Key Takeaway:
- Software is licensed, not sold: It is important to understand that software is licensed, not sold. This means that users are granted the right to use software in accordance with specific usage terms agreed upon in licensing agreements.
- Microsoft 365 for business is a subscription-based service: It includes various apps and services and its content depends on the product purchased. Licenses are assigned to people in an organization based on their needs. More licenses can be bought or reassigned as organizational needs change. Different subscriptions can have different license assignments. Each person can install Microsoft 365 on up to five PCs or Macs, five tablets, and five phones. Assigning a license to someone grants them access to the apps and services included in the subscription.
- Standardizing on Microsoft products allows for integrated security solutions: Standardizing on Microsoft services allows for integration with Microsoft Intelligent Security Graph. It is recommended to conduct a cyber security assessment for review and planning, and correct licensing allows for access to combined risk intelligence and automation.
Understanding Microsoft Licensing: Simplified Overview
Microsoft licensing can be tricky to understand. But, a simplified overview makes it easier. There are two types of licenses: Per-User and Per-Device. Per-User licenses let users access Microsoft apps from multiple devices. Per-Device licenses are attached to one device only and can be used by many people.
It’s important to know that each license has different features and limitations. The wrong option could cost extra or break the terms. A Software Assurance agreement can be useful too. It can give businesses training, support and upgrades. This may save money in the long run.
Seeking advice from licensing experts is a good idea. They can help to get the right license. Plus, staying compliant and correctly licensed can stop penalties and legal issues. With a good understanding of Microsoft licensing, businesses can pick the best option and carry on.
Microsoft 365 Subscriptions and Licenses
Today, Microsoft 365 subscriptions and licenses are a must-have for companies that want to up their work efficiency. There are many options, so it’s wise to understand the features and costs of each.
Business Basic and Business Standard have limited and full Office applications, respectively. Business Premium adds extra security and device management. Apps for Business provides web and mobile Office applications.
Enterprise E3 covers Office applications and services, plus advanced security, analytics, and voice. Enterprise E5 adds Power BI.
Evaluate each subscription and license to pick the one that fits your business needs. Microsoft 365 subscription and license plans come with different prices and features.
Investing in the right Microsoft 365 subscription or license plan can boost your business’s functionality, cost-efficiency, and value.
Fundamentals of Microsoft Licensing
To get a grip on Microsoft Licensing, one needs to understand the licensing models they offer. These include:
- Open Value
- Open License
- Microsoft Products and Services Agreement
- Enterprise Agreement
- and cloud-based licenses such as Azure Reserved Instances and Azure Hybrid Benefit.
Each of these suits different objectives.
To calculate licensing costs, one must know the type of license, the number of licenses, and agreement length. These fees are paid per user/device, or via a subscription or software usage.
Microsoft provides programs and tools to manage licenses. An example is the Volume Licensing Service Center which lets organizations control licenses, access Software Assurance benefits, and downloads. Knowing about these helps businesses manage their licenses and reduce costs.
In sum, to get a handle on Microsoft Licensing, one must be aware of the different models, associated costs, and programs/tools offered. This helps organizations make informed decisions and optimize their licensing costs, according to their business needs.
Microsoft Volume Licensing for Organizations
Microsoft Volume Licensing is ideal for organizations. It offers discounted prices on multiple Microsoft software licenses. The program provides various licensing solutions, like Open License Program, Select License Program, and Enterprise Agreement.
It stands out due to its flexibility. You can purchase licenses with a one-time payment or subscription. It can save you up to 45% compared to purchasing individual licenses. So, if you need a solid licensing program, Microsoft Volume Licensing is the way to go!
Licensing for Office 365 and Microsoft 365
Having a good understanding of the licensing agreements and pricing structures is really important when it comes to Office 365 and Microsoft 365. It’s essential to pick licenses that fit your business needs.
For example, Microsoft 365 Business provides an all-in-one license with security and productivity tools. Office 365 has different licenses for different user needs.
To help decide which license to pick, look at the table below. It shows the various options for Office 365 and Microsoft 365, plus their features and prices.
| License Option | Features | Pricing |
|---|---|---|
| Microsoft 365 Business | Advanced security features, productivity tools, and services | $20 per user per month |
| Office 365 Business Essentials | Email, Office applications, cloud services | $5 per user per month |
| Office 365 Business | Office applications, cloud services | $8.25 per user per month |
| Office 365 Business Premium | Office applications, cloud services, and services such as SharePoint and Microsoft Teams | $12.50 per user per month |
Microsoft offers many license choices for small to large businesses. Prices and features vary from advanced security to basic email applications. To pick the right license, look at all the options for Office 365 and Microsoft 365.
Benefits of Standardizing on Microsoft Products for Security
Standardizing on Microsoft products offers many security advantages. Popular among organizations, Microsoft provides a complete security package including Teams, Windows Defender and Azure Active Directory. Microsoft allows organizations to centrally manage security throughout all user devices, networks and users, with advanced security features. Automatic updates and patching come with the built-in security of Microsoft applications, ensuring data and systems remain safe from threats. Microsoft’s transparent privacy policies make compliance easier for organizations too.
Licensing and procurement are also simplified by Microsoft as organizations can opt for one licensing agreement covering all products. This saves time & resources – freeing up organizations to focus on their core operations. Moreover, using Microsoft’s productivity applications like Teams enhances collaboration & document security, improving organization security.
