The new Office 365 subscriptions for consumers and small businesses

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On July 16, we unveiled the new Office, a cloud service that works beautifully with touch, stylus, mouse or keyboard on new Windows devices – from PCs to tablets.  With this release, we’re modernizing Office, and an important part of that is the introduction of new subscriptions.  Subscriptions open a host of possibilities, and subscribing to Office 365 will be the best choice for many – especially families, people with multiple devices and small businesses.

With a single subscription, you can use Office across a wide variety of devices – everything from PCs and tablets to Macs.  You can easily save to and access your documents from the cloud and personalize your experience with Office.  We will update Office more frequently to support new scenarios, and subscribers will always be current with the latest innovations.  Subscriptions also open new possibilities like integrating web services into Office in ways never before possible; in this release, we’ve added Skype calling minutes and SkyDrive storage, and in the future, we’ll do more.

In this post, you’ll find details on how to get the new Office 365 subscriptions for consumers and small businesses when available.

Office 365 Home Premium

A single subscription to Office 365 Home Premium covers the entire household.  While you use a laptop, your daughter can use the PC in the den, and your son can use a tablet.  You can each sign-in with your individual Microsoft accounts using your settings and accessing your documents, but you still need just one subscription to get:

  • All the Office applications: Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher.*
  • Ability to use Office on up to 5 PCs or Macs shared among all users in the home. Subscribers also have flexibility to change their 5 devices at any time, and full featured Office applications are available for temporary use on any PC.
  • Nearly 3 times the amount of SkyDrive storage with an additional 20GB over the 7GB you get for free.
  • 60 minutes of SkypeTM world calling per month to keep in touch with family anywhere.**
  • Premium licenses that are always up-to-date with latest new features and services released regularly. With the new Office, new capabilities will be added multiple times per year.

Office 365 Home Premium, a single subscription for up to 5 users, will be available in both physical and online stores across 227 markets worldwide for $8.33 per month ($99.99 billed annually).  A free 30 day trial will also be available online.




Office 365 Small Business Premium

In addition to Office 365 Small Business, the new Office 365 Small Business Premium is designed for organizations with 1-10 employees, and each user gets the following benefits:

  • All the Office applications: Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher plus Lync.*
  • Ability to use Office on up to 5 PCs or Macs for a single user. Users also have flexibility to change their 5 devices at any time, and full featured Office applications are available for temporary use on any PC.
  • A 25 GB Outlook mailbox, shared calendar, contact manager, scheduling and task-list tools, and 10 GB professional-grade cloud storage for the organization plus 500 MB per user.
  • Ability to host online meetings with audio and video using one-click screen sharing and HD video conferencing (HD video camera required)
  • Set up, build, and maintain a public-facing website with no additional hosting fees.
  • Premium licenses that are always up-to-date with latest new features and services released regularly. With the new Office, new capabilities will be added multiple times per year.
  • No IT expertise needed. Simple setup to get started quickly and customize the service with ease.

Office 365 Small Business Premium will be available in both physical and online stores, including small business resellers, across 86 markets worldwide for $12.50 per user per month ($149.99 billed annually).  A free 30 day trial will also be available online.

Other offerings

People who need Office on only one device can buy traditional Office suites.  These offerings do allow you to save to SkyDrive by default and make it easy to connect to the cloud, but they are not available for multiple devices and do not include the latest updates or additional SkyDrive and Skype services. Prices start at $139.99 for Office Home and Student 2013 which includes Word, Excel, PowerPoint and OneNote. Office Home and Business 2013 includes all the applications in Home and Student plus Outlook.  Office Professional 2013 includes the applications in Home and Business plus Access and Publisher.   In addition, Office Home & Student 2013 RT comes on all Windows RT devices and includes fully featured editions of Word, Excel, PowerPoint and OneNote optimized for ARM devices.

Buy Office 2010 and get one year free of Office 365 Home Premium

Starting October 19, people who purchase Office 2010 or Office for Mac 2011 will qualify to download, for free, one year of Office 365 Home Premium or the equivalent Office 2013 offering, when available.  Small business customers in applicable markets will also be eligible for a three-month trial of Office 365 Small Business Premium.

Subscription features and details are available here.  In the coming months, we’ll share information about Office 365 Enterprise and other business offerings.  Until then, please try the customer preview yourself.

* OneNote, Access and Publisher available for PC only.

** Skype account required. Excludes special, premium and non-geographic numbers. Calls to mobiles are for select countries only.  Skype available only in select countries.


  1. JagsDesai

    Could someone please explain this: "Ability to use Office on up to 5 PCs or Macs for a single user. Users also have flexibility to change their 5 devices at any time, and full featured Office applications are available for temporary use on any PC". I’ve signed up many in my business circle for Office 365 E1 plan, but in E1 there’s clerity.

