Table of Contents
- Is It Better to Buy Office 2024 Outright or Subscribe to Microsoft 365 for a Small Business?
- The October 2025 Deadline Explained
- The Risks of Using Unsupported Software
- Security Holes
- Compliance Failures
- Compatibility Issues
- No Technical Help
- An Overview of Office 2024
- System Requirements
- Key New Features
- Support Lifecycle
- An Overview of Microsoft 365 Apps
- Applications and Services
- Cloud Integration
- AI-Powered Features
- Security and Updates
- Crucial Distinctions: A Side-by-Side Look
- Analyzing the Cost
- Microsoft Office 2024 Costs (One-Time)
- Microsoft 365 Apps Costs (Annual Subscription)
- Long-Term Cost Comparison
- Making the Right Decision for Your Organization
- How important is teamwork and collaboration?
- Does my workforce need to be mobile?
- Do we want to use AI to improve our work?
- What does our budget look like?
- How do we handle software changes?
- Conclusion
Is It Better to Buy Office 2024 Outright or Subscribe to Microsoft 365 for a Small Business?
The support for Office 2016 and Office 2019 is ending. You must choose a path forward before October 14, 2025. Your decision is between buying Office 2024 one time or paying a subscription for Microsoft 365 Apps. Both options give you essential programs like Word, Excel, and PowerPoint. However, they are very different in how you pay, their use of artificial intelligence (AI), how they connect to the cloud, and how they get updates. This guide will compare them directly to help you make the right choice for your business.
The October 2025 Deadline Explained
The final day of support for Office 2016 and Office 2019 is October 14, 2025. This date is firm. Microsoft will not offer any extensions or special paid updates, known as Extended Security Updates (ESU). After this date, Microsoft will no longer provide any security patches, fix any bugs, or offer any technical help for these older versions. While your old Word and Excel will still open, they will become progressively unsafe and unreliable.
This cutoff date is part of a larger wave of Microsoft products reaching their end of life. Other major business tools, including Exchange Server 2016/2019 and Skype for Business Server 2015/2019, also lose support around the same time. This creates a concentrated period of risk for any organization that has not planned its upgrades. It is critical to understand that unlike some other products, Office 2016 and 2019 will receive no ESU program. This is a definite end.
The Risks of Using Unsupported Software
Continuing to use Office 2016 or 2019 after the deadline exposes your organization to serious and escalating dangers. These risks are not just theoretical; they can have real-world consequences for your security, legal standing, and daily operations.
Security Holes
Any new security weakness found in Office after October 14, 2025, will never be fixed. Hackers actively look for these kinds of vulnerabilities. They can create a special Word or Excel file that, when opened, allows them to install malware, steal data, or take over a computer. Your business becomes an easy target.
Compliance Failures
Many industries are governed by rules that require companies to use supported and secure software. These can include healthcare (HIPAA), finance (PCI DSS), or data privacy (GDPR). Using unsupported Office versions can cause you to fail a compliance audit, leading to heavy fines, loss of certifications, and damage to your reputation.
Compatibility Issues
The world of technology moves on. New file formats, features, and third-party tools are built for the latest software. Over time, your employees will face more problems. They might not be able to open a file sent by a client, a partner’s Excel spreadsheet might not function correctly, or a critical add-in might stop working. This “compatibility drift” leads to lost productivity and frustration.
No Technical Help
If something goes wrong with your unsupported Office installation, you are on your own. There is no Microsoft support team to call for help. A problem that might have been a quick fix can turn into hours or days of downtime, as your IT team struggles to find a solution without any official resources.
An Overview of Office 2024
Office 2024 is the traditional choice. You pay for it once, and you own that version of the software forever. It is a perpetual license. Think of it as a snapshot in time; it includes all the features developed for Office up to its release in 2024, but it will not receive any new features after that. It will only receive security updates to keep it safe.
The business editions of Office 2024 include Word, Excel, PowerPoint, OneNote, and Outlook.
System Requirements
- Processor: A minimum of a 1.1 GHz dual-core processor is needed.
- Memory: Your computer should have at least 4 GB of RAM.
- Storage: You need 4 GB of available disk space for installation.
- Display: A screen resolution of 1280 x 768 is the minimum.
