Resource - Par Habibou M'baye, le 12 Feb 2025

Office 365 or on-premise Office 2016/2019 license?

Software license management and versioning in companies is often a real headache, especially for tools as essential and transversal as office suites. Microsoft, the undisputed leader in this segment, has successfully established its office suite as a market standard, evolving it over versions to adapt to new needs and usages. The latest, technologically advanced versions offer an increasingly connected, collaborative, and smooth user experience, marked by a strong commitment from the publisher to cloud technologies with the on-demand Microsoft 365 license (formerly known as Office 365) and the continuation of perpetual versions with on-premise Office 2016 and 2019 licenses.


While the publisher's stated intention is to prioritize SaaS versions with subscriptions, the choice for IT managers using office suites must remain open, allowing each to select solutions based on their functional needs. IT managers can thus build an optimized architecture in a hybrid or perpetual mode, aligned with IT objectives in terms of usage, projects, and financial investment.


On-premise vs on-demand, which version to choose?

Not too long ago, the question of choosing between an on-premise version and a subscription with the Microsoft 365 version was not as pressing. In a commoditized sector like office suites, IT managers used to deploy software versions based on the environment and hardware compatibility. Depending on the age of the equipment, it was common to see Office 2013, 2016, 2019, and 365 versions coexisting. The current urgency compels a redefinition of processes and a search for technological and economic balance to meet users' functional needs and investment control.


By implementing an asset management strategy, IT managers regain control over software publishers. They take advantage of opportunities offered by the secondary market for on-premise used licenses through the Softcorner marketplace to pursue their own technological investment goals and avoid being subject to publishers' roadmaps. The range of solutions on the used on-premise software license market allows IT managers to choose versions suited to each service's use and provide each employee with the necessary tools according to their profile. They can complement their on-premise software architecture with on-demand Microsoft 365 licenses for more specific profiles and configurations. Given the planned price increases for the cloud version in March 2022, IT managers have every reason to update their on-demand office software asset management in light of these financial elements.   

From a functional perspective, Office 365 or Office 2016/2019?

IT managers' choice will first be conditioned by the functional coverage offered by the different on-premise Office 2016/2019 and on-demand Office 365 versions. The notable differences between perpetual license versions (on-premise) and subscription-based ones (on-demand) lie in the frequency of updates and the addition of new features. According to the publisher's announcements, Office 2019 is the last on-premise version, with updates mainly consisting of security updates and patches. From a functional perspective, the on-demand Office 365 version offers the same essential functions and applications as Office 2016 and 2019 solutions, with additional advanced collaborative features linked to their cloud environment.

Considering the cost of on-demand licenses and the obligation to update computers (desktops, laptops) to meet the prerequisites of the on-demand Office 365 version, the possibility of purchasing on-premise Office 2016 or 2019 licenses on the Softcorner marketplace is a real boon for companies. Thanks to the secondary software license market, they can rationalize their IT investments while maintaining a quality software offering for the company's employees.      

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