    As in a small business evironment, one user may not be using FIVE PCs, so what happens, in regards to Office 365, when five different user uses five different PCs? And what’s this full featured Office apps being available temporarily? I could get many to join this Office 365 Small Business Premium but not with terms like these.

  2. chocky005

    ($99.99 billed annually) Will this be the price world wide?

    Or will there be the "Fake Australian Tax" added to this? As we know how Microsoft loves to change Australians an additional 25% for software.

  3. Clint Patterson

    @Andrew. $99.99 is the USD price. It is priced in local currencies worldwide, based on a variety of local factors. A few of the more prominent local currency prices are 119.99 AUD, 99.99 Euro, 79.99 GBP. More information will be available from your local Microsoft office.
    @JagsDesai. If you get Small Business Premium for 1 person, she can install Office applications across all of her devices – up to 5 PCs or Macs. She cannot, for example, then equip 4 of her co-workers (each of whom would need a subscription). This is designed to address the growing trend of information workers who have more than one device on which they are getting work done. Regarding access to full-featured apps available temporarily, this is designed for when you’re away from one of those 5 devices and need access to full-featured Office; you can sign in, stream the apps, do your work, log off and leave no trace on the PC.

    • Demokraats1

      For everyone in EU this means 30% more expensive Office.

      A bit less affordable …

    • @clint, 99.99USD is around 95AUD, so the "local factors" are worth AUD24….what a joke!!

    • @Clint Patterson according to the price of $119.99 @Andrew is spot on about the 25% "Fake Australian Tax". Why the price diffrence? Surely most of the people in countries like Australia and the U.S. will purchase via download, so distribution costs should be almost the same.

      Any word on the New Zealand price? Converting the Australian price to NZD gives $150, will this be the price?

  4. Will new Home & Student 2012 version be allowed to be installed on 3 computers like 2010 one?

    • Clint Patterson

      Vadim, the traditional 2013 SKUs can be installed on 1 PC or Mac. For multiple device installs, the subscription or multiple copies of the traditional SKU are required.

      • browsetech

        I am so sad to hear this. My family has used Office 2007 and Office 2010 with the possibility to install on 3 PC’s. For 1295 NOK (225 USD) it was a good price for Office. With a price of 280 USD (and probably more in in Euro and NOK) for just 2 licenses is not a good deal. I do hope you will sell Office 2013 with 3 licenses for the same price as Office 2010, or there is no reason for me to buy Office 2013. The subscription is to expensive, even if we Europeans get it for 99 USD, the only thing that would make me buy it would be 20GB extra for multiple accounts and if the 60 Skype minutes could be shared by multiple accounts.

  5. I’m currently a Office 365 P1 subscriber and looking foward to upgrading to the Office Small Business Premium edition. Are there any prospects we will see VOIP/IPPBX hosted services geared towards small businesses, ex. RingCentral, so we can use the Lync client as it was intended?

  6. Fredrik71

    So will the old Office 365 subscription plans disappear?
    We have Office 2010 in our office. In addition to that, we had planned on getting the current P1 plan for small businesses priced at 6 USD per month per user.
    In the new office 365, will this plan still be possible, or is 12,50 the cheapest plan for small business where you are required to pay for having the local office apps as well?
    I find this article very unclear on this point.

    • Clint Patterson

      Fredrik, this post addresses only the new consumer and small business subscriptions. We’ll share more about Office 365 for enterprises and students in the future. Office 365 Small Business is not going away and will be updated with new capabilities.

  7. rahul_amherenow

    Good stuff. Step in the right direction. Now how about a 1 computer subscription for about $20 a year? Not all of us have 5 PCs at home…

  8. michif100

    Any Education/School/University edition in sight? (I’m a teacher…..)

    • cutesunita21

      no, till now it is not in sight

  9. So instead of paying $150 once for a copy of Office Home and Student that I can use for a decade on 3 computers (I used Office XP until well after 2007 came out, and I still use 2007), over that same period I’m supposed to pay $1000 to MS for up to date office or $420 for no upgrades across 3 pcs? And if I go with the $1000 option, I get $10/year worth of extra skydrive storage that I (and someone with 5 computers and programs like DropBox or Live Mesh) don’t need and ~ $17 per year in Skype credit I won’t use? These plans are bad for consumers and just a tad ridiculous. I’m a big fan of Microsoft, and, even as a poor student, always thought Office was well worth the money. In fact, Microsoft Office is the only reason I haven’t switched to Mac or Linux, but at these prices I think I’ll just stick with Office 2007 until Libre Office or Kingsoft catches up with its features, or until I can save up for a Mac with iWorks.

