Microsoft 365 User vs. Device Licensing:
- User Licensing: One license covers multiple devices for a single user.
- Device Licensing: One license covers multiple users on a single shared device.
- Ideal for Mobility: User licensing suits individuals needing access on different devices.
- Shared Environments: Device licensing is best for shared workstations or kiosks.
Microsoft 365 Licensing Options
Microsoft 365 offers two primary licensing models user-based licensing and device-based licensing. Choosing the right option is crucial for organizations looking to balance cost, flexibility, and productivity.
Each model is designed to fit different business scenarios, whether you need software accessible for an individual user across multiple devices or shared across a single device used by multiple individuals.
Explore how these licensing options can help your organization maximize productivity while staying cost-effective. With Microsoft 365, your choice of licensing can greatly influence how your team works, ensuring that employees have the right access at the right time.
Example: A call center with rotating staff may prefer device licensing, whereas a marketing firm with remote workers might benefit more from user licensing.
What is User Licensing?
User Licensing in Microsoft 365 means a single license is assigned to an individual user. This user can then use Microsoft 365 apps on multiple devices, such as laptops, tablets, and smartphones.
This type of licensing is extremely flexible and works well for employees who need access to their applications on various devices, regardless of their location.
Key Benefits of User Licensing:
- Multi-Device Access: One license covers multiple devices (e.g., laptop, desktop, smartphone).
- Ideal for Remote Work: Suitable for users who need mobility and access to applications from different locations.
- Personalized Experience: Users have their personalized settings and preferences saved across all devices.
Use Cases for User Licensing:
- Knowledge Workers: Employees who use multiple devices throughout the workday, such as laptops in the office and tablets at home.
- Remote Teams: Companies with a mobile workforce need access to files and applications on multiple devices.
- Sales Teams: Sales representatives are often on the road and must work from various locations.
Example: A sales executive who needs access to Microsoft Teams, OneNote, and Excel from a laptop and mobile device would benefit from a user-based license as it allows seamless transition between different devices.
What is Device Licensing?
Device Licensing means a license is assigned to a specific device rather than a person. This type of licensing is often used in environments where multiple individuals share the same workstation, such as in schools, libraries, or customer service desks.
Each licensed device can be accessed by any number of users, making device licensing practical in shared environments.
Key Benefits of Device Licensing:
- Cost-Effective for Shared Environments: One license per device means that multiple users can access the software from that device without additional licenses.
- Simplified Management: Administrators only need to manage licenses based on the number of devices rather than the number of users.
- Consistency: Users have the same tools available on their devices, which can be ideal for environments like labs or kiosks.
Use Cases for Device Licensing:
- Call Centers: A call center where agents work in shifts using the same computers.
- Schools and Libraries: Devices used in computer labs or shared environments where many students or visitors need access.
- Retail and Customer Service Kiosks: Devices used by different employees for customer interactions or self-service stations.
Example: In a school computer lab, device licensing allows every student to use Microsoft Word or Excel on a single licensed device without needing individual licenses for each student.
Comparison: User Licensing vs. Device Licensing
When choosing between user licensing and device licensing, understanding the key differences helps make an informed decision.
Below is a comparison of the two models based on several important factors:
1. Accessibility
- User Licensing: Provides access on multiple devices; suitable for users who need mobility.
- Device Licensing: Limits access to a single device but allows multiple users to share that device.
2. Cost
- User Licensing: Typically more cost-effective if each user needs access to several devices.
- Device Licensing: Cheaper for shared environments where several users need access but only on a limited number of devices.
3. Ideal Environment
- User Licensing: Best for businesses with remote employees, executives, and mobile workers.
- Device Licensing: Best for schools, libraries, call centers, or other shared-use environments.
4. Personalization
- User Licensing: Provides a personalized experience with settings and documents synced across devices.
- Device Licensing: Offers a consistent but generic experience across users.
Example: In a healthcare setting, device licensing may be used for shared workstations where nurses access patient data, while doctors may have individual user licenses to access sensitive information across various devices.
When to Choose Device Licensing
Device Licensing is ideal when:
- Shared Workstations: Devices are shared among users in environments like schools, computer labs, or retail stations.
- Cost Savings is a Priority: When cost considerations are paramount, device licensing is more cost-effective if there are many users but few devices.
- Simplified License Management: Where IT administrators prefer to manage licenses based on a fixed number of devices rather than individual users.
Example: A library with 30 public-access computers would benefit from device licensing, as it reduces the number of licenses needed compared to assigning a user license to each visitor.
When to Choose User Licensing
User Licensing is ideal when:
- Mobility is Required: Employees need access to applications on multiple devices such as laptops, tablets, and mobile phones.
- Individual Workstations: Users work from their own devices and require personalized settings and seamless access to files across multiple environments.
- Remote and Hybrid Work: Companies with a distributed workforce benefit greatly from user licenses, which allow employees to use their software from home, the office, or on the move.
Example: A remote marketing team that uses laptops, tablets, and mobile phones would find user licensing more efficient, as each team member can work from any device without restrictions.
Cost Considerations
Evaluating Total Cost of Ownership (TCO) is critical when deciding between user and device licensing.
Both licensing models have different cost implications based on usage patterns, the number of users, and how many devices are involved:
- User Licensing Costs are more suitable for situations where each user requires access across multiple devices. While the per-user cost may be higher, the flexibility to use multiple devices makes it cost-effective for certain roles.
- Device Licensing Costs: Works well for environments where multiple people use a single device. Since the cost is attached to the device, the more users per device, the lower the average cost per user.
Example: A small company with ten employees, each working from a laptop, tablet, and phone, may find user licensing more economical. In contrast, a call center with 50 agents and 20 shared computers would see significant cost savings with device licensing.
Microsoft 365 User vs. Device Licensing FAQ
What is the difference between user and device licensing?
User licensing covers one user on multiple devices, while device licensing restricts access to a single device shared by different users.
Who should choose user licensing?
User licensing is best for employees who need access to Microsoft 365 on multiple devices, such as desktops, laptops, and mobile devices.
When is device licensing more suitable?
Device licensing works well in environments where multiple people share a single device, like shared workstations or kiosks.
Can a user with device licensing access Microsoft 365 from home?
No, device licensing only restricts access to the licensed device, so users cannot access it from personal or home devices.
How is user licensing managed?
User licensing is managed per user, allowing access across devices like laptops, smartphones, and tablets.
How does device licensing handle security?
Device licensing provides security at the device level, ensuring that only the licensed device can access Microsoft 365.
Can I mix user and device licenses in my organization?
Yes, organizations and government entities can use both licensing types depending on their specific needs and the roles of different employees.
What Office apps are available with device licensing?
Device licensing includes the same Office apps as user licensing, but access is limited to the licensed device.
How does user licensing support remote work?
User licensing allows employees to access Microsoft 365 from any device, making it ideal for remote work scenarios.
Can multiple users log in on a single device under device licensing?
Yes, multiple users can access Microsoft 365 on the same device as long as the device is licensed.
What industries typically use device licensing?
Industries with shared computers, such as healthcare, retail, or education, often use device licensing for workstations.
Is device licensing available for mobile devices?
Device licensing typically covers fixed devices like desktops and shared laptops, not mobile devices.
Can users switch between devices with user licensing?
With user licensing, employees can switch between devices, accessing Microsoft 365 on any authorized device.
What happens if a company wants to switch from device to user licensing?
Organizations can easily switch between licensing models based on changing needs, managed through their Microsoft admin center.
Is user or device licensing more cost-effective?
Cost depends on your organization’s needs. User licensing is ideal for individual mobility, while device licensing is better for shared environments.
