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Microsoft Office, used globally by over 1.5 billion people, is one of the most popular software suites. For nearly thirty years, tools like Microsoft Word, Excel, PowerPoint, Outlook, and Skype have been a staple for computer users.
Today, many businesses depend on these tools for daily communication, creating documents, and managing finances. With the introduction of Office 365, there’s even more to explore in this suite.
If you’re interested in using Office in the cloud or want to learn more about these widely used but sometimes overlooked tools, keep reading. We’re covering the basics and answering common questions about Office 365 in this guide.
Table of Contents
What is Office 365?
Office 365, released in 2001, is a cloud-based version of the renowned Microsoft Office suite, available through a subscription model. It includes essential applications like Word, Excel, PowerPoint, Outlook, OneNote, and varies additional apps and services like Publisher, Planner, OneDrive, Exchange, SharePoint, Access, Skype, Yammer, and Microsoft Teams, depending on the chosen plan.
The suite offers various packages tailored for individual users, families, students, businesses, nonprofits, and educational institutions. Additionally, Office 365 provides Office Online and mobile versions, offering free, limited-feature versions of its applications.
This guide primarily focuses on Microsoft 365 for Business.
Key Differences Between Office 365 vs Previous Versions Office 365
Office 365 currently operates on a subscription basis. Instead of purchasing the suite for a one-time cost, users pay a monthly fee for access. This model ensures subscribers always have the latest updates, as Microsoft continuously updates the platform.
Unlike traditional, one-time purchase versions, Office 365 emphasizes cloud usage, though some plans offer desktop app versions. It’s designed for online use, with all applications, services, and data hosted on Microsoft’s servers, eliminating the need for users to install software or maintain hardware.
Office 365 also includes features like email hosting and cloud storage, allowing access to files anytime, anywhere via the internet. Its cloud-based nature introduces several features not found in previous versions.
Microsoft 365 for Business Users
Microsoft Office, a staple in productivity tools for over three decades, is used by over a billion people worldwide. For businesses, it’s more than just word processing and spreadsheets; Office has evolved into a comprehensive suite of intelligent tools, boosting productivity and efficiency.
Office 365 offers various plans, making it accessible for businesses of all sizes. Tools like Outlook provide a professional platform for brand recognition and marketing. Its extensive calendaring features aid in collaboration and time management.
Office 365’s interconnected apps and services enhance teamwork, allowing for efficient communication, file sharing, and project management.
Cloud storage and mobile app integration enable work from anywhere. For many businesses, Office 365’s robust security measures and consistent service are key reasons for choosing the suite.
How to grow your business with Office 365?
Office 365’s suite of productivity tools significantly enhances organizational efficiency, streamlining tasks like information search, knowledge sharing, communication, data processing, and planning. This efficiency reduces time spent on administrative tasks, freeing up time for innovation and business advancement.
Newly added apps provide even more tools for growth, including Microsoft Connections for email marketing, Microsoft Listings for managing online business information, Microsoft Invoicing for creating and sending invoices, Outlook Customer Manager for customer relationship management, Microsoft Bookings for appointment scheduling, and MileIQ for mileage logging.
Latest apps released by Office365 for Business
- Microsoft Bookings: Allows for efficient management of customer appointments and schedules.
- Microsoft Connections: A basic tool for email marketing and customer engagement.
- Microsoft Invoicing: Enables the creation and sending of professional invoices, with capabilities for accepting payments on the go.
- Microsoft Listings: Assists in managing business information across platforms like Facebook, Google, and Bing.
- Outlook Customer Manager: A straightforward customer management tool for businesses not requiring a full CRM system.
Office 365’s cloud-hosted nature not only offers cost-effectiveness and flexibility, but also eliminates the need for hardware investment, potentially reducing internal IT costs.
What’s the difference between Google’s Gmail and Microsoft’s Office 365 for Business?
While Microsoft has long led the productivity software market, the rise of cloud computing has introduced competition, particularly from Google’s G Suite.
Though traditional Office alternatives haven’t transitioned to cloud-based suites, G Suite emerges as a strong contender against Office 365. G Suite offers a free version with basic app functionalities and paid versions for businesses of all sizes, similar to Office 365. It includes business email addresses, messaging, security controls, video calls, and support.
The subscription levels range from $5 to $25 per user monthly, simpler than Office 365’s multi-tiered structure.
