Microsoft Office 365 vs GoDaddy Office 365 [Breakdown]

Microsoft Office 365 vs GoDaddy Office 365 [Breakdown]

GoDaddy and Microsoft formed a partnership in 2014, which led to the former creating its own offering of Microsoft 365 suite (they changed the name from Office 365 to reflect Microsoft’s recent change).

Unfortunately, this offer, though significantly cheaper during the promotion period, has led to some problems for some of its users.

In this article, you will learn the difference between GoDaddy Office 365 and that of Microsoft Office 365. We will also discuss why plenty of people think of GoDaddy’s offer as a “trap”.

Let’s get started.

What is the GoDaddy Office 365 all about?

Although GoDaddy has a Microsoft 365 offer, they’re not really an office productivity company. They’re actually an internet domain registrar and web hosting company with more than 20 million customers.

But since their partnership with Microsoft began in 2014, they started offering their own Microsoft 365 suite.

GoDaddy Microsoft Office 365 Plans

At first glance, their offers are quite similar to what Microsoft offers at its site, but at a lower price.

Currently, they offer three plans:

  1. Online Essentials ($7.99 per user per month) – This includes the web versions of Office apps, a professional email connected to your domain, and a terabyte of online storage.
  2. Business Premium ($8.99 per user per month) – This includes everything in the earlier plan, installable office apps, a suite of Microsoft business and productivity apps, and the ability to set up HIPAA compliant email.
  3. Premium Security ($16.99 per user per month) – This includes everything in the earlier plan, an advanced email security feature with end-to-end encryption, and a secure, searchable archive.

The advanced email security and email archiving features can be bought separately with the lower plans with each amounting to $4.99 per month. In addition, the promo usually only lasts for a year.

After that, the renewal price will be more or less comparable to when you buy a plan straight from Microsoft.

Disclaimer From GoDaddy on Office 365 Products

As for the specific desktop applications that come with the Business Premium plan, GoDaddy clarified that it includes the latest version of Word, PowerPoint, Access, Excel, Outlook, OneNote, Publisher, and Teams.

Take note, however, that Mac users can’t download Publisher.

You can check out their whole product page here.

Sign up for exclusive updates, tips, and strategies

    How does it compare to Microsoft Office 365?

    Because of the initial price, the offer from GoDaddy seems really interesting. Unfortunately, you may run into some problems later on as your company grows. In fact, you may have to shell out even more cash to sort out these problems.

    Let me explain…

    First off, GoDaddy is geared towards small businesses with more or less ten people. What they offer is perfect for an organization with that number of users, assuming they do not have more technical requirements.

    The problem lies when that organization expands and will need to use more technology and application.

    On the part of Microsoft, their offers can get complicated really quickly especially for those that need only the basic office applications.

    Microsoft 365 Plans for Business

    As of now, Microsoft has four business plans:

    1. Microsoft 365 Business Basic ($5.00 per user per month) – This plan includes the web and mobile versions of Word, Excel, and PowerPoint as well as secured cloud services like Teams, Exchange, OneDrive, and SharePoint.
    2. Microsoft 365 Business Standard ($12.50 per user per month) – This plan includes everything in the earlier plan plus the desktop versions of Office apps for PC and Mac.
    3. Microsoft 365 Business Premium ($20.00 per user per month) – This plan includes everything in the earlier plan with advanced threat protection and PC and mobile device management.
    4. Microsoft 365 Apps ($8.25 per user per month) – This plan is for businesses that need Office apps across devices and cloud file storage without a business email and access to Microsoft Teams.

    As you can see, the offer from Microsoft is significantly more expensive than what GoDaddy offers. GoDaddy’s Business Premium, which has more or less the same offering as Microsoft 365 Business Standard, costs more than half of GoDaddy’s equivalent.

    But is GoDaddy’s offers really worth the buck?

