The main difference between Office 365 and an on-premise version of Microsoft SharePoint is that you rent Office 365 but buy the on‑premises version. Office 365 is provided as software‑as‑a‑service and does not involve a heavy up‑front investment. With Office 365, you pay a monthly or annual subscription fee that entitles you to automatic version upgrades and Office on-demand services.u003cbru003e