While entry-level Office 365 subscriptions typically offer more features than G Suite’s, both are comparable at mid-level plans. Key differences include Microsoft’s richer feature set and the inclusion of desktop app versions in most Office 365 plans, whereas G Suite is exclusively cloud-based.
Is Office 365 the same as Microsoft 365?
Microsoft 365, introduced in mid-2017, is often confused with Office 365 and Microsoft Dynamics 365, but they are distinct offerings.
Microsoft 365 is a comprehensive package that includes Office 365, Windows 10 Enterprise, and Enterprise Mobility + Security (EMS), providing a complete set of tools for managing IT infrastructure, securing business operations, and enhancing productivity.
While it’s possible to subscribe to Office 365 separately, Microsoft 365 users automatically have access to Office 365. Microsoft 365 is designed to offer businesses the essential tools for running their IT environment, including features like email, calendaring, file storage, data protection, threat protection, and a high uptime guarantee.
Businesses may find Microsoft 365 a convenient and cost-effective option, particularly if they aren’t already using Microsoft’s business services.
What apps and services are included in Office 365 for Business?
Here’s a complete list of all the core apps and services included in Office 365 for Business:
- Excel: A powerful tool for data analysis and spreadsheet management.
- Exchange: Microsoft’s email server solution, integral for email management.
- Microsoft Teams: A collaboration platform combining chat, meetings, and file collaboration.
- OneDrive for Business: Cloud storage service for secure file storage and sharing.
- OneNote: A digital notebook for information gathering and multi-user collaboration.
- Outlook: Email client software for managing emails, calendars, contacts, and tasks.
- PowerPoint: Software for creating dynamic and visually compelling presentations.
- Publisher: A desktop publishing application for creating brochures, flyers, and newsletters.
- SharePoint: A web-based collaborative platform for document management and storage.
- Skype for Business: A telecommunications tool for messaging, video conferencing, and collaboration.
- Word: A word processing application for creating and editing text documents.
Each of these applications may offer mobile versions, enhancing productivity on-the-go, and are part of the comprehensive suite provided by Office 365 for Business.
What is Microsoft Exchange?
Microsoft Exchange is the backbone of Microsoft’s email solutions, primarily functioning as an email server. It supports email clients like Outlook by managing all email-related activities, including:
- Email Processing: Handles incoming and outgoing emails.
- Task Management: Assists in organizing and tracking tasks.
- Contact Organization: Keeps contacts systematically arranged.
- Calendar Management: Facilitates scheduling and calendar sharing.
Exchange enables organizations to establish their own independent mail systems, providing a robust and secure platform for email communication.
What is Microsoft Graph?
Microsoft Graph is an advanced API (Application Programming Interface) that links the various apps and services under the Microsoft 365 umbrella. It acts as a digital switchboard, connecting data across different applications. Key functionalities include:
- Data Integration: Allows seamless sharing of data among Microsoft 365 apps like Office 365, Windows 10, and EMS.
- User Connectivity: Connects users, emails, calendars, tasks, and devices within the Microsoft ecosystem.
- Contextual Data Access: Helps users find relevant information across Microsoft 365 services.
- App Development Support: Enables developers to create custom apps and workflows using Microsoft 365 data.
Microsoft Graph plays a crucial role in maximizing the utility of data generated within Microsoft 365 by facilitating its use across various applications.
What is Microsoft Teams?
Microsoft Teams is a chat-based workspace designed to enhance collaboration and efficiency within organizations. It focuses on three main functionalities:
- Chat: Offers robust chat capabilities, facilitating quick and easy communication among team members.
- Project Management: Provides tools for managing projects, sharing documents, and collaborating effectively.
- Integration with Office 365: Teams integrates deeply with Office 365 apps, bringing together various collaboration tools and features.
Originally a chat-focused platform, Teams is evolving to include more of Skype’s functionalities. Microsoft encourages using Teams alongside Skype for a smoother transition and better adoption in the future.”
What is OneDrive?
OneDrive, Microsoft’s cloud-based storage service, allows for secure storage and access of various file types, including documents, images, music, and videos. It’s accessible from virtually any device with internet connectivity.
Key aspects of OneDrive include:
- Versatile File Storage: Store a wide range of file types securely in the cloud.