- Operating System: It runs on Windows 10, Windows 11, and the server versions Windows Server 2022/2025.
Key New Features
Office 2024 includes several improvements over the 2016 and 2019 versions.
- It has a modern, cleaner look that matches the design of Windows 11.
- Accessibility is improved, with better voice typing and a more consistent dark mode.
- Excel gets powerful new tools like Dynamic Arrays and new functions such as XLOOKUP, which make working with data much easier.
- Word has better document recovery, helping you get your work back after an unexpected computer crash.
- Outlook’s search is faster and more reliable, helping you find emails quickly.
- PowerPoint receives better tools for including multimedia content in presentations.
Support Lifecycle
Office 2024 (the standard perpetual version) has a five-year support period. It will receive security updates until October 2029. After that, it will become unsupported, just like Office 2016/2019 are now. There is also a special version called Office LTSC 2024, which stands for Long-Term Servicing Channel. This version is for specialized environments, like medical equipment or factory floor computers, that cannot tolerate frequent changes. It also has a fixed five-year support lifecycle with no feature updates.
This predictable, stable nature makes Office 2024 a good choice for organizations that value consistency above all else.
An Overview of Microsoft 365 Apps
Microsoft 365 Apps is a subscription service. You pay a recurring fee (monthly or yearly) for the right to use the Office applications. In return, you get software that is always up to date with the latest features, security patches, and cloud services. It is designed for the modern workplace where collaboration and flexibility are key.
Applications and Services
A subscription includes the full desktop versions of Word, Excel, PowerPoint, Outlook, OneNote, Access, and Publisher. You also get web and mobile versions of these apps, allowing you to work from any device. The subscription also bundles 1 TB of OneDrive cloud storage per user.
It is important to note that some services require a higher-tier plan. While the basic “Apps for Business” plan gives you the software and OneDrive, plans like “Business Standard” or “Business Premium” add hosted email (Exchange Online), a team collaboration platform (SharePoint), and other services.
Cloud Integration
This is a major difference. Microsoft 365 is built around the cloud.
- With 1 TB of OneDrive storage, users can save all their files online, access them from anywhere, and share them easily.
- Real-time co-authoring allows multiple people to edit the same Word document, Excel spreadsheet, or PowerPoint presentation at the same time. You can see your colleagues’ changes as they happen.
- Cloud services like Exchange and SharePoint provide a complete infrastructure for email, calendars, and team-based document management.
AI-Powered Features
Microsoft 365 Apps is the only way to get Microsoft Copilot, the AI assistant built into Office. Copilot is available as a separate, paid add-on for eligible Microsoft 365 subscribers. It is not included by default.
Copilot can:
- Draft entire documents or emails in Word and Outlook based on a simple prompt.
- Generate formulas, analyze data, and create charts in Excel.
- Build a complete presentation in PowerPoint from a Word document or an outline.
- Summarize long email threads to catch you up quickly.
Office 2024 has zero AI features and does not support Copilot. For businesses that want to use AI to improve productivity, Microsoft 365 is the only option.
Security and Updates
Microsoft 365 Apps are updated continuously. New features and security patches are delivered automatically every month. Higher-tier plans (like Business Premium and E5) also include advanced security tools. These can include advanced threat protection, which scans for malicious links and attachments, and data loss prevention (DLP), which can stop employees from accidentally or intentionally sending out sensitive company information.
Crucial Distinctions: A Side-by-Side Look
The best way to understand the choice is to compare the two options directly on the points that matter most to a business.
Feature | Office 2024 | Microsoft 365 Apps |
---|---|---|
Pricing Model | One-time purchase per device. | Recurring subscription per user.Recurring subscription per user. |
Core Apps | Includes Word, Excel, PowerPoint, Outlook. | Includes all Office apps plus 1 TB of OneDrive. |
Updates | Receives security updates only. No new features after release. | Receives continuous security and feature updates. |
AI Featues | None. Does not support Copilot. | Supports Microsoft Copilot (with a paid add-on). |
Cloud & Collaboration | Works offline. No integrated cloud storage or co-authoring. | Deeply integrated with the cloud for storage and real-time co-authoring. |
Multi-Device Use | Licensed to a single computer. | Licensed to a user, who can install it on multiple devices (PC, Mac, tablet, phone). |
Ideal For | Stable environments, offline work, predictable budgets. | Collaborative teams, mobile workforces, businesses wanting the latest technology. |
Analyzing the Cost
For many organizations, the decision comes down to money. The pricing models are fundamentally different, and a long-term cost analysis is essential.
