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IT Advocate
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The biggest benefit for end users is a familiar interface, a huge amount of people already use MS Office. Office 365 offers extra functionality inside of their well used office applications without having to learn new interfaces and processes.

For business owners and CFO’s it allows them to roll out enterprise grade functionality at a fraction of the cost, with no major hardware expenses or IT tech labour charges, even ongoing expenses are minimised.

MS Exchange mail servers are great for even the smallest business, with full email synchronicity across devices (phone/tablet/pc), shared calenders and central email storage, however buying and maintaining an exchange server is costly. I even run my email on a Hosted Exchange service (not Office 365) as a trial of typical hosted services.