- Accessibility: Access files from any device, anywhere, provided there’s internet access.
- Integration with Office 365: Seamless connection with other Office 365 applications.
- Generous Storage Space: Business and enterprise-level users receive 1TB of storage, with unlimited storage for certain plans.
- Standalone Option: Available as a separate service, not just part of Office 365 plans.
OneDrive for Business is particularly popular among Fortune 500 companies and can be implemented in various configurations, including public cloud, hybrid (with SharePoint 2016), or on-premise (with SharePoint 2013 or 2016).”
What is Microsoft SharePoint?
SharePoint, launched in 2001, is a versatile web-based platform that integrates with Microsoft Office. It serves primarily as a system for document management and storage, but its functionality can be tailored to various organizational needs.
SharePoint Online, included in many Office 365 plans, is a cloud-based service for businesses of all sizes, allowing them to create sites for document sharing and collaboration.
Key features of SharePoint include:
- Document Management: Create, edit, manage, and share documents within the organization.
- Team Collaboration: Use task lists, calendars, and document libraries to keep teams coordinated.
- Internal Communication: Share news, updates, and events company-wide.
- Data Protection: Control access to content with document-level permissions.
- Offline Access: Download documents for offline use with SharePoint Workspace.
- Real-Time Communication: Engage in direct communication with colleagues within SharePoint Online.
All Office 365 plans, except for Office 365 Business and Office 365 Pro+, include SharePoint Online.
What is Skype for Business?
Skype for Business is a specialized version of the popular communication platform, tailored for commercial use. It extends the capabilities of regular Skype, offering features essential for business operations, such as:
- Instant Messaging: Quick and efficient messaging between colleagues.
- Video Conferencing: High-definition video meetings for improved collaboration.
- Meeting Recording: Capability to record conversations for later reference.
- Screen Sharing: Share screens during meetings for more interactive discussions.
- Large Meeting Capacity: Host meetings with up to 250 participants.
- Integration with Office 365: Seamlessly works with other Office 365 applications for cohesive communication.
Skype for Business builds upon the features of Microsoft Lync, its predecessor, and is integrated into the Office 365 suite for comprehensive communication solutions within organizations.
What is Yammer?
Yammer is a unique enterprise social network designed to facilitate communication across an organization. It serves as a digital space for employees to connect and share information, akin to a company-wide message board. Key features of Yammer include:
- Organization-Wide Communication: Enables sharing of news, announcements, and updates across the entire company.
- Cross-Departmental Messaging: Facilitates dialogue and information exchange between different departments.
- Community Building: Helps in creating a sense of community among employees.
While Yammer is similar to Teams in fostering collaboration, it differs in its focus on broader, organization-wide engagement rather than close-knit project teamwork.
What are the pricing & plans for Microsoft 365?
Businesses seeking to integrate with Microsoft 365, formerly known as Office 365, there are two licensing models to choose from. For companies with fewer than 300 users, there are three Microsoft 365 for Business plans available.
- Microsoft 365 for Business: Suitable for companies with fewer than 300 users, offering three distinct plans.
- Office 365 for Enterprise: Designed for larger companies, supporting unlimited users with four different plans.
On the other hand, larger enterprises can select from four Microsoft 365 for Enterprise plans, each supporting an unlimited number of users. These license types can be combined to best meet the specific requirements of the business.
It’s important to note that while the product is now branded as Microsoft 365 for business users, it remains available as Office 365 for enterprise clients.