In 2017, WannaCry ransomware attacked over 200,000 computers worldwide – including healthcare, finance & government. Those who updated their systems with the latest security patches avoided the attack. By standardizing on Microsoft, organizations gain automated updates & patching, helping to prevent future attacks. All in all, Microsoft is a robust & comprehensive security option for organizations across all sectors.
Five Facts about Understanding Microsoft Licensing: A Simple Breakdown:
- ✅ Microsoft 365 for business is a subscription-based service that includes various apps and services, and licenses can be assigned to people in an organization based on their needs. Different subscriptions can have different license assignments. Each person can install Microsoft 365 on up to five PCs or Macs, five tablets, and five phones. (Source: Microsoft Learn)
- ✅ Windows Server licensing is complex and difficult to understand, with each edition having its own licensing metric. Windows Server Essential is licensed per server with a cap limit on the number of users and devices that can access it, making it ideal for those anticipating mobility into the cloud. The upfront cost for Windows Server Essential is significantly lower than other models and there is no need to buy additional users or device Client Access Licenses (CALs) after the initial purchase. (Source: MetrixData 360)
- ✅ Microsoft Volume Licensing is a service offered to organizations that need to purchase multiple licenses at a lower cost per installation. Volume Licensing is tailored to each particular organization depending on its niche industry and business characteristics. Microsoft is flexible on user rights and license agreement period depending on the number of users or devices. (Source: Softlanding)
- ✅ Microsoft 365 licensing includes Office 365 and Windows 10/11 licensing, with different plans for government, education, frontline workers, small businesses, and enterprises. Most organizations start with Office 365 E3 licenses for all employees, with some opting for E5 licenses to add extra capabilities. Microsoft 365 Business licensing comes in four tiers: Basic, Apps for Business, Standard, and Premium. The more expensive the license, the more features it includes. (Source: TechTarget)
- ✅ Purchasing the correct Microsoft 365 license allows for access to combined risk intelligence and automation, and is recommended for organizations with an online presence. It is important to verify any information with Microsoft Product Terms, which covers 90% of Microsoft licensing for organizations. Deviating from usage terms can result in non-compliance and being called a “pirate”. (Source: Infused Innovations)
FAQs about How To Understand Microsoft Licensing: A Simple Breakdown
What is Microsoft 365 for Business and how does it work?
Microsoft 365 for Business is a subscription-based service that includes various apps and services. The subscription and its contents depend on the product purchased. Licenses are assigned to people in the organization based on their needs. More licenses can be bought or reassigned as organizational needs change. Each person can install Microsoft 365 on up to five PCs or Macs, five tablets, and five phones. Assigning a license to someone grants them access to the apps and services included in the subscription.
What are Microsoft Product Terms and why are they important?
Microsoft Product Terms covers 90% of Microsoft licensing for organizations, and it is important to verify any information with it. Software is licensed, not sold, and comes with mandatory terms and conditions. Deviating from usage terms can result in non-compliance and being called a “pirate”. Common sense does not apply to licensing, and it is important to not assume anything.
What is Windows Server licensing, and how is it different from other Microsoft licenses?
Windows Server is an enterprise-class server operating system used for sharing services and providing administrative control over storage, applications, and corporate networks. Each edition of Windows Server has its licensing metric, making it difficult to ensure proper licensing. Windows Server Essential is ideal for those anticipating mobility into the cloud and follows a Specialty Server licensing model, meaning it is licensed per server. The upfront cost for Windows Server Essential is significantly lower than other models, and there is no need to purchase additional users or device Client Access Licenses (CALs) after the initial purchase, as the server has a cap limit on the number of users and devices that can access it.
What is Microsoft Volume Licensing, and how does it benefit organizations?
Microsoft Volume Licensing is a service offered to organizations that need to purchase multiple licenses but do not require separate software media or documentation with every license. Bulk purchasing lowers the cost per installation, and Microsoft is flexible on user rights and license agreement periods depending on the number of users or devices. Microsoft considers three main factors before selling Volume Licensing: size and type of organization, software products in question, and use-case scenarios. Volume Licensing is tailored to each particular organization depending on its niche industry and business characteristics. Different subscriptions can have different license assignments.
What are some of the common Microsoft 365 licensing options for organizations?
Microsoft 365 licensing has evolved with specific plans for government, education, frontline workers, small businesses, and enterprises. Most organizations choose these licenses for vital components such as Exchange Online, SharePoint Online, OneDrive for Business, and basic security capabilities. Business and Enterprise licenses have similar features, but the former targets small businesses while the latter is for larger organizations. Most organizations start with Office 365 E3 licenses for all employees, with some opting for E5 licenses to add extra capabilities. Microsoft 365 licensing includes Office 365 and Windows 10/11 licensing. Microsoft 365 Business licensing comes in four tiers: Basic, Apps for Business, Standard, and Premium. The more expensive the license, the more features it includes.
How does the Microsoft Intelligent Security Graph impact security measures within Microsoft licensing?
Microsoft spends over $1 Billion a year on security research and uses AI to interpret 6.5 trillion signals daily via the Intelligent Security Graph. Purchasing the correct Microsoft 365 license allows for access to combined risk intelligence and automation. Standardizing on Microsoft services allows for integration with the Microsoft Intelligent Security Graph, reducing false positives. It is recommended to sign up for a free cyber security assessment to review current licensing and create a strategic cyber security roadmap. Infused Innovations partners with KnowBe4, CyberArk, and SecPod to fill security gaps, but Microsoft’s 60+ security products cover most customers’ needs.