Supported Microsoft 365 license types

  • Release version: Zurich
  • Updated July 31, 2025
  • 2 minutes to read
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    Summary of Supported Microsoft 365 License Types

    The Microsoft 365 integration supports various license types that cater to different user scenarios, providing flexibility for businesses transitioning between on-premise and cloud-based solutions.

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    Key Features

    • Full USL: Grants full access to all features of Microsoft 365 for users without prior on-premise licenses or those transitioning to cloud-based services without Microsoft Software Assurance (SA) benefits.
    • From SA USL: Allows users with active SA benefits on an existing perpetual license to transition to a corresponding cloud-based version while retaining some SA benefits.
    • Add-on USL: Facilitates a trial of cloud-based Microsoft 365 services while still using the on-premise version, applicable for users with active SA benefits.
    • Step-up License: Enables upgrades from a lower to a higher edition of a Microsoft 365 product by only paying the price difference, protecting previous investments for users of lower editions.
    • Reserve License: Allows for advance license reservations for Microsoft 365 Online Services, helping in planning and provisioning resources without immediate purchase orders.

    Key Outcomes

    By understanding and utilizing the appropriate Microsoft 365 license type, customers can optimize their software investments, streamline transitions to cloud services, and effectively manage their licensing needs while maintaining compliance and maximizing functionality.

    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.