    The Problem With GoDaddy’s Office 365

    You can say that GoDaddy’s low-priced offer comes at a larger price, which becomes more apparent when your organization grows into more than ten people and you need to use more technology and application.

    GoDaddy, as a way to appeal to small businesses, make the user interface definitely simple. Small organizations, especially ones with any technical staff, will like this as they will be able to easily navigate through their Office 365 needs.

    GoDaddy Dashboard

    But that simplicity becomes a problem as it severely limits the organization’s capability to expand and use more applications other than the ones that come with GoDaddy’s offers.

    In comparison, the source’s offer will enable you to use more applications as you grow. For example, if you need to use a business analytics tool, Microsoft has Power BI. Need a CRM? The answer is Microsoft Dynamics 365.

    As your business needs grow, there is a big chance that Microsoft has the right tool. All you need to do is buy access to that tool and integrate it with your Microsoft account.

    Unfortunately, even if GoDaddy’s offer is still Microsoft 365, any one of their plans doesn’t offer the same flexibility. If you try to purchase an add-on from Microsoft or for Power BI, you get redirected to a page shown below and blocked from downloading additional add-ons.

    GoDaddy Workspace Signin Page

    This makes it impossible for you to upgrade your workspace and use more Microsoft applications than GoDaddy’s plans include. This is why others refer to GoDaddy Office 365 as a “trap”.

    To make matters worse, there is no way for you to fix this other than buying a Microsoft Office 365 from the source and migrating your data from GoDaddy. You can do it yourself, but you may need a tech professional in case some problem arises.

    Other Reasons to Directly Buy From Microsoft

    Let’s take it further and talk more about the technical limitations and problems that will make buying Microsoft 365 directly from the source seem more reasonable even if all their plans are more expensive than GoDaddy.

    Back to the fact that you can’t upgrade your workspace or buy more add-ons from Microsoft if you’re on a GoDaddy plan…

    The reason why you are blocked from downloading additional add-ons is that you do not have any administrator rights when you buy a plan from GoDaddy, even if you choose the most expensive one.

    This is a serious issue for expanding organizations since they can’t add more applications from Microsoft and have to migrate to what they call the “real” Office 365.

    In addition, it’s also quite clear that buyers from GoDaddy only get to experience the surface level of Microsoft Office 365. Without its full ecosystem and flexibility, Office 365 will be extremely limited.

    This is the reason why users have issues in regards to downloading and using OneDrive/SharePoint sync software.

    As for security, GoDaddy also lacks the two-step or multi-factor authentication feature. Although some users choose to disable the MFA prompt for guests, the feature is still a good defense feature against hackers.

    There is also an issue with viewing the admin control panel. It’s quite an issue for some users especially those that use Office 365 for tech support. Although the admin control panel is accessible, GoDaddy is not making it easy.

    The worse case is probably the fact that contacting GoDaddy’s customer support will avail you mostly nothing. In fact, they will have you call Microsoft directly instead and ask them to cover the troubleshooting issues.

    Advice: Avoid the Trap From Godaddy

    If you need to use Microsoft 365, it’s better that you buy a plan directly from the source. GoDaddy may seem cheaper at first, especially during the first year, but it will cost you more in the future as your organization grows.

    Even resetting your password can potentially become a problem. When you submit a password reset request to GoDaddy, they will take you out of your usual Office 365 and get you to the GoDaddy portal instead.

    The problem here is that there is a chance that you will be resetting the wrong password instead.

    In the future, when you need to use more applications, you will have to either waste time doing the migration yourself and solving problems that will arise or spend money asking someone to do it for you.

    Doing it yourself will require you to:

    • Purchase a new Microsoft 365 plan from Microsoft
    • Perform an IMAP migration for the mailbox data
    • Remove your custom domain from your Microsoft 365 in GoDaddy
    • Add and verify your domain in the real Microsoft 365
    • Change the user mailboxes and verify that you have all your data

    As of now, there is no way around this other than migrating your whole Microsoft 365 experience. In fact, that may never come seeing that the ecosystem from GoDaddy’s Office 365 is not connected with the real Microsoft Office 365.