  10. Brilliant. Microsoft is finally coming into the real world. At $99 per household of 5 devices, Office is now cheap enough to drop Open Office for good. If what is reported is true, I congratulate Microsoft.

  11. Harry Hersbach

    I think as a European Euro’s 99.99 is to much, i think for home and students a price of 4,50 a month would be high enough.
    As my kid is a student i will go for it, but 99.99 Euro’s he will stay with his Office 2007.

  12. How do the SkyDrive storage and Skype minutes work with multiple family members? Are they shared across multiple family member’s Microsoft Accounts (née Live IDs), or are they linked only to the purchaser’s account?

    My own SkyDrive already has >20GB of space, as I was a user before the drop to 7GB, but my wife’s doesn’t (and my kids don’t have/use SkyDrive yet).

    Likewise, if we are to use the Skype minutes to "keep in touch with family anywhere" then it would be helpful if we could use them to call *each other*, rather than all calls having to be initiated by the one person with the minutes.

    • Clint Patterson

      James, the SkyDrive storage and Skype ID are associated to one Microsoft Account / Skype ID. To share them across users in a household, you would need to share your ID.

      • Thanks for the info. That’s pretty disappointing, though: If it’s supposed to be a *family* subscription, then the benefits should be usable *by the family*.

        I guess you could do a partial workaround for the SkyDrive issue by the 20GB recipient setting up a "Family Documents" folder on their SkyDrive and make it give read/write permissions to the whole family. Hopefully that will work simply in all the applications. Some documentation of that use case might be in order.

        No workaround I can think of for the Skype issue, though.

        Suggesting "share your ID" is ridiculous, BTW. That would break so many things I can’t even count (starting with Windows 8 logins, Facebook integration, people being able to actually call or IM you in Messenger or Skype, etc, etc, etc).

  13. browsetech

    I don’t really look at this as a good plan. Today, my household has bought Office H&S 2007 and later 2010. For three PC’s it usually cost 210 USD bought on an offer we payed 175 dollar. More or less 60 USD per year. The additional 20 GB on SkyDrive is nice, driving the total up to 70 per year. As for skype, I may not even need 60 minutes a year, if I will use any at all.

    The question that will make or brake this for me is how it works for the household. Lets say it’s five people in the household. Is just the one who paid for it the one who gets the 20GB extra, or does more people get it. And what about skype, what if the one who payed don’t use skype, can another member of the household use the 60 free minutes? Is the minutes for one user or the whole household? And how easy is it to connect members (MS accounts) that is in the household?

    Also can the language be specific for a user? On the same computer I want the English version, but another users prefer Norwegian.

  14. Can someone let me know when office 365 will be available for government entities, such as municipalities and law enforcement. I read an office blog in may, but no further details have emerged…

  15. nightmare9921rt

    What is the partner opportunity with the subscriptions services? Will it be similar to Office 365?

    • Clint Patterson

      Peter, it will be similar. In July, we announced Office 365 Open whereby partners can offer Office 365 in more of a traditional model. Office 365 Small Business Premium is one SKU for which this applies. I’d recommend checking out MPN for the most up to date details.

  16. Geoff Coupe

    The subscription model has zero attraction for me.

    I bought Office Home and Student 2007 for 125 Euro almost 6 years ago; it’s still fine, and licensed for 3PCs – which is all I need.

    I would be paying 600 Euro for the equivalent term for Office 365 Home Premium under the subscription model. Even buying three copies of the traditional Home and Student versions of Office 365 is cheaper than that at 420 Euros.

    And frankly, I’m tempted to just buy one copy @ 140 Euros, and leave Office 2007 on the other two PCs.

    The subscription model may be great for Microsoft, but it makes no sense for me.

  17. ichmich2000

    I might be willing to go for the subscription, but only if it does not require to log in to the offline office applications. An activation key should be enough.

    • Clint Patterson

      Anonymous, logging in is not required to access offline Office apps.

  18. Peter Flindt

    Please forgive me this noob question, but what I will get if I would buy the consumer subscription for 99$? 1)The 7 apps as standalone and offline available applications (similar to the applications within Office 2010) plus Skydrive and Skype or 2)Something like Google Web Apps, that is only available if I be online, a complete cloud based Office that is only usable within a webbrowser?
    I know this question sounds very stupid, but I read about both on different websites that I usualy trust.

    • Peter, do you use the Consumer Preview of Office 2013? As I understand it, Office 365 will work the same way: The Office programs are installed locally on your computer. When saving a document, you can chose whether to save it in the Cloud or locally on your harddrive. So you can work offline with every program without being connected to the Internet.
      In addition, you may use the Web Apps or remote access, if you are away from your own computer.

