Is Microsoft Office 2021 Right for Your Small Business?

Productivity tools are vital to the success of any small business. With a market share of around 45%, Microsoft products have been a popular and practical choice for decades. However, the one thing that has changed is their business model. They now offer multiple tiers of subscription models and volume licensing, all while offering a more classic standalone version with Office 2021. Is it still a good value, though? It depends on your business and needs.

What Is Microsoft Office 2021?

Microsoft Office 2021 is the latest version of the productivity suite from Microsoft. It offers a one-time purchase option for users who prefer a non-subscription model. This version is designed for businesses seeking a full set of tools for document creation, data analysis, presentations, email, and more.

The suite includes updated versions of classic applications such as Word, Excel, PowerPoint, and Outlook. Each one is enhanced with new features to boost efficiency and user experience. For example, Excel 2021 introduces new functions and dynamic arrays. Meanwhile, PowerPoint 2021 offers new presentation capabilities. With its focus on improved performance, enhanced security features, and compatibility with both Windows and MacOS, Office 2021 stands out as a versatile and secure choice for modern computing needs.

Office 2021 Is Licensed per Device Rather Than per User

One of the biggest highlights of Office 2021 is it’s licensed per device. If multiple staff members share a single computer, only one license must be purchased. Although many of Microsoft’s monthly plans are per-user, that would offer substantial savings in some situations. If employees need multiple devices to do their work, or there are no shared devices in a business, that added value is lost.

Support Lifecycles Lower The Value of Perpetual Software

Paying upfront for Office 2021 means no monthly cost. It may take a while to break even, but once that point is reached, it quickly becomes a better deal. That is doubly so if multiple people share a single device. However, support lifecycles can throw a wrench in that. Microsoft typically offers five years of support for the standalone office software. Office 2021 is set to be retired on October 13, 2026, meaning if a company purchased it today, it would have a little under three years of full support.

What happens after the mainstream support lifecycle ends is hazier. The last two releases offered extended support after the retirement date. Microsoft Office 2019 was retired last month after five years but is receiving two years of extended support through October 14, 2025. Looking further back, Microsoft Office 2016 was retired on October 13, 2020. It’s getting five years of extended support that’s set to end on the same date as Office 2019.

Outdated Microsoft Office Software Is a Cybersecurity Risk

Cybersecurity is an ongoing challenge for any business. When it comes to software, 80% of cyberattacks use vulnerabilities reported more than three years ago. That makes outdated software an ongoing risk, and Microsoft Office 2021 is no exception. Businesses that choose to stick with it well beyond the end of its support date will become increasingly at risk. In contrast, their monthly paid plans receive indefinite updates and are frequently patched with the latest security fixes.

How Does Office 2021 Compare To Other Business Plans?

Office 2021, as a perpetual version, offers a one-time purchase model. That differs significantly from the subscription-based Microsoft 365 plans. Let’s break down how Office 2021 compares to other plans:

Office Home & Business 2021

• Key Features: Includes core applications like Word, Excel, PowerPoint, and Outlook. It doesn’t include the website or mobile version.
• Pricing: It costs $249.99 as a one-time purchase.
• Consideration: A good option for those who need basic Office functionalities at home or in the workplace. It’s licensed per device, meaning multiple people can share it.

Office Professional 2021

• Key Features: Includes the core Office applications along with Publisher and Access tools. It doesn’t include the website or mobile version.
• Pricing: Priced at $439.99 for a one-time purchase.
• Consideration: This license is restricted to activation on only one computer. Ideal for those who need advanced Office features but don’t want to purchase a monthly plan. It’s licensed per device, meaning multiple people can share it.

Office LTSC 2021 (Long-Term Servicing Channel)

• Key Features: Includes the full suite of Office applications available locally on the computer. It’s tailored for environments where consistency and minimal changes are essential. It doesn’t include the website or mobile version.
• Pricing: Available only through volume licensing. That typically involves custom pricing based on the organization’s needs and the number of licenses required.
• Consideration: It’s a good fit for scenarios where systems need a stable and locked-in version of Office without updates. It’s licensed per device, meaning multiple people can share it.