Microsoft 365 for Business | Plans & Pricing
Microsoft 365 Business Basic
1-month free trial
- Secure cloud services: Microsoft Teams, OneDrive, SharePoint, Exchange
- Web and mobile apps only: Word, Excel, PowerPoint, Outlook
- Chat, call, meet up to 300 attendees
- Web and mobile versions of Word, Excel, PowerPoint, and Outlook only
- 1 TB of cloud storage per user
- 24/7 phone and web support
Microsoft 365 Business Standard
1-month free trial
Everything in Business Basic, plus:
- Desktop versions of Word, Excel, PowerPoint, and Outlook
- Ability to host webinars
- Attendee registration and reporting tools
- Tools to create personalized documents and professional layouts
Microsoft 365 Business Premium
1-month free trial
Everything in Business Standard, plus:
- Advanced security
- Access and data control
- Cyberthreat protection
Additional apps / cloud services:
- Intune, Azure Information Protection, Publisher (PC only), Access (PC only)
Microsoft 365 for Enterprise | Plans & Pricing
Microsoft 365 E3
1-month free trial + requires an annual commitment
- Microsoft 365 apps for mobile and desktop
- Chat, meetings, and file sharing within shared workspaces
- Windows for Enterprise
- 1 TB of cloud storage per user
- Core security and identity management capabilities
- Apps & services included: Word, Excel, PowerPoint, Outlook, Microsoft Teams, Exchange, SharePoint, OneNote, OneDrive, Microsoft Stream, Microsoft Bookings, Microsoft Publisher (PC only), Microsoft Access (PC only), Viva Connections, Viva Engage, Viva Insights, Microsoft Lists, Microsoft Forms, Sway, Visio, PowerApps, Power Automate, Power Virtual Agents, Microsoft Planner, Microsoft To Do, Microsoft Loop, Clipchamp
Microsoft 365 E5
Requires an annual commitment
Everything in Microsoft 365 E3, plus:
- Audio conferencing for up to 1,000 attendees
- Scalable business analytics with Power BI
- Advanced security and compliance capabilities
- Additional Apps: Power BI Pro
Office 365 for Enterprise | Plans & Pricing
Office 365 E1
Free trial
- Email, file storage and sharing, meetings, and instant messaging
- 1 TB of cloud storage per user
- Audio conferencing for up to 1,000 attendees
- 24/7 phone and web support
- Apps & services included: Word, Excel, PowerPoint, Outlook, Microsoft Teams, Exchange, SharePoint, OneNote, OneDrive, Viva Connections, Viva Engage, Viva Insights, Microsoft Bookings, Delve Microsoft Stream, Sway, Microsoft Forms, PowerApps, Power Automate, Power Virtual Agents, Microsoft Planner, Microsoft To Do
Office 365 E3
Free trial
Everything in Business Basic, plus:
- Install Microsoft 365 Apps on up to five PCs or Macs, five tablets, and five mobile devices per user
- Message encryption
- Rights management
- Data loss prevention for email and files
Additional apps / cloud services:
- Publisher (PC only), Access (PC only)
Office 365 E5
Free trial
Everything in Business Standard, plus:
- Advanced security
- Call control and PBX capabilities in the cloud
- Scalable business analytics with Power BI
Additional apps / cloud services:
- Power BI Pro
Can I get a discount for Microsoft 365?
Businesses can mix and ma
tch license types to best suit their specific needs, providing flexibility in terms of features and scale.
The pricing for Office 365 for Business varies based on the chosen plan and the number of licenses. Businesses with more than 250 licenses often qualify for discounts through volume licensing. Key points regarding pricing include:
- Discounts for Large Enterprises: Significant discounts are available for enterprise agreement customers, typically those needing 250 or more licenses.
- Special Pricing for Educational Institutions and Nonprofits: Educational institutions and nonprofits benefit from reduced pricing. Nonprofits, for instance, can access Office 365 Nonprofit Business Essentials at a donation rate, and Business Premium at a significantly lower cost than standard pricing.
- Free Access for Education: Office 365 Education, with tools like Word, Excel, and Microsoft Teams, is offered for free to eligible academic institutions.
How to deploy and implement Microsoft 365 for Business?
Deploying Microsoft 365 for Business involves a straightforward process, primarily managed online due to its cloud-based nature. Here’s a fey things to consider:
- Cloud-Hosted Suite: Most services are accessed via the web, with Microsoft hosting the suite rather than using in-house servers.
- Internet Requirement: A stable internet connection is essential for implementing and accessing Office 365’s cloud services.
- Optional Desktop Apps: Some plans include downloadable desktop versions of Office apps, allowing offline work.
- Data Synchronization: Offline work in desktop apps is automatically synced once reconnected to the internet.
- Legacy Data Migration: For businesses with substantial existing data, migrating this information to Office 365 can be a critical part of the implementation process. This may include transferring emails, contacts, calendars, and documents.
- Custom Configuration: Depending on the specific business needs, configuring services like Enterprise Mobility and Security (EMS), Skype, and Yammer can be integral to the deployment.
- User Training and Adoption: To ensure a smooth transition, businesses may need to provide training for their employees to familiarize them with the new system and its capabilities. This is essential for maximizing the benefits of Office 365.
