When Microsoft combined Office 365 with Windows 10 licensing to create the rebranded MS 365, they also introduced new User Subscription Licenses (USLs) to accommodate business customers with various needs. Since 2017, these USLs have been modified multiple times.

The three iterations currently in use are Full USL, Add-on USL, and Step-up USL. Licensing is based on a per-user model for both personal and business use.

A USL Overview

As an organization specializing in Microsoft 365 licensing support, we have the opportunity to work with organizations that find Microsoft licensing highly confusing. We help organizations sort out the various licenses to ensure they are getting exactly what they need. Without that in mind, let us look at Microsoft three USLs a bit more closely.

1. The Full USL

Microsoft says that the Full USL is "for new customers who haven't previously purchased a corresponding solution from Microsoft and for on-premises software customers who don't have Software Assurance." Most of the time this means business and enterprise customers delving into MS 365 for the first time.

An ideal use case for the Full USL would be an organization transitioning from an on-premises office solution to cloud services. These are organizations that do not have existing Microsoft licenses. Going with the Full USL gives an organization complete access to all Microsoft 365 services without the need for any additional licenses.

2. The Add-On USL

Microsoft's Add-on USL is for "on-premises software customers who want to try a Microsoft 365 cloud solution without giving up their on-premises solution or who are not ready to fully transition to the cloud." The company goes on to say that the Add-on USL offers all the benefits of MS 365 at a lower price. However, there are requirements.

In particular, a customer must have active Software Assurance for their current on-premises solution with eligible MS software. The Add-on USL must be purchased via the same enrollment pertaining to said software.

A typical use case for the Add-on USL would be an organization wanting to look into cloud services without having to pay for the more costly Full USL. The organization can continue maintaining its on-premises solution but still enjoy all the benefits of MS 365 in the cloud.

3. The Step-Up USL

Finally, the Step-up USL is intended for "customers who want to upgrade the level of their service during the term of the enrollment or agreement. These licenses must be purchased on the same agreement or enrollment as the base license from which the customer is upgrading."

A customer choosing this particular USL will likely be upgrading from a lower tier of a Microsoft product to a higher one. The organization essentially pays the price difference between the two tiers. Doing so offers the opportunity to upgrade for more features without paying the full price of starting over.

Opkalla Is Here to Help

What we have described here is just the beginning of Microsoft 365 USLs. Dig into the details and it becomes clear that there is plenty to know about MS 365 licensing. The good news is that your organization doesn't have to go it alone. Opkalla is here to help with expert consulting and licensing management services.

Microsoft 365 licensing can be complicated. As an organization adds both services and users, the challenges of maintaining compliance become more difficult. If you are struggling with your licensing, or you are new to Microsoft 365 and don't know where to go from here, do not hesitate to contact us. We can get you up and running in no time.

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