Microsoft Office 2024 Costs (One-Time)
These are approximate, one-time costs.
- Office Home & Business 2024: Around $249.99 per device. This is for small businesses and includes Word, Excel, PowerPoint, OneNote, and Outlook.
- Office LTSC Standard 2024: Roughly $400-$500 per device. This is for larger organizations and requires volume licensing.
- Office LTSC Professional Plus 2024: Approximately $660-$723 per device. This adds the Access database program.
Pricing for LTSC versions is not public; you must get a custom quote from a certified Microsoft reseller.
Microsoft 365 Apps Costs (Annual Subscription)
These are approximate, per-user, annual costs.
- Microsoft 365 Apps for Business: Around $99 per user per year. This includes the desktop apps and OneDrive storage only.
- Microsoft 365 Business Standard: Around $150 per user per year. This adds hosted email (Exchange) and SharePoint.
- Microsoft 365 Business Premium: Around $264 per user per year. This adds advanced security and device management tools.
- Microsoft 365 Enterprise: Enterprise plans (E3, E5) cost more and add advanced compliance and security features.
Long-Term Cost Comparison
A simple calculation might suggest Office 2024 is cheaper. If you keep the software for five years, a single $250 purchase seems better than paying $150 every year. However, this view is incomplete.
The subscription price for Microsoft 365 includes value that a one-time purchase does not. This includes the 1 TB of cloud storage (which would cost extra otherwise), the ability to install on multiple devices per user, and the constant stream of new features that can improve productivity. For example, a new function in Excel or an AI feature in PowerPoint could save your employees hours of work, quickly justifying the subscription cost.
Conversely, some organizations prioritize stability. Microsoft’s updates can sometimes be unreliable and cause disruption. For a business where uptime is paramount, paying a one-time fee for a stable, unchanging piece of software (Office 2024) can be seen as paying a “stability tax” that is well worth the price.
Making the Right Decision for Your Organization
There is no single correct answer. The right choice depends on your company’s needs, culture, and priorities. To decide, ask yourself these key questions:
How important is teamwork and collaboration?
If your employees frequently work together on documents, spreadsheets, and presentations, the real-time co-authoring in Microsoft 365 is a powerful advantage. If most people work alone on their files, Office 2024 is sufficient.
Does my workforce need to be mobile?
If your employees work from home, on the road, or switch between a desktop, laptop, and tablet, Microsoft 365 is a better fit. A single subscription allows a user to have a consistent experience across all their devices. If everyone works on one dedicated desktop computer in the office, Office 2024 works well.
Do we want to use AI to improve our work?
If you see value in using artificial intelligence to draft content, analyze data, and automate tasks, then you must choose Microsoft 365 to get access to Copilot. If you do not need or want AI tools, Office 2024 is the simpler choice.
What does our budget look like?
A one-time purchase (Office 2024) is a capital expenditure (CapEx). A subscription (Microsoft 365) is an operating expenditure (OpEx). Your accounting preference can influence the decision.
How do we handle software changes?
If your organization thrives on having the latest tools and can adapt to change easily, the continuous updates of Microsoft 365 are a benefit. If your environment is highly regulated or your users resist change, the stability of the unchanging Office 2024 is better.
Conclusion
The October 14, 2025, deadline is a hard stop. You must move away from Office 2016 and 2019 to stay secure and compliant. Your choice between Office 2024 and Microsoft 365 Apps is a strategic one that will shape how your organization works for the next several years.
Office 2024 is the right path for businesses that prioritize stability, need to work fully offline, and prefer a predictable, one-time cost. It provides a reliable set of tools that will not change for its entire five-year lifespan.
Microsoft 365 Apps is the better path for modern, dynamic businesses that depend on collaboration, have a mobile workforce, and want to leverage the latest technology, including AI. The subscription model ensures your team always has the best tools available.
Evaluate your organization’s needs against the strengths of each option. The time to plan your upgrade is now.