Understand subscriptions and licenses in Microsoft 365 for business

• 07/01/2020
• 2 minutes to read
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When you buy a subscription to Microsoft 365 for business, you sign up for a set of apps and services that you pay for on either a monthly or an annual basis. The applications and services that you receive as part of your subscription depend on which product you purchased, such as Microsoft 365 Apps for business or Microsoft 365 Business Standard. You can see what comes with each product on the Microsoft 365 for small and medium-sized businesses page.

When you buy a subscription, you specify the number of licenses that you need, based on how many people you have in your organization. After you buy a subscription, you create accounts for people in your organization, and then assign a license to each person. As your organizational needs change, you can buy more licenses to accommodate new people, or reassign licenses to other users when someone leaves your organization.

If you have more than one subscription, you can assign licenses to different people for each subscription. For example, you can assign all of your users to all Microsoft 365 applications and services as part of a Microsoft 365 Business Standard subscription. You can also assign a subset of users to Visio Online through a separate Visio subscription.

How many devices can people install Office on?

If your subscription includes any of the following products, each person can install Office on up to five PCs or Mac, five tablets, and five phones.

What happens when you assign a license to someone?

The following table lists what automatically happens when you assign a license to someone:

Understand licenses for non-user mailboxes

You don't need to assign licenses to resource mailboxes, room mailboxes, and shared mailboxes, except when they are over their storage quota of 50 gigabytes (GB). For more about non-user mailboxes, see the following articles:

• Create a shared mailbox
• Remove a license from a shared mailbox
• Shared Mailboxes in Exchange Online for all other Microsoft 365 plans.

Who can assign licenses?

Different types of admins can work with licenses in different ways, depending on their roles. The following table lists the most common options. For a complete list of admin roles and privileges, see About admin roles.

Related content

Buy or remove licenses for your business subscription (article)
Assign licenses to users (article)
Unassign licenses from users (article)
Remove a license from a shared mailbox (article)