    If you need any help or if you have any questions related to GoDaddy Microsoft 365 (from comparison to migration), feel free to leave a comment below or send me a direct message via the contact page.

    About Ryan Clark

    As the Principal Solutions Architect at Mr. SharePoint, I help companies of all sizes better leverage Modern Workplace and Digital Process Automation investments. I am also a Microsoft Most Valued Professional (MVP) for Office Apps & Services.

    Subscribe
    Notify of
    guest
    30 Comments
    Oldest
    Newest Most Voted
    Inline Feedbacks
    View all comments

    Darryl Cera
    1 year ago

    Hi Ryan… So in order to interface with GoDaddy with my custom domain and email address, I need some form of Microsoft 365 whether it’s from them or directly from Microsoft… is that a valid statement?… If I cancel my Microsoft 365 with GoDaddy my account would not function properly without 365 because it is necessitated one way or the other

    Paul Bleaking
    Paul Bleaking
    Reply to  Darryl Cera
    6 months ago

    Hi Darryl. What Ryan needs to explain is if you own a domain with godaddy and your email is attached to this domain. You must create .pst files of all the emails from outlook within godaddy before you can use that domain with Microsoft. The reason why godaddy does this is so it makes it easier for the business. Once you have created .pst files for all of your email accounts you can have godaddy remove the email feature from the domain. You will have downtime between 24/72 hrs of no email coming in. Then once it is free from… Read more »

    Jason
    1 year ago

    Hi Ryan, do you have a guide for those that have GoDaddy as their registrar but want to setup Microsoft 365 outside of GoDaddy? I just acquired a domain and I want to setup the Exchange server for growth and am looking for best practices. Thank you!

    Ryan
    Ryan
    Reply to  Ryan Clark
    7 months ago

    Hey Ryan, thanks for this article. Did you ever write the blog post on this guide? I am in the scenario Jason describes. I am tired of my regular imap godaddy email not playing nice with outlook and want to transition to an exchange server in hopes it will be more dependable.

    Brian
    Brian
    10 months ago

    I am trying to help someone who has a nearly full office 365 e3 enterprise 100gb mailbox. I am trying to simply make an archive tona local file but that seems to not be allowed?

    kj
    kj
    10 months ago

    I landed here searching for a list of what features are missing from the Go Daddy version. I was trying to find the security and compliance center and turn on 2 factor and logging. The $5.00/month version from MS has it, but not the $7.00/month.

    I used to use Go Daddy a lot and recommend it to customers, but I won’t make that mistake again.

    Steve
    Steve
    9 months ago

    Hey Ryan
    I was going to migrate from Microsoft Office 365 to Godaddy’s Office 365 (per a recommendation from Godaddy), but will not do that now thanks to this article!
    Thank you so much for saving me a lot of time and money!

    Derrick
    Derrick
    9 months ago

    Hey Ryan, Great article. I’ve used Microsoft’s Tenancy for a few of my clients whom have external websites. I acquired a new client who just happened to have GoDaddy as their domain and hosting provider. They made the mistake of purchasing Microsoft 365 Starter Email from them as well. Glad I came across your article as I was debating on moving them from GoDaddy to Microsoft. Thankfully it’s a brand new setup and therefore no emails in use as yet. Hopefully they can cancel. They had to create one email address for the purchase. I tried to purchase from Microsoft… Read more »

    Donna
    Donna
    8 months ago

    Hi Ryan,
    We are with Go Daddy right now. What alternative to GoDaddy would you recommend?

