humanizes disruptive and emerging remote working trends to help leaders discover new and better possibilities for digital transformation and innovation by using cloud solutions with an enterprise-class security approach. Beyond work, Julie is a passionate surfer.
On the weekend, you will find her hanging out with her family or surfing around the North Shore of Oahu.

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