What is the difference between on-premise and cloud?
If you opt for the Microsoft 365 subscription model, the apps (e.g. Word, PowerPoint and Excel) are not stored locally on your PC or notebook, but are available to you in the Microsoft cloud. This means that you need to be permanently connected to the internet in order to work with the Office programmes. You can access your apps and files (which are also stored in the cloud) with any internet-enabled device and your personal login details. However, if you do not have an internet connection for more than 31 days, you will no longer be able to edit, read or print your files - and only for a maximum of 180 days.
With the on-premise version, you install the programmes on your PC or another end device and can start them locally as required. You therefore do not need a permanent internet connection for this model and can also work offline. Although the costs for an on-premise Office licence are higher than the monthly subscription fees, you acquire a permanent right of use. Microsoft also guarantees you at least five years of support for Office 2021, for example. During this period, you are entitled to free function and security updates. After that, you can either continue to use your licensed software free of charge or sell the licence for Office again to save costs.