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

Microsoft 365 is a set of apps and services used by over a million businesses worldwide. It is a cloud-based solution with multiple features that provide 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: Microsoft 365 Home, Microsoft 365 Business, and Microsoft 365 Enterprise.

Choosing the right Microsoft 365 plan can significantly impact your productivity and collaboration capabilities. In this blog, we will mainly talk about the key differences between Microsoft 365 Home and Microsoft 365 Business, helping you understand which option best suits your personal or professional needs.

Whether you’re an individual user or a business owner, our Microsoft 365 Home vs Microsoft 365 Business comparison will help you understand the features and benefits of both Microsoft 365 plans (Home and Business), ensuring you make an informed decision about your digital workspace.

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Microsoft 365 Home Overview

Microsoft 365 Home is designed for families and individuals. It offers a suite of productivity tools, including Word, Excel, PowerPoint, and Outlook. It supports up to six users, each with 1TB of OneDrive cloud storage. With features like Microsoft Teams for personal use and advanced security options, it’s ideal for managing personal tasks, school projects, and home organization.

Microsoft 365 Business Overview

Microsoft 365, this version, is tailored for small to medium-sized enterprises. It provides robust tools like Word, Excel, PowerPoint, and Outlook, along with advanced business services like Microsoft Teams, SharePoint, and Exchange. It includes enhanced security features and compliance capabilities, supporting seamless collaboration and data protection. Perfect for boosting productivity and streamlining operations, it caters to professional environments with varying needs.

Quick Comparison Between Microsoft 365 Home Vs Microsoft Business

While most 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, letting them install and use the software on all their devices.

Let’s compare these two based on several key factors.


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 the number of users offered by the two plans. Microsoft 365 Home can be shared with up to 6 people, while Microsoft 365 Business can be shared with up to 300 people.


The difference in the functionality of the two plans is in the features they offer. Microsoft 365 Home has just the basic features. At the same time, the Microsoft 365 Business license has a lot more features than just the basic suite of applications and services. Here are a few:

Exchange Server

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


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. The Business license gives them access to Skype (for Business), which allows users to have unlimited HD video conferencing.


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.

Microsoft Teams

Users can access Microsoft Teams 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.

Microsoft Planner

Microsoft Planner with Microsoft 365 Business allows users to schedule meetings, assign tasks, and manage projects. Furthermore, Microsoft Planner is now available in Microsoft Teams and Microsoft SharePoint. You can also establish deadlines, share files, and 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 your consumers’ information.

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 many built-in security features, such as Advanced Threat Protection and Exchange Online Protection. The admin can also control who can access the documents in Microsoft 365 Business. On the other hand, the Home license does not have any built-in security features.

Microsoft 365 Home vs Microsoft 365 Business: Comparison Table

Sure, here’s a comparison table highlighting the key differences between Microsoft 365 Home and Microsoft 365 Business:

Feature Microsoft 365 Home Microsoft 365 Business 
Number of Users Up to 6 users (Family), 1 user (Personal) 1 to 300 users 
Storage 1TB OneDrive per user 1TB OneDrive per user (up to 5TB with plans) 
Office Apps Word, Excel, PowerPoint, Outlook, OneNote Word, Excel, PowerPoint, Outlook, OneNote, Access (PC only), Publisher (PC only) 
Pricing $99.99/year (Family) or $69.99/year (Personal) Starts at $6/user/month (Basic) to $22/user/month (Premium) – Here Check the detailed pricing. 
Email Hosting NoYes (50GB mailbox per user with Exchange) 
Collaboration Tools Microsoft Teams (for personal use) Microsoft Teams (for business use), SharePoint, Yammer 
Security Features Basic security options Advanced security features, including data loss prevention and device management 
Business Tools N/A Bookings, Invoicing, MileIQ (varies by plan) 
Support Standard Microsoft Support 24/7 phone and web support 
Admin Controls Limited Comprehensive admin controls and policy settings 
Compliance Not included Advanced compliance tools like eDiscovery and data governance 

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 Microsoft 365 plans will help you make the right decision before migrating to the cloud. Being the most trusted Microsoft Tier-1 Direct Partner, customers can purchase the best Microsoft products, such as Microsoft 365, from Ace Cloud 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 +1-855-223-4887. 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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