What Is Microsoft 365? Apps, Features, and Plans Explained

Quick Answer

Microsoft 365 is Microsoft's cloud-based productivity subscription. It includes popular applications such as Word, Excel, PowerPoint, Outlook, Teams, OneNote, and OneDrive. Available in Personal, Family, Basic, and Business plans, Microsoft 365 combines desktop apps, cloud storage, collaboration tools, security features, and AI-powered capabilities through Microsoft Copilot to help users work from virtually anywhere. Previously known as Office 365, the service was renamed Microsoft 365 in 2020. 

Introduction

Whether you are writing a report in Word, analyzing data in Excel, building a presentation in PowerPoint, or collaborating with coworkers through Teams, Microsoft 365 brings all of Microsoft's productivity tools together under a single subscription.

Unlike traditional software that you purchase once and install on a single computer, Microsoft 365 is a subscription service that provides ongoing access to applications, cloud storage, security updates, and new features across multiple devices. That means your apps stay current, your files stay in sync, and you are never stuck on an outdated version.

This guide explains what Microsoft 365 includes, how the plans compare, and how newer tools like Microsoft Copilot, Loop, and Planner fit into the ecosystem. We will also cover which HP laptops pair best with Microsoft 365 so you can get the most out of your subscription from day one. 

What Is Microsoft 365?

Microsoft 365 is a subscription-based productivity platform that combines Microsoft applications, cloud services, and collaboration tools into a single ecosystem.

Instead of purchasing standalone software, you subscribe to Microsoft 365 and receive access to supported applications, cloud storage through OneDrive, and ongoing feature updates. Because Microsoft 365 is cloud-connected, you can access files and applications across multiple devices - Windows PCs, Macs, tablets, and smartphones.

The core Microsoft 365 applications include:

• Microsoft Word - Document creation and editing
• Microsoft Excel - Spreadsheets and data analysis
• Microsoft PowerPoint - Presentations and slide decks
• Microsoft Outlook - Email, calendar, and scheduling
• Microsoft Teams - Messaging, video calls, and collaboration
• Microsoft OneNote - Digital notebooks and note-taking
• Microsoft OneDrive - Cloud file storage and synchronization

Microsoft 365 continues to evolve with new productivity and AI features delivered through regular updates - so the tools you use today will keep getting better without requiring a separate purchase.

What Apps Are Included in Microsoft 365?

The exact applications available depend on your subscription plan, but most Microsoft 365 plans include access to Microsoft's core productivity tools. Here is a closer look at what each one does.

Microsoft Word

Word is Microsoft's document creation and editing application. It is the go-to tool for reports, essays, business documents, resumes, and virtually any written content. Real-time co-authoring lets multiple people edit the same document simultaneously when files are stored in OneDrive. For a deeper look, see our guide: Microsoft Word Best Features and How to Use Them. 

Microsoft Excel

Excel is Microsoft's spreadsheet and data analysis powerhouse. You can create budgets, track expenses, perform calculations, analyze datasets, and build reports. Whether you are managing a household budget or running complex Power Query transformations, Excel scales to fit. For more, see our guide: What Is Microsoft Excel Used For?. 

Microsoft PowerPoint

PowerPoint helps you create presentations for meetings, classrooms, training sessions, and sales pitches. Collaboration features let team members work on different slides in parallel, and Copilot can help generate outlines and speaker notes.  

Microsoft Outlook

Outlook combines email, calendar management, contacts, and scheduling tools in a single application. Shared calendars make team scheduling straightforward, and Focused Inbox keeps your most important messages front and centre. For a closer look, see our guide: How Microsoft Outlook Helps You Manage Email and Calendar. 

Microsoft Teams

Teams provides messaging, video conferencing, file sharing, and collaboration features for both personal and professional use. It replaces the need for separate chat apps, shared drives, and project coordination tools. For a full walkthrough, see our guide: How to Use Microsoft Teams. 

Microsoft OneNote

OneNote is a digital notebook designed for organizing notes, ideas, research, and task lists. It syncs across devices through OneDrive, so your notes are always accessible. 

OneDrive

OneDrive provides cloud storage that allows you to access and synchronize files across devices. Files saved to OneDrive are available from any device with an internet connection, and selective sync lets you control what lives locally on your laptop. For setup help, see our guide: How to Sync OneDrive to Your Computer. 

Microsoft Copilot

Copilot is Microsoft's AI-powered assistant that can help draft content, summarize information, analyze data, and automate common tasks within supported Microsoft 365 applications. We cover Copilot in more detail below. 

