Understanding the Difference Between Azure and M365 for Nonprofits: It's Okay to Be Confused!

At the heart of this post is Kairos IMS, an innovative Impact Management System designed to empower human-serving nonprofits and social impact organizations. Co-developed by the Urban League of Broward County and our trusted technology partner, Impactful, Kairos IMS reduces administrative burdens, enhances holistic care, and enables organizations to leverage data for increased agility and seamless service delivery. In this blog series, we’ll take a closer look at the powerful technologies that fuel Kairos IMS, from Azure services to security frameworks, offering insight into how modern infrastructure supports mission-driven impact. Click here  to learn more. 

Nonprofit organizations often face a variety of challenges when it comes to technology. One common area of confusion is understanding the difference between Microsoft 365 (M365) and Azure. With both being offered by Microsoft, it’s easy to see how they can seem similar, especially when they both promise to improve productivity, security, and collaboration. But they serve very different purposes.

The good news? It’s okay to be confused! Many nonprofits are in the same boat. Let’s break it down clearly so you can understand how each platform benefits your organization and how to make the most of both.

What Is Microsoft 365 (M365)?

Microsoft 365 is a suite of productivity tools designed to help organizations communicate, collaborate, and manage their work. It includes well-known services such as:

• Outlook for email and calendar management
• Word, Excel, and PowerPoint for document creation
• Teams for collaboration and meetings
• OneDrive for cloud storage
• SharePoint for document management and internal websites

For most nonprofits, M365 is the heart of their day-to-day operations. It's a suite that allows teams to collaborate in real-time, access documents from anywhere, and communicate effectively. M365 is all about productivity and collaboration, with a focus on streamlining daily tasks.

What Is Azure?

On the other hand, Azure is Microsoft’s cloud computing platform. It’s a much broader service that allows organizations to run applications, store data, and even build their own infrastructure—all in the cloud. Think of Azure as the backbone of your nonprofit’s IT infrastructure. It enables:

• Cloud storage and databases (Azure Blob Storage, SQL databases)
• Virtual machines and computing power (Azure Virtual Machines)
• Networking services (Azure Virtual Network)
• Artificial intelligence (AI), machine learning, and analytics services

Azure is designed for developers, IT professionals, and system administrators. If your nonprofit is looking to build custom apps, run complex data analytics, or scale up its technology infrastructure, Azure is the platform that provides these capabilities.

So, How Are They Different?

While both platforms are cloud-based, their purposes are distinct:

• Microsoft 365 focuses on providing a set of tools to increase productivity and collaboration for your staff and volunteers. It's where most of your team's daily work happens—email, document creation, file storage, and virtual meetings all take place here.
• Azure, on the other hand, is an infrastructure platform. It’s where nonprofits can build and manage everything from databases to virtual machines to AI-driven services.

Can Nonprofits Use Both?

Absolutely! In fact, many nonprofits use both platforms together. Here’s how they can complement each other:

• Azure can support M365: Azure provides the cloud services and infrastructure that support M365. For instance, when you store a file in OneDrive or SharePoint, it’s being stored on Azure’s cloud infrastructure.
• Custom Development and Automation: If your nonprofit needs a custom application, Azure allows you to build and host it, while Microsoft 365 tools help your team collaborate and use that application effectively.
• Enhanced Security: Both M365 and Azure offer robust security features. You can use Azure to manage user identities, while M365 offers secure collaboration and document management tools.

It's Okay to Be Confused – Here’s How to Start

If your nonprofit is just starting to explore these technologies, don’t worry about knowing everything right away. The key is to start with what you need. Microsoft 365 is the ideal place for most nonprofits to begin—it’s a user-friendly suite of tools that will help you get more done every day.

If you feel ready to take your nonprofit’s tech infrastructure to the next level, consider exploring Azure for more custom needs like cloud computing, building apps, or managing complex data.

What Should You Do Next?

• Assess your needs: If your nonprofit’s main goal is productivity and collaboration, Microsoft 365 is the right starting point. If you’re thinking about scaling, custom apps, or handling large datasets, Azure is the way to go.
• Leverage Microsoft grants and credits: Microsoft offers nonprofit organizations substantial discounts and free credits to use M365 and Azure. Be sure to explore these options to get the most value out of both platforms.
• Get support: Microsoft provides excellent documentation and support for nonprofits navigating these technologies. Don’t hesitate to ask for help as you figure out the right solutions for your organization.

So, if you’re feeling confused about the difference between Azure and Microsoft 365, you’re not alone! Many nonprofits are in the same position, and that’s okay. Start with Microsoft 365 for day-to-day productivity, and consider Azure as you look to scale and grow your technology infrastructure. With the right approach, these tools can work hand-in-hand to help your nonprofit achieve its goals.

And remember—asking questions and taking it one step at a time is the best way to ensure you’re using these platforms in the most effective way possible.