- Consultation and Planning: Working with Office 365 implementation partners can be beneficial. These experts can assist in aligning the Office 365 setup with the business’s specific needs and processes.
- Security Configuration: Setting up and customizing security features within Office 365 is important to protect sensitive business data and comply with industry regulations.
- FastTrack Deployment: For businesses purchasing more than 50 licenses, Microsoft offers FastTrack, a service providing remote assistance with deployment, data migration, and user adoption. It’s a valuable resource for larger scale deployments.
Overall, the implementation time is generally quick due to Microsoft’s cloud infrastructure, but businesses migrating large amounts of legacy data may need additional time for a smooth transition.
Is Microsoft Office 365 Compatible with Previous Office Versions?
Microsoft Office 365 is designed to work alongside various versions of Microsoft Office, ensuring flexibility for users with existing Office installations. Key compatibility aspects include:
- Optimal Performance with Latest Versions: Office 365 functions best with the latest version of Office, specifically Office 2016, offering full feature compatibility and seamless integration.
- Support for Older Versions: It also works with Office 2013 and Office 2011 for Mac, although with potentially reduced functionality.
- Limited Functionality with Much Older Versions: Users of Office 2010 and Office 2007 can access Office 365, but they may experience further reduced features and compatibility issues.
- Update Frequency: Subscribers to Office 365 receive continuous updates, ensuring they always have the latest features and security improvements. This contrasts with the traditional one-time purchase versions of Office, which don’t receive the same level of ongoing updates.
- Cloud Features Access: Using Office 365 with older versions of Office might limit access to some cloud-based features, which are optimized for the latest version of Office.
- Licensing Considerations: Businesses transitioning to Office 365 should review their current licensing agreements to understand how the shift might affect their licensing strategy and costs.
- Data Migration: Depending on the age of the existing Office suite, migrating data to Office 365 might require additional steps or considerations to ensure compatibility and data integrity.
2024 Market Trends for Microsoft 365 Business
As of 2022, Microsoft 365, which includes Office 365, has shown significant usage and market presence. With about 28,750,000 monthly users and 39,930 users every hour, it’s clear that the suite is widely utilized. Microsoft 365 also boasts a substantial number of mobile app downloads, with over 500 million on Android and over 376,000 on iOS. In terms of market share, Microsoft Office 365 holds approximately 47.9% in the cloud service industry.
The suite is predominantly used in various industries, with construction (6%) leading, followed by sectors like information technology and retail. Geographically, the United States represents the largest user base, accounting for 34% of the total customers, followed by the United Kingdom at 8%. Other notable users come from countries like Australia, Canada, Germany, and the Netherlands.
In terms of business features, Office 365 offers a comprehensive set of tools and applications tailored for business needs. This includes standard productivity applications like Word, Excel, PowerPoint, and Outlook, as well as 1TB of OneDrive storage for each user, business-class email hosting with a 50GB mailbox, and Skype for Business for communication and collaboration. The suite’s capability for professional digital storytelling, project organization, and its 99.9% uptime guarantee further enhance its appeal for businesses.
These insights reflect the substantial and growing influence of Office 365 in the business software market, highlighting its importance as a tool for productivity and collaboration in various sectors and regions globally (SignHouse, ConsumersAdvocate.org).
What kind of career can I have as a Microsoft 365 Expert?
Career Opportunities with Office 365 The widespread adoption of Office 365 has created a range of career opportunities for IT professionals. Some key roles include:
- Office 365 Consultant: They provide pre- and post-sales consultancy, helping businesses prepare for and transition to Office 365. This role involves requirement gathering, creating implementation roadmaps, and liaising with IT managers and directors.
- Office 365 Architect: Responsible for planning and implementing technical solutions, ensuring the end user’s vision of Office 365 is realized through effective migration and configuration.
- Office 365 Systems Administrator/Support Engineer/Analyst: These roles focus on the regular support and maintenance of Office 365 within an organization. Responsibilities include managing updates, optimizing performance, and providing expert-level troubleshooting.
- Unified Communications Engineer: This role involves maintaining the digital and telecommunications aspects of Office 365, particularly focusing on tools like Lync/Skype for Business, Exchange, and Active Directory.