Additional Apps and Services

Depending on your plan, Microsoft 365 may also include:

• Microsoft Loop - Real-time collaborative components (tables, checklists, and notes) that sync live across Teams, Outlook, and other Microsoft 365 apps
• Microsoft Planner - Task management and project boards that integrate directly into Teams for assigning tasks, setting due dates, and tracking progress
• Microsoft Designer - AI-powered graphic design
• Microsoft Clipchamp - Video editing
• Microsoft Defender - Security and device protection
• Microsoft Forms - Surveys and quizzes
• Microsoft Family Safety - Parental controls and family features

Availability varies by subscription type and region.

Key Microsoft 365 Features

Microsoft 365 is more than a collection of applications. Its biggest advantage is how those tools work together. 

Automatic Updates

Applications are continuously updated with new features, security improvements, and performance enhancements. You do not need to purchase a new version of Word, Excel, or PowerPoint every few years to stay current. When Microsoft adds a capability - like Copilot integration or a new collaboration feature - it arrives automatically through your subscription. 

Cloud Storage with OneDrive

Most Microsoft 365 subscriptions include OneDrive storage. Files saved to OneDrive can be accessed across multiple devices and automatically synchronized. This allows you to begin work on one device and continue on another without manually transferring files. For most plans, each user receives 1 TB of cloud storage. 

Access Across Multiple Devices

Microsoft 365 supports access across desktops, laptops, tablets, and smartphones. Whether you are working from an office, home, classroom, or while travelling, you can access applications and files using your Microsoft account. This flexibility is especially valuable when paired with a portable HP laptop that you can take anywhere. HP OmniBook laptops are thin, lightweight, and built with the battery life to keep Microsoft 365 running all day. 

Real-Time Collaboration

Multiple people can work on the same document simultaneously. Changes, comments, and edits appear in real time, making collaboration far more efficient than sending multiple versions of files back and forth. For a full walkthrough, see our guide: How to Collaborate on Documents With Microsoft 365. 

Security and Protection

Many Microsoft 365 plans include security tools designed to help protect accounts, files, and devices.

• Features vary by subscription but may include:
• Microsoft Defender
• Ransomware protection
• Identity protection
• Secure cloud storage

AI-Powered Productivity

Microsoft continues integrating AI capabilities throughout Microsoft 365 through Copilot and related tools. These features can help you create content, summarize information, analyze data, and automate repetitive tasks - and they work best on hardware with dedicated AI processing. HP Copilot+ PCs include built-in neural processing units (NPUs) that accelerate Copilot and other AI features locally on the device, delivering faster responses and smoother multitasking. 

Microsoft 365 Plans at a Glance

Microsoft offers several subscription options designed for different types of users.

Microsoft 365 Basic

Microsoft 365 Basic focuses primarily on cloud storage, email, and web-based productivity tools. It includes 100 GB of OneDrive storage, ad-free Outlook email, and the web and mobile versions of Word, Excel, and PowerPoint. It is a cost-effective option for users who do not need desktop applications.

Microsoft 365 Personal

Microsoft 365 Personal is designed for one user who wants access to Microsoft's desktop applications, 1 TB of cloud storage, and productivity services. This plan is often a good fit for students, freelancers, and individual professionals.

Microsoft 365 Family

Microsoft 365 Family extends benefits to up to six users, each with their own Microsoft account, files, settings, and 1 TB of OneDrive storage. It is a popular choice for households where multiple people use Office apps regularly. For a deeper look, see our guide: Is Microsoft 365 Family Worth It?.

Microsoft 365 Business plans

Business plans are designed for organizations and include features focused on collaboration, administration, security, and device management. The right tier depends on whether your team needs desktop apps and how much security your business requires. For a full comparison, see our guide: Microsoft 365 Personal vs. Family vs. Business.

What Is Microsoft Copilot in Microsoft 365?

Microsoft Copilot is Microsoft's AI assistant, integrated into many Microsoft 365 experiences. Depending on the application, Copilot can assist with a variety of tasks.

In Microsoft Word

Copilot can draft content, rewrite passages, summarize documents, and generate outlines - giving you a starting point instead of a blank page.

In Microsoft Excel

Copilot can analyze datasets, generate formulas, identify trends, and create visualizations - turning raw numbers into actionable insights faster.

In Microsoft PowerPoint

Copilot can create presentation outlines, generate slides, draft speaker notes, and organize content - helping you build a polished deck in a fraction of the time.

