With Office 365, the applications are installed on your PC, just like they are in Office 2010-2016. Aside from the periodic feature updates, you need to keep your subscription up-to-date. That's because Office will regularly check your subscription status and, if it's not current, will disable the software so it behaves like an expired trial version of Office 2010, for example (e.g. you can't print or save).
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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