Microsoft offers a powerful suite of cloud-based tools designed to help businesses improve productivity, collaboration, and security. At the core is Microsoft 365, which bundles familiar apps like Word, Excel, and Outlook. Beyond the home, Microsoft licensing options offer enterprise-grade services such as Teams, cloud storage, and advanced security features.
While Office 365 includes only the core productivity apps, Microsoft 365 goes further by adding device management and cybersecurity capabilities. Other cloud-based offerings, like Microsoft Dynamics 365, provide integrated solutions that help organizations streamline operations and gain deeper insights across departments. What do all of these options mean for you and your business? Read on to learn more about navigating Microsoft licensing and how to determine a good fit for your organization.
What Is Microsoft Licensing?
Licensing is the legal framework that allows businesses to use Microsoft software without owning it outright. Instead of purchasing the software, organizations pay for the right to install, access, and run it under the terms set by Microsoft. These licensing rules define how many users/devices can use the software, where you can install it (on-premises or in the cloud), and what features are available. Understanding and following Microsoft’s licensing models is critical to staying compliant and avoiding costly penalties. It’s also helpful to understand what each license plan includes and doesn’t to ensure you’ve got the right tools for your employees.
Types of Microsoft Licensing Models
Microsoft offers quite s few licensing options. They aim to accommodate different business sizes, budgets, and IT environments. Each license is designed with a specific use case in mind—whether you’re purchasing a single device, equipping multiple employees, or managing a cloud-based environment. Understanding the differences can help businesses choose the most cost-effective and compliant option.
- Retail Licenses: These are best for individual users or small businesses, available off-the-shelf, and can typically move to a new device if necessary.
- Original Equipment Manufacturer (OEM) Licenses: This is often pre-installed licensing on new hardware. These licenses are tied to the device and cannot be transferred once activated.
- Volume Licenses: Ideal for mid-sized and large organizations as these licenses offer discounted pricing for bulk purchases. This license style usually includes license management and deployment support. For Microsoft specifically, volume licensing relates to operating systems. For example, volume licenses are for Microsoft operating systems like Windows 11, whereas a subscription license would be for Microsoft 365.
- Subscription Licenses: These are cloud licenses and billing is monthly or annual. Many companies offer subscription-based license services, like Netflix, Apple, Amazon, and Spotify. Microsoft subscription license plans, similar to other vendors, offer users access to updates and new features with their active license account.
Microsoft Licensing for Your Organization
For Microsoft software, it’s important to choose a licensing model that aligns with your organization’s structure and goals. Consider whether a per-user, per-device, or capacity-based plan best fits your workforce. Per-user licenses are ideal for employees who need access across multiple devices. Per-device plans may be more cost-effective for shared workstations in an office. Capacity-based options suit environments like call centers or remote desktops with access needs that change. You’ll also want to evaluate which features—such as security tools, cloud storage, or advanced collaboration apps—will deliver the most value to your team.
How an MSP Can Help
Managing Microsoft licensing can be complex, especially as your organization grows and your needs evolve. A managed service provider (MSP) can take the guesswork out of licensing. They guide you on choosing the right plans, stay compliant, and avoid overpaying for unused features. In addition to streamlining license management, an MSP can oversee the day-to-day administration of your Microsoft 365 environment. They can help in handling updates, user access, security settings, and more. By partnering with a trusted provider for your managed IT services, your organization can save time and money, while ensuring technology is aligned with business goals.
Microsoft Licensing with NetGain
NetGain offers expert support for Microsoft licensing and management as part of our comprehensive IT services solutions. Our Microsoft certified engineers ensures your organization is properly licensed, fully secure, and maximizing the value of Microsoft 365. We focus on tailored IT solutions to fit your business needs—helping you reduce costs, boost efficiency, and stay focused on what matters most.