In Outlook and Teams

Copilot can summarize email threads, draft responses, recap meetings, and identify action items - keeping you on top of communication without reading every message.

For a deeper look at what Copilot can do across the suite, see our guide: What Microsoft Copilot Can Do in Word, Excel, and PowerPoint.

Copilot in Microsoft 365 vs. Copilot+ PC

It is important to note that Copilot in Microsoft 365 is a software feature, while a Copilot+ PC refers to a category of Windows hardware equipped with a dedicated NPU for local AI processing. Although related, they are separate products. Using Microsoft 365 Copilot on a Copilot+ PC - such as an HP Copilot+ PC - delivers faster AI responses and smoother performance because AI tasks are accelerated locally on the device.

Microsoft 365 vs. Office 2024

One of the most common questions is whether Microsoft 365 and Office 2024 are the same product. They are not.

Microsoft 365

Microsoft 365 is a subscription service that includes ongoing feature updates, OneDrive cloud storage, collaboration tools, AI-powered features through Copilot, and access across multiple devices.

Office 2024

Office 2024 is a one-time software purchase that provides perpetual access to traditional Office applications on a supported device. While Office 2024 receives security updates, it does not receive the same continuous feature additions available through Microsoft 365 subscriptions.

Users who prioritize cloud services, collaboration, and AI features often find Microsoft 365 to be the more flexible option. For a full comparison, see our guide: Microsoft 365 vs. Microsoft Office.

HP Laptops That Make the Most of Microsoft 365

Microsoft 365 is cloud-connected, AI-powered, and built for collaboration - and the right laptop ensures you get the full value from your subscription. Here are a few HP laptops worth considering:

HP OmniBook 5 - A thin, lightweight laptop with outstanding battery life and seamless OneDrive connectivity. Available in Snapdragon, Intel, and AMD configurations, with qualifying Snapdragon models meeting Copilot+ PC requirements. Ideal for students and everyday productivity users who need a laptop that keeps up from the classroom to the coffee shop to the home office. 

HP EliteBook line - Enterprise-grade laptops with HP Wolf Security, high-definition webcams, and noise-reducing microphones. A strong choice for business teams that use Microsoft 365 Business Standard or Premium alongside Teams for daily communication.

HP Copilot+ PCs - Laptops with built-in NPUs that accelerate Microsoft Copilot and other AI features locally on the device. If you plan to use Copilot in Word, Excel, PowerPoint, Teams, or Outlook, an NPU-equipped HP laptop delivers noticeably faster AI performance.

For a full comparison, read our guide: Best HP Laptops for Microsoft 365.

Frequently Asked Questions

Is Microsoft 365 free?

Microsoft 365 is a paid subscription service. However, Microsoft offers free web-based versions of Word, Excel, and PowerPoint through a Microsoft account with limited functionality.

What is the difference between Microsoft 365 Personal and Family?

Microsoft 365 Personal is designed for one user. Microsoft 365 Family allows multiple users to have their own accounts, files, and cloud storage under a shared subscription.

Is Office 365 the same as Microsoft 365?

Yes. Microsoft renamed Office 365 to Microsoft 365 in 2020. While the name changed, many people still use the older term when referring to Microsoft's productivity subscription.

Does Microsoft 365 include Word, Excel, and PowerPoint?

Yes. Microsoft 365 Personal and Family subscriptions include desktop versions of Word, Excel, and PowerPoint, while some lower-cost plans may provide web-based access only.

Do I need Microsoft 365 to use Word?

No. Word is also available through Office 2024 and as a limited free web application. However, Microsoft 365 provides the most complete feature set and ongoing updates.

Conclusion

Microsoft 365 combines Microsoft's most popular productivity applications, cloud storage, collaboration tools, and AI-powered capabilities into a single subscription. Whether you are a student managing coursework, a professional collaborating with coworkers, or a business supporting an entire team, Microsoft 365 offers flexible plans designed for different needs.

Because applications, files, and settings stay synchronized across devices, Microsoft 365 helps you remain productive wherever work happens. Pairing your subscription with the right hardware makes the experience even better. An HP OmniBook gives you lightweight portability and all-day battery life. An HP EliteBook adds enterprise-grade security through HP Wolf Security. And an HP Copilot+ PC with a built-in NPU ensures Microsoft Copilot runs at its fastest - so your AI-powered productivity tools are as responsive as the rest of your workflow.

For current plans and pricing, visit Microsoft 365.