    Adil
    Adil
    Reply to  Ryan Clark
    1 month ago

    Actually, when speaking with the 5th or so (very helpful, empathetic) GoDaddy support staff on the phone, they told me (based on parallel input from their Level 2 support) that the only way for me t be able to access Microsoft Teams Phone is to go directly with Microsoft for the 365 subscription. Honest, clear on GoDaddy’s part. But – whilst I’m on it, the other options I have is not to ‘defederate’ and continue in the Microsoft world, but to port over to Google (Domain + Hosting + Voice). I’m personally an Apple person, but they don’t have this… Read more »

    Glenn Stevens
    Glenn Stevens
    7 months ago

    Hi,

    GoDaddy is telling me I need a Microsoft 365 Email Essentials Basic plan for each of my two email accounts as they have stopped Workspace.

    I already have a Microsoft 365 Family account direct with Microsoft.

    What can I do to avoid these extra costs?

    Paul Bleaking
    Paul Bleaking
    6 months ago

    Well established magazine regarding technology.

    https://www.pcmag.com/reviews/godaddy-microsoft-365-business-premium

    Read it all. This is from Oct of this year not like this from April of this year. I’ve been doing IT for 20+ years. A lot of this stuff is opinionated and people do what they feel is best for them or for there company. If you have had a bad experience then of course you are gonna be bitter and the same holds true if you had a great experience.

    You just have to do research. I do a lot of research using PC Magazine.

    David Mosscrop
    David Mosscrop
    Reply to  Paul Bleaking
    6 months ago

    Thanks Paul
    IMHO two helpful and constructive posts – much appreciated!
    Dave

    Calling_out_misinfo
    Calling_out_misinfo
    4 months ago

    You are wrong about so many things here. You don’t understand how SSO federation works. There are more plans that they offer, just not plans that are very advertised. MFA is supported, Adhoc services are enabled (such as powerBI), they’re just not sold or supported by godaddy. literally the only change godaddy makes is disabling the office admin center. There are a few things in there that don’t have alternate means of management – sure, but EAC, AAD, SharePoint admin etc. Are all still accessible, and the overwhelming majority of administrative tasks can still be carried out. I can only… Read more »

    Briana Hicks
    Briana Hicks
    Reply to  Calling_out_misinfo
    4 months ago

    Why so rude??

    Mel
    Mel
    4 months ago

    Thanks for the great information! Currently using Godaddy’s offering and trying to add Projects add on. I found a workaround in the Godaddy faq forum by using Azur. The example is for adding Visio, but another user has used the same process to add Projects. The issue I’m finding when trying to follow the same steps is that I can’t buy a license using my goddady email. So do I purchase it with a different email? If so how do I then get that email/license into the Azur account to be able to transfer the license to the account I… Read more »

    Chris
    Chris
    3 months ago

    Ryan,

    There are a few ways now to defederate GoDaddy from the Office 365 tenant. You actually do get an admin account. By default the “GoDaddy email admin” is a global admin. You can use it to login into portal.azure.com and get to the federated access. Also allows you to turn on the Powershell access. This does require some expertise within Office 365 and takes about an hour to complete. The biggest hurdle is usually the locked in licenses from GoDaddy.

    Adil
    Adil
    1 month ago

    Amazing – after spending 8-9 days on this issues, I stumbled across this blogs. It addresses the root causes of my issue (why I could not purchase a Microsoft Teams Phone add-on to the GoDaddy Office 365 subscription. We are a one-band + hubby help…and it would have been great (for customers; but not for GoDaddy sales in the short term) if the limitations of the GoDaddy version of the Office 365 subscription were listed at the point purchase… Huge thanks for this. Really helpful (for the problem) and it provides emotional closure to all the pent-up frustrations by rationally… Read more »

    kathy garver
    kathy garver
    5 days ago

    Unfortunately our law office went down the Go Daddy path with 365. We recently split the firm and are trying to figure out how to move emails from one domain name to another. Go Daddy says to export import but that does not appear to be possible or at least isn’t working. We are on MACs so that complicates finding an IT person to help us accomplish this task. Any suggestions?

    30
    0
    Would love your thoughts, please comment.x
    ()
    x
    Scroll to Top
    Tweet
    Share
    Share
    Pin