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Office 365 online plans(Subscription "Rent") include the complete suite of Office applications, plus other services that are enabled over the Internet, including extra cloud storage with OneDrive and Skype minutes for home use. With Office 365 you get the full, installed Office experience on PCs, Macs, tablets (including Windows, iPad, and Android) and smartphones. Office 365 plans are available as a monthly or annual subscription. With Office 365, you will always have the latest version of Office apps.
Office 2016 suites(Perpetual License "Own"), including Office Home & Student and Home & Business, include applications such as Word, Excel, PowerPoint, and OneNote; they are available as a one-time purchase for use on a single PC or Mac. The applications are not automatically updated; to get the latest version, you must purchase Office again when the new version becomes available.