Microsoft 365(aka M365), a suite of productivity tools from Microsoft, is known for its flexibility and the variety of options it offers. However, this flexibility can sometimes lead to complexity, especially when it comes to licensing. In this article, we’ll dissect the intricacies of M365 plans and why they might seem complex.
Why is Microsoft 365 Licensing Complex?
There are several reasons why M365 licensing might seem complex:
- Variety of Components: M365 includes various components like Office 365, on-premises server rights, Office Professional Plus rights, Windows 11 Enterprise, and Enterprise Mobility + Security (EMS). Each of these components has its own licensing rules and requirements.
- User Subscription License (USL): M365 is licensed on a per User Subscription License (USL) basis. Every individual using M365 services and/or software must have a designated User Subscription License (USL).
- Tailored Plans: Microsoft provides dozens of license plans, which allow enterprise organizations to tailor the Office 365 services to their specific requirements and budgets. This flexibility requires IT teams to make smart decisions about license usage across complex license plans.
- Sub-options and Interdependencies: There are numerous options, sub-options, and interdependencies that become very difficult to track, especially in organizations with thousands of user accounts.
- Optimization Challenges: Even with enough staffing and an organization-wide intention of optimizing product licenses by monitoring usage, making proper, accurate licenses assignments is not easy.
Despite the complexity, the flexibility of Microsoft 365 licensing allows organizations to get the most value from their investment.
Microsoft 365 Plans: A Closer Look
M365 offers a range of plans tailored for different user needs. Here’s a breakdown of some of the key plans:
For Personal Use:
- Microsoft 365 Family: Priced at $99.99/year or $9.99/month, this plan is for one to six people. It allows sign in to five devices at once and includes up to 6 TB of secure cloud storage.
- Microsoft 365 Personal: Priced at $69.99/year or $6.99/month, this plan is for one person. It allows sign in to five devices at once and includes 1 TB of cloud storage.
For Business Use:
- Microsoft 365 Business Basic: Priced at $6.00 user/month (Annual subscription), this plan includes identity, access, and user management for up to 300 employees, custom business email, and 1 TB of cloud storage per employee.
- Microsoft 365 Business Standard: Priced at $12.50 user/month (Annual subscription), this plan includes everything in Business Basic, plus desktop versions of Word, Excel, PowerPoint, and Outlook.
- Microsoft 365 Business Premium: Priced at $22.00 user/month (Annual subscription), this plan includes everything in Business Standard, plus advanced identity and access management, enhanced cyberthreat protection, and enterprise-grade device and endpoint protection.
- Microsoft 365 Apps for business: Priced at $8.25 user/month (Annual subscription), this plan includes desktop versions of Word, Excel, PowerPoint, and Outlook, and 1 TB of cloud storage per user.
Adding Microsoft Copilot to Your Microsoft 365 Plan
Microsoft Copilot is an additional service that can be purchased on top of certain M365 plans. In order to use Copilot in M365, M365 Personal or Family plan is required. For business and enterprise use, customers must be licensed for M365 Business Standard or Business Premium, M365 E3 or E5, or Office 365 E3 or E5. The cost of Microsoft Copilot for M365 is $30.00 user/month (Annual commitment).
Partnering with Gear Cloud Solutions
As a Microsoft 365 partner, Gear Cloud Solutions is committed to helping you find the best plan for your organization. We understand that every organization has unique needs and we strive to provide solutions that are tailored to meet those needs.
Not only do we help you navigate through the complex landscape of M365 plans, but we also offer promotional pricing and check for eligibility requirements. This ensures that you get the most value out of your investment.
For more information or to request a quote, please visit our website.
