Microsoft licensing can be confusing. There are many products and they are licensed in different ways. There is a lot of jargon. I am clarifying these to get you started. Please ask me about licensing aspects for specific products.
Microsoft offers the following types of licenses:
Microsoft ‘Cloud Solution Provider program (CSP)’ is now the channel under which Microsoft product resellers sell Microsoft software licensing products, mainly the subscription but some perpetual licenses as well. There are four types of CSP streams i.e.
Software assurance (SA) is an add on service to ‘perpetual licenses that provides updates and many other benefits (ask for details). It is mandatory when you install server licenses in a ‘datacenter’ environment. Otherwise, you would purchase SA only when you have a need for updates or other benefits.
Initial software assurance (SA) is purchased for three years and is to be paid in three years in advance or yearly in advance for 3 years. At the end of 3 years, you can renew the software or not. When you renew, the software assurance benefits continue. When you don’t, you still own the perpetual license without the SA benefits.
Resellers are generally more responsive, personalised, easy to reach and are in a better position to discuss and advise you on licensing matters. As they work closely with you, they have a better understanding of your business and needs. They can provide you information quicker and first line of support. They can tailor response to suit you and sometimes, may offer discounts. They also assist you in setting up your systems.
.onmicrosoft.com domain and portal is your virtual estate on the Microsoft portal. Microsoft or its resellers provision licenses on this portal. You create users and assign them licenses through this portal. To add or switch a reseller, you just agree to ‘reseller relationship’ on this portal with the new reseller and dissociate the old reseller, if you need to. Your licenses are not impacted. You also ‘onboard’ your business domains such as ‘yourcompany.com.au’ to create emails for ‘yourcompany’.
In some cases, the option is only the ‘subscription’ for example Defender or ‘perpetual’ license for example Windows OS. There however are products such as Office that are available both as ‘subscription’ and ‘perpetual’ licenses. These products almost have the same functionality and are compatible i.e. you can exchange documents between then. Yet, they are different and you will notice it from look and feel and as you get started with working. There are features in subscription licenses that may not be available in perpetual licenses and vice versa.
In general, you would select perpetual license when you have no need for updates or require only standalone functionality. The licenses are locked to devices. On the other hand, when the need is to have regular updates, use the license on multiple devices and collaboration, then perpetual licenses are good.
Microsoft started with Office 365 as subscription licenses and now, they are updated to ‘Microsoft 365’ product suite. Microsoft has rebadged Office retail or FPP products to Office 365 LTSC 2021 which are device perpetual licenses.
In this answer, we will cover Office 365 and Microsoft 365 subscription licenses.
Both Office 365 and Microsoft 365 licenses include Microsoft Word, Excel, PowerPoint, Outlook, SharePoint, Exchange, One Drive etc., mailbox and archive storage, standard security features etc. what Microsoft defines as foundational requirements.
The Microsoft 365 enhances the offer with Windows Enterprise, Core security, identity, and access management and takes it to the next level.
Now, only 365 E1 (without teams), Office 365 E3 (without teams), Office 365 E5 (without teams) and Office 365 F3 (without teams) and Office 365 F3 are available under Office 365 products.
Other than this, all products fall into MS 365 fold.
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