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There's been a lot of hype about, and you might be considering it for yourself, your clients, or your organization. Office 365 is Microsoft's cloud version of Office. You'll connect via the internet, set up an account, make payment, download the appropriate files, and go to work. There are no installation discs.

If you decide that Office 365 might be the right step for your organization, be sure to read by Brien Posey. IT consultants will probably know all of the technical points in this article, but you might find some new arguments both for and against moving to Office 365. What's the cloud? The cloud is an industry term for an off-site file hosting service.

When working with Office 365 files, you upload and synchronize files with Windows SkyDrive (Microsoft's cloud). If you want to access files from different locations or devices that don't have Office, this works to your advantage. You can also store files locally; your files belong to you. SEE: (Tech Pro Research) 2. The three faces of Office.

Office 365 is a subscription-based plan that offers Office functionality in the cloud. It's a hybrid (of sorts) between the desktop version and the free web apps. Excuse the marketing hype, but Office 365 offers desktop functionality with web-based convenience supporting multiple devices.

That last part is what matters to users and clients. What you'll need Office 365 requires Windows 7 or 8. Mac users need OS X 10.6 (or later). You'll also need Internet access to install Office 365 and to activate and manage your subscription (once a month). You'll need a compatible browser. IE 9, Firefox 12, Safari 5, or Chrome 18.

Regarding hardware, at the very least, your local system will need the following. • 1 GHz processor or Intel processor (for Macs). • 1 GB or RAM (32-bit); 2 GB RAM (64-bit). • 3 GB of available hard disk space; 2.5 GB for Macs.

When I say at the very least, I mean that Office 365 will run, but it will be slow (really slow. Really, really slow). Users with older systems might face significant upgrade costs before they can move to Office 365.

The subscription costs A small business with 25 or fewer users can purchase Office 365 Small Business. If you pay by the year, you'll pay $5, payable in an annual fee of $60 (per user). If you prefer to pay as you go, you'll pay $6 a user per month. Small Business Premium includes the desktop version of all the Office apps, for $150 a year per user.

If you have more than 25 users, opt for one of the Enterprise versions from $8 to $24 per user (monthly). In a nutshell. • Small Business accommodates up to 25 users. • Midsize Business accommodates up to 300 users. • Enterprise for over 300 users. Home Premium is available for $9.99 a month ($99.99 a year). You can work with five pcs or Macs, and five mobile devices.

Android devices and iPhones will need Office Mobile. Windows Phone comes with Office Mobile and it doesn't count toward the five-device limit. What you'll get The apps you get depend on your subscription choice. Most PC plans include Word, Excel, PowerPoint, Outlook, Access, OneNote, and even Publisher. The Mac business versions don't include OneNote, Publisher, or Access.

Compatible formats Office 365 files are compatible with Office 2010 and 2013. Office 2007 also works, but you'll lose some functionality.

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You can use Office Web Apps with these files. Office 2003 users have limited access with an appropriate compatibility pack, but that will end in January 2014. Office 2013 users considering Office 365 so they can share files with others who don't have Office do not need Office 365. They can save Office 2013 files to SkyDrive and invite others who don't have Office to view them. Invitees don't need a SkyDrive account or Office to view files on SkyDrive (but they will need an invitation).