The idea of Office 365 is that a document looks the same whether it is opened using a premises or hosted Microsoft application.
Office 365 shows when multiple people are editing a single document. Users can also initiative IM, voice or video calls with the editors.
The collaborative editing features show who edited a piece of text, and surfaces their presence in case you want to contact them further about an edit.
Office 365 includes functionality that allows small businesses to build and administer their own websites, rather than paying a web developer to do it for them.
The Office 365 account owner becomes the administrator. As an admin, you can create new user accounts, set up and manage service settings, check service health, purchase subscriptions, and assign licenses.