The Microsoft 365 ecosystem offers diverse opportunities for professionals to specialize in various aspects of cloud-based productivity tools.
What certifications do I need to get a Microsoft 365 job?
As of 2024, Microsoft offers several updated certifications for professionals looking to specialize in Microsoft 365. Five key certifications that are particularly relevant include:
- Microsoft 365 Certified: Fundamentals: This certification is ideal for those starting in cloud services or who want to demonstrate foundational knowledge of cloud services, especially Microsoft 365’s offerings. It focuses on understanding cloud concepts, Microsoft 365 services, and the basics of Software as a Service (SaaS) cloud models.
- Microsoft 365 Certified: Administrator Expert: This expert-level certification is for those who have already obtained an associate-level certification in Microsoft 365. It covers skills like deploying and managing a Microsoft 365 tenant, managing security, and compliance with Microsoft Purview.
- Microsoft 365 Certified: Endpoint Administrator Associate: Targeted at those responsible for managing devices and client applications in a Microsoft 365 environment, this certification covers endpoint management, security, and compliance. It is ideal for administrators who want to focus on endpoint solutions in Microsoft 365.
- Microsoft 365 Certified: Messaging Administrator Associate: This certification is for professionals specializing in Microsoft 365’s messaging capabilities, particularly with Exchange Online. It is an ideal certification for those managing a secure and effective email collaboration platform.
- Microsoft 365 Certified: Teams Administrator Associate: Geared towards those managing Microsoft Teams, this certification focuses on configuring, deploying, and managing Office 365 workloads for Teams, ensuring efficient and effective collaboration within an enterprise environment.
These certifications reflect the latest in Microsoft technologies and are designed to meet the evolving needs of businesses and IT professionals in the cloud and productivity space. They provide a structured path for professionals to develop and showcase their skills in managing and deploying Microsoft 365 solutions.
How much does Microsoft 365 Certification cost?
The MS-900: Microsoft 365 Fundamentals exam is priced based on the region where the exam is proctored. In the United States, the cost for this exam is typically around $99 USD.
To find the exact pricing for these exams in your region, it’s recommended to check directly with the exam provider or on the official Microsoft certification webpage. This will provide you with the most accurate and up-to-date information on the exam costs in your specific location.
Is Microsoft 365 Secure?
Microsoft 365 offers a robust set of security features that are suitable for most business needs. However, it’s essential for organizations to also focus on training employees in security best practices and to implement policies and procedures that complement Microsoft’s security measures. Regular audits and updates are necessary to maintain a secure environment.
Security Features of Microsoft 365:
- Data Encryption: Microsoft 365 encrypts data both at rest and in transit. This means that data stored on Microsoft’s servers and data being transmitted over the internet are encrypted using strong encryption protocols.
- Multi-Factor Authentication (MFA): This adds an extra layer of security by requiring two or more verification methods to access an account, such as a password and a phone notification.
- Advanced Threat Protection (ATP): ATP helps protect against sophisticated threats like phishing and zero-day malware.
- Data Loss Prevention (DLP): DLP policies help identify and protect sensitive information across Microsoft 365 applications.
- Compliance Standards: Microsoft 365 complies with various global and regional compliance standards, such as GDPR, HIPAA, and ISO 27001, which mandate certain levels of security and privacy protection.
Potential Security Concerns:
- User Error: The biggest risk often comes from the users themselves. Poor password practices, sharing of credentials, and falling for phishing scams can undermine security measures.
- Insider Threats: Employees or contractors with access to company data pose a risk if they misuse their access rights, intentionally or accidentally.
- Dependence on Internet Connectivity: Being a cloud-based service, Microsoft 365’s accessibility is contingent on internet availability. Any disruption in internet service can impact access to the suite.
- Software Vulnerabilities: Like any software, Microsoft 365 could potentially have vulnerabilities that might be exploited by hackers. However, Microsoft regularly releases updates and patches to address such issues.
Recommendation
For an organization considering Microsoft 365, it would be wise to:
- Regularly review and update security settings and policies.
- Train staff on security awareness, especially regarding phishing and password management.
- Implement and enforce strong authentication methods like MFA.
- Stay updated with Microsoft’s security advisories and updates.
Finally, the security of any cloud service, including Microsoft 365, is a shared responsibility. While Microsoft provides a secure platform, users must also play their part in maintaining security.