  19. 10GB of Professional grade cloud storage – where is that stored? Skydrive? Azure? Sharepoint?

    • Clint Patterson

      Tom, it is SkyDrive Pro (aka SharePoint Online). The storage is for the organization and is pooled, so the administrator can allocate it based on an individual’s needs. In other words, you could get more because your job requires it while someone who does store a lot of documents get very little/none.

  20. account4sw

    Will there be install rights for RDS (Terminal Services) availalbe with 2013? This is an big disadvantage at the moment with Office 365 & Office 2010.

  21. Boyd Waters

    As a recovering IT Pro, I think that Office 365 Home Premium is a good deal. BUT there will be a HUGE PROBLEM selling this to consumers, because the subscription pricing EXPOSES the expense of computing products. It breaks the Best Buy conceit.

    Microsoft employs marketing and branding people with graduate degrees from LSE and Kellogg — no doubt they will come up with better ideas.

    But I, for one, welcome the experimentation with consumer subscription pricing. Long past due!

  22. i am looking forward to using this with our proposal software to see how it could be used by our client enterprises in addition to workflows and compliance steps already adopted. it looks like it might be a useful addition at a step or point, but needs more controls which are user friendly.

  23. Microsoft has not even published the German version of Office 365 (Office 2013) Consumer Preview. I expect they will publish international prices closer to the release date. Based on the pricing policy I saw in the past, prices in Europe will not differ largely from prices for the US market.

  24. hi! My "household" is quite shattered all over europe. I live in Stockholm, my sister lives in Munich and my mother is still back "home". I know that technically is possible to install office on the five computers independently from their physical location, but i’m curious to know if i’m still in the terms of the license of use.

    Thanks 🙂

  25. William Luc

    Thanks for this product it looks like really good value at US$99.99 per year, and makes it easy to always have the latest version.

    However I, like everyone else on this board, am baffled by the price disparity. Can someone please explain exactly what "local factors" are causing the price to increase by so much outside of the US?

  26. How will current Office 365 subscriptions be upgraded?

  27. Fabian Niesen

    Will the Sharpoint Online in Office 365 Small Business Premium able to use SSL? That the reason why I told everycustomer to use Office 365 Enterprise.

  28. I want to try Office 365 cloud

  29. parkernathan

    Question: What does the new Office 365 Small Business pricing mean for current Office 365 P Plan users? Will we be transitioning to the new Office 365 plans or how is this going to affect current Office 365 P Plan users? Does this mean we’ll now have Office itself included in the subscription?



  31. Dr.Nikhil

    Is it a hard gadget or a software tool? because it says 20GB storage. Sorry for my ignorance

  32. Don’t mean to re-hash the question, but I’m still unclear on Office 365 Home parameters. I get that I can install the product on up to 5 pc. Here’s what I am not clear on…

    1) What if we have more than 5 pc’s?
    2) I have a Live ID, my 3 family member will soon. Do they login using their own ID’s?
    3) Is there an administrator for the family?
    4) Are we sharing the storage resources or do we each get our own?
    5) If there is no admin, who controls/allocates the resources?
    6) Does each Live ID get to install the product on up to 5 pc’s? (Sort of like qustion #4)
    7) Which Live ID do we use to install office on our various pc’s?
    8) I don’t see a place in Office 365 Home to "Add users", how does this work with my family members? This may be answered by one of the other questions
    9) Is there a rollout schedule to refer to? It’s good to know we get 60 days from the retail release but only if we know or will be informed of that rollout date.
    10) When the 2013 RC was first made available, it was mentioned that all users would need to move there data over to Office 2010 or back it up as everything would be deleted, no distinction was made regarding Office 365 Home and the other products. Will this still be needed?

    We have 4 users with a total of 4 desktops, 4 laptops and a Windows phone all running windows 7 Home Premium with 3 running Office 2010 and 1 (me) using 2010 and 2013.

    Thanks for any clarification you can provide and agaain sorry if these have been answered, It just seems like double talk when I read an official Microsoft post regarding this because they don’t address the particulars of what each family unit may need. Or at least provide options. Thank You.

  33. Hello,
    how much will there be an update from Office 2010 to Office 2013 or will it be a free update?

  34. Offbeatmammal

    so, I currently have an Office365 P1 plan for the family (which I was thinking of switching to as we only use email … though that process doesn’t seem as easy as I’d like, but that’s for another time unless someone has a handy suggestion)

    assuming I stick with the P1 what would an addition of Office for the four users cost, and will I be able to manage it through the same console/subscription? we currently have office2010 licenses but having "cloud" delivery would be much simpler.

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