Microsoft 365 Apps for Business

• Key Features: Includes desktop versions of Microsoft 365 apps with premium features and 1 TB of cloud storage per user. It provides standard security and anytime phone and web support. It includes desktop, website, and mobile versions. It supports up to 300 users and can be installed on up to 5 devices per user.
• Pricing: $8.25 per user/month (Annual subscription, auto-renews).
• Consideration: Best for organizations that require essential Office applications and cloud storage. While it includes OneDrive, it lacks collaboration tools like Teams, Exchange, and SharePoint.

Microsoft 365 Apps for Enterprise

• Key Features: It offers the full suite of Microsoft Cloud applications and more advanced compliance and security measures. It includes desktop, website, and mobile versions. It supports an unlimited user count and can be installed on up to 5 devices per user.
• Pricing: $12.00 per user/month (Annual subscription).
• Consideration: Ideal for those needing flexible access to Office applications without the full array of enterprise services higher tier plans offer. It doesn’t have some collaboration tools like Teams, Exchange, and SharePoint.

Microsoft 365 Business Standard

• Key Features: Includes everything in Microsoft 365 Apps for Business, plus more collaboration tools like Teams. It includes desktop, website, and mobile versions. It supports up to 300 users and can be installed on up to 5 devices per user.
• Pricing: $12.50 per user/month (Annual subscription, auto-renews).
• Consideration: This plan is a complete solution for businesses needing additional features and services.

Microsoft 365 Business Premium

• Key Features:Includes all Microsoft 365 Business Standard features plus advanced security, device management, and additional compliance tools. It includes desktop, website, and mobile versions. It supports up to 300 users and is installable on up to 5 devices per user.
• Pricing:$22.00 per user/month (Annual subscription, auto-renews).
• Consideration:Best for businesses needing enhanced security, IT controls, and standard collaboration and productivity tools.

Office 365 E1

• Key Features: The E1 plan is the cheapest enterprise option. It offers web and mobile versions of Office Suite, a 50GB mailbox in Outlook, Microsoft Teams, SharePoint, and Yammer. Includes the website and mobile versions of apps but does not provide the desktop version. It supports an unlimited user count and can be installed on up to 5 devices per user.
• Pricing: $10.00 per user/month (Annual subscription).
• Consideration: A practical choice for organizations needing essential tools for collaboration and communication without desktop applications.

Office 365 E3

• Key Features: Builds on E1 with the full desktop suite of Office 365 applications, increased email and SharePoint storage. It includes desktop, website, and mobile versions. It supports an unlimited user count and can be installed on up to 5 devices per user.
• Pricing: $23.00 per user/month (Annual subscription).
• Consideration: A balanced option for those needing productivity tools and storage but not the advanced security and communication features of E5.

Office 365 E5

• Key Features: Includes all E3 features plus enhanced security, audio-conferencing, a business phone system, up to 100GB email mailboxes, unlimited OneDrive storage, and more. It includes desktop, website, and mobile versions. It supports an unlimited user count and can be installed on up to 5 devices per user.
• Pricing: $38.00 per user/month (Annual subscription).
• Consideration: The premium choice for businesses seeking the most advanced Office 365 features, though it may not be the most cost-effective for all.

The choice between these options depends on the user’s specific needs, such as the number of users, device flexibility, and the need for cloud services and regular updates.

Office 2021 Is Best for Small Businesses With Limited Needs

Microsoft Office 2021 is a strong option for small businesses with limited needs. As a one-time purchase, this version is a good fit for companies that only need essential tools like Word, Excel, PowerPoint, and Outlook. The more people who share the same device, the more value the license has. Due to the lack of recurring costs, it also makes for a clearer upfront expense.

Office Professional 2021, which offers a few additions beyond Office Home & Business 2021, is $190 more. While it’s still a fair value for some companies, the higher price point may be less appealing. Monthly subscriptions can offer similar features and more up-to-date versions, reducing the value of the cheaper version. However, if multiple people use a single device throughout a workweek, it quickly gains value.

It’s also important to consider the longevity and security of any purchase made. Office 2021 has three years of mainstream support left at a little over two years into its lifecycle. Extended support is not guaranteed, especially as Microsoft continues pushing subscription-based software licensing on more of their services. While Office 2021 is a budget-friendly option, it’s essential to understand your needs and weigh each plan’s pros and cons.

Does your small business need help managing and choosing the right Office 2021 plan? Get in touch for a consultation via our contact form or call us at: +1 (800) 297-8293