Which Microsoft 365 alternative fits your business?

Even though Microsoft 365 (formerly Office 365) impresses with its features and functionality, some businesses are looking for suitable alternatives—either because the subscription model is not feasible for them, the feature set is too extensive, or the costs are too high. We have reviewed the various Microsoft 365 alternatives on the market for you and present the best options.

Important features a Microsoft 365 alternative should have

The extensive feature set of Microsoft 365 remains a key advantage for many users and is one of the main reasons why Microsoft Office applications continue to be the standard in most companies. For an alternative to Microsoft 365 to be a viable option, it needs to provide many of the functions associated with the market leader.

The role of Exchange servers

Data exchange is a critical factor in modern businesses, and collaborative work on documents and processes is becoming ever more important. In this context, high availability and a dependable version history are especially relevant. Many organisations continue to rely on Microsoft Office, often alongside a hosted Microsoft Exchange Server, as only a few alternatives — such as Google Workspace or the OX App Suite — provide comparable capabilities. When considering an alternative to Microsoft 365, it is therefore vital to pay attention to this aspect. Companies that rely heavily on Exchange may otherwise be forced to implement complex and time-consuming workarounds.

Accepting file formats

Another central aspect to consider is file format compatibility. A viable alternative to Microsoft 365 must be able to create files that users with the Microsoft Office package can open, and also process files created within it. Since Microsoft 365 remains widely used in the business world, it is not always practical to provide every document solely as a universally readable PDF. For those who want to collaborate on documents with business partners, partner companies, or customers, integrating the appropriate file formats is essential. OnlyOffice, for example, offers particularly high compatibility with Microsoft formats (including DOCX, XLSX, and PPTX) without loss of formatting. This is the only way to ensure seamless data exchange across different programs. Alternatives to Microsoft 365 that do not offer this level of compatibility were therefore not included in the direct comparison.

Taking the GDPR into account

Another important point for businesses is the General Data Protection Regulation (GDPR) and its consideration within programs. Microsoft 365 already took a pioneering role here, impressing with its consistent and exemplary implementation. Solutions like OnlyOffice (in self-hosting) or the OX App Suite (European provider) now meet GDPR requirements sometimes more strictly than Microsoft or Google. This has the immense advantage that, as a business owner, you have to worry less about this issue. GDPR aspects can be problematic with some alternatives, especially the free ones. Data protection should never be neglected when considering Microsoft 365 alternatives.

Overview of alternatives to Microsoft 365

We’ve put together an overview of the leading alternatives to Microsoft 365. While there are certainly many other options on the market, here we focus on the most widely used and popular solutions.

Cost legend: + = low ++ = medium +++ = high

OnlyOffice

OnlyOffice offers a modern open-source alternative to Microsoft 365. The tool is particularly strong when combined with Nextcloud or as a self-hosted solution for privacy-focused companies. With high format compatibility and granular user management, the platform is also suitable for professional teams.

Advantages

Besides the seamless use of Microsoft Office file formats, OnlyOffice impresses with an intuitive user interface and extensive options for real-time collaboration. Companies that value data sovereignty particularly benefit from the option to operate the solution in their own data centre, thereby maintaining full control over sensitive data. Additionally, OnlyOffice’s modular structure allows for flexible integration into existing IT infrastructures and is fully GDPR-compliant when self-hosting.

Disadvantages

Despite its many strengths, OnlyOffice also has some limitations. The functionality of individual modules (e.g., presentations or spreadsheets) is not as advanced as in Microsoft 365, especially with complex formulas, macros, or diagrams. Even though real-time editing works reliably, performance can decline when large files are edited simultaneously—particularly in self-hosted setups without adequate server resources.

Google Workspace

Google Workspace is the professional version of the Google Apps available for free to private users. Google Workspace combines a wide range of features and is enhanced by the power of Google’s architecture. Therefore, companies that already rely heavily on many Google services increasingly choose this solution.

Advantages

In addition to seamless handling of Office file formats, this Microsoft 365 alternative offers the benefit of unrestricted access to all Google services from anywhere. Prioritised support and a broad service portfolio round out the offering. Real-time collaboration is fully supported, and with unlimited online storage available, the solution is also highly scalable.

