Supported Microsoft 365 license types

  • Release version: Yokohama
  • Updated January 30, 2025
  • 2 minutes to read
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    Summary of Supported Microsoft 365 License Types

    The Microsoft 365 integration supports several user subscription license types, each designed for different scenarios to help you manage your transition to cloud-based services effectively. Understanding these licenses is essential for optimizing your Microsoft 365 usage and ensuring compliance.

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    Key Features

    • Full USL: Provides complete access to all features of Microsoft 365. Ideal if you haven't purchased any on-premise licenses and wish to fully transition to the cloud.
    • From SA USL: Useful for customers transitioning from an on-premise product to a cloud-based service while retaining certain Software Assurance benefits. Requires an active perpetual license.
    • Add-on USL: Allows you to test cloud capabilities while still using the on-premise version. This license is available for those with a perpetual license and active Software Assurance benefits.
    • Step-up License: Enables upgrading from a lower edition of a Microsoft 365 product to a higher edition at a reduced cost. You only pay the difference in price, thus protecting your initial investment.
    • Reserve License: Facilitates advance planning for additional Microsoft 365 Online Services resources without creating a purchase order. This is relevant for customers with existing licenses for these services.

    Key Outcomes

    By understanding and utilizing the appropriate Microsoft 365 license types, you can ensure a smoother transition to cloud services, cost-efficiency in upgrades, and effective resource planning for your organization. This knowledge enables you to maximize the benefits of Microsoft 365 while maintaining compliance with licensing agreements.

    The Microsoft 365 integration supports various Microsoft 365 license types

    Full USL

    A Microsoft 365 Full USL is a user subscription license that provides full access to all features and capabilities of a Microsoft 365 subscription software product or service. You can use this license type under the following scenarios:
    • If have not already purchased licenses for any on-premise Microsoft 365 subscription software products or services.
    • If you want to transition from an on-premise to cloud-based Microsoft 365 subscription software product or service without using Microsoft Software Assurance (SA) benefits.

    From SA USL

    A Microsoft 365 From SA USL is a user subscription license that enables you to transition from a perpetual on-premise Microsoft software product or service to a corresponding cloud-based Microsoft 365 subscription software product or service, while maintaining certain Microsoft SA benefits. You can use this license type if you have already purchased a perpetual license for an on-premise Microsoft software product or service with active SA benefits.

    Add-on USL

    A Microsoft 365 Add-on USL is a user subscription license that enables you to try the features and capabilities of a cloud-based Microsoft 365 subscription software product or service while you are actively using the perpetual on-premise version of that product or service. With this license type, you can try the cloud version of a Microsoft software product or service without having to fully transition to the cloud. You can use this license type if you have already purchased a perpetual license for an on-premise Microsoft software product or service with active SA benefits.

    Step-up license

    A Microsoft 365 Step-up license enables you to upgrade a lower edition of a Microsoft 365 subscription software product or service to a higher edition without having to pay the additional full price for the higher edition. When you upgrade a software product or service through this license type, you are required to pay only the price difference between the lower and higher editions, thereby preserving your initial investment into the lower edition. You can use this license type if you have already purchased the license for a lower edition of a Microsoft 365 subscription software product or service. For more information on Step-up licenses, see Software license maintenance.

    Reserve license

    A Microsoft 365 reserve license enables you to place a license reservation order for a Microsoft 365 Online Services product. With a license reservation order, you can plan and provision additional resources for a Microsoft 365 Online Services product ahead of time without having to create a corresponding purchase order. All license reservation orders are realized during your true-up or annual order process. You can use this license type if you have already purchased a license for a Microsoft 365 Online Services product.