What's the difference between Outlook.com Premium and Office365 Business Essentials?

Question

Microsoft has recently unveiled Outlook.com Premium, a service that (once again) allows you to use a custom domain with outlook.com. The introductory price is $19.95/year, regular $49.99.

This seems to offer very similar functionality to Office 365 Business Essentials which also allows for a custom domain; standard pricing is $60/year (or $6/month).

I appears that the most significant difference, beyond the $10/year difference, is that up to five users can have accounts with the custom domain at Outlook.com Premium while each new Office 365 Business Essentials account is an additional $50/year. Of course, each Office 365 account includes 1 TB of OneDrive for Business storage.

Answer 1

Since Office 365 includes 1TB of storage, that has to be included to make an apples-to-apples comparison. For a small (up to five) users, the trade-off between Outlook.com Premium and Office 365 is mostly just price (unless you want a lot of Office 365 features).

OneDrive offers two pricing plans, both including 1 TB of storage: $70 for one user, or $100 for up to five users (1 TB each).

Number of Users

1. Office 365, $60; Outlook+OneDrive, $50+$70=$120 ($90 introductory)
2. Office 365, $120; Outlook+OneDrive, $50+$100=$150 ($120 introductory)
3. Office 365, $180; Outlook+OneDrive, $150
4. Office 365, $240; Outlook+OneDrive, $150
5. Office 365, $300; Outlook+OneDrive, $150
6. Office 365, $360; Outlook+OneDrive, not available