Disadvantages

As an American corporation, Google is subject to the Cloud Act and must grant US authorities access to its users’ data. Since data use and sharing on the European side are subject to the GDPR, companies need to set up an additional data processing agreement with the US company.

When it comes to Google Workspace, there are hardly any disadvantages in its use. However, those who are skeptical of Google and the security of Google Drive and have not yet worked with the various solutions might be better served by another Microsoft 365 alternative.

LibreOffice

LibreOffice was originally created as a fork of OpenOffice and is therefore built on the same architecture. However, the development team found OpenOffice’s minimalist approach too limiting, which led them to reintroduce many practical features in LibreOffice. Particularly for freelancers, this free alternative to Microsoft 365 can be a solid and reliable choice.

Advantages

Due to its similarity to Microsoft 365, the program is highly beginner-friendly and easy to use. Common file formats are supported, allowing you to read, edit, and save Office documents. The straightforward user interface and uncomplicated functionality also reduce memory usage, making the program particularly appealing on weaker hardware.

Disadvantages

LibreOffice was developed with a focus on individual users, offering businesses only a limited portfolio of options. Especially, group work and the convenient exchange of files in real-time are only partially feasible with this Microsoft 365 alternative. While specific features can be integrated, they typically need to be self-developed—requiring technical know-how and potentially being complex or prone to errors.

OX App Suite

The OX App Suite, by contrast, delivers many of the features users expect right out of the box. It also fully meets modern privacy requirements. In addition, the intuitive menu navigation and extensive functionality make it easy to handle virtually all Office Suite tasks conveniently and efficiently with the OX App Suite.

Advantages

The OX App Suite primarily impresses with its extensive functionality, which is on par with Microsoft 365. Additionally, the program offers not only a comprehensive Office integration with all file formats but also an intelligent email solution, including online storage and suitable email addresses for your business.

Disadvantages

When using the OX App Suite as a Microsoft 365 alternative, you will need to adapt to a different operating environment. At first, this involves a noticeable adjustment across the various programs and interfaces. However, once the transition is complete, the change is unlikely to be regretted.

iWork for iCloud

iWork for iCloud is Apple’s own alternative to Microsoft 365. This solution is mainly suited for companies that already operate within an Apple-based infrastructure, enabling them to use the programs more seamlessly. For businesses relying on the Microsoft ecosystem without Apple devices, the benefits are limited. Although iCloud apps can be accessed via Windows browsers, functionality is restricted, and usage on Android devices is not officially supported. However, where the right devices are in place, iWork can be a strong Microsoft 365 alternative, impressing users with its features and capabilities.

Advantages

This free solution is perfect for all Apple enthusiasts: It is fully compatible with iOS and usable without restrictions on all Apple devices, whether it’s a MacBook, iMac, iPad, or iPhone. Collaborative work, such as simultaneous document editing by different users, is also possible.

Disadvantages

The use of iWork for iCloud is primarily beneficial for companies with an existing Apple infrastructure. Although this alternative to Microsoft 365 can be utilised on Windows PCs via the web versions of Apple programs Pages, Numbers, and Keynote, its functionality is significantly limited. The full value of iCloud is realised mainly in conjunction with the Apple operating system. On many tablets and smartphones (for example, Android devices), the use of iWork for iCloud is currently limited or not possible at all.

Every Microsoft 365 alternative offers its own advantages and disadvantages

Choosing an alternative to Microsoft 365 often means benefiting from the unique strengths of each system. This can be an advantage for companies when the range of tools in Microsoft Office is either too extensive or does not align with their specific needs. It is also important to factor in GDPR compliance to ensure long-term benefits from the solution you select.

Since alternatives to Microsoft 365 are generally used over many years, it is worth taking the time to carefully evaluate all pros and cons. Solutions such as Google Workspace or the OX App Suite can serve as effective replacements in a professional environment. However, if your entire infrastructure — including Exchange servers — is already built around Microsoft Office, the decision to switch should be made with caution. In some cases, it may be more practical to remain with the market leader and continue benefiting from its extensive features and consistent update policies.