If you’re confused by the three versions of Microsoft Office that are available this year, technology editor Dave Johnson has a simple explanation of each to help you out.
Office 2013. This is the traditional way to get your Office software. It comes on a disc or as a download and you load it onto your computer. It’s only good for one computer and comes at different prices for different groups of programs.
Office 365 Premium. Instead of owning the software, you download it onto your computer and pay as a monthly or annual subscription. If you stop paying, you still have access to the documents you created with it, but the software won’t work anymore.
Office 365 Home Premium. For $10 a month or $100 a year, you can install this version on up to five PC or Mac computers. You get all of the components in Office 2013 Professional, as well as 60 minutes of Skype calls a month and 20GB of SkyDrive storage.
— Adapted from “Making sense of the new Microsoft Office offerings,” Dave Johnson, CBS MoneyWatch.