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Microsoft 365 and Online Services licensing

This article covers Microsoft 365, Office 365, and Online Services subscription meters named in Product Terms (User SL, Device SL, Frontline eligibility, Unattended License, Windows 365 Cloud PC, Power Platform, storage, Communication Credits, and CAL equivalency). It is not legal advice. Contractual source of truth is live Product Terms. Guidance pages and licensing-guide PDFs are educational and do not supersede Product Terms. Windows Server and SQL Server software meters live on sibling encyclopedia pages.

On This Page

Microsoft 365 and Online Services licensing is how Microsoft sells hosted services: a User SL assigned to one Licensed User, or access only through a Device SL on a Licensed Device, unless Online Service-specific Terms say otherwise.[1] Suite names (F1, E3, E5, E7, A3, A5, Business Basic/Standard/Premium) are editions of that User SL, not extra meters.[2] Frontline Worker License is an assignment-eligibility overlay.[1][2] CAL Equivalent License maps listed User SLs to Base/Additive CALs and Management Licenses on Customer’s Licensed Servers.[2][3] Microsoft 365 User SL is not a SQL CAL and is not an RDS CAL.[3]

Editions

Product Terms Glossary: a suite is licensed under a single License assigned to a single user or device, and allows use of all of its components on that device or by that user. Components may not be separated.[2] Covered Suites include Microsoft 365 Business Basic, Business Standard, Business Premium, Office 365 E1/E3/E5, Microsoft 365 E3, E5, E7 and any successor or substantially equivalent versions.[2] (no Teams) Suites are the corresponding suites that exclude Microsoft Teams.[2]

F1, F3, E3, E5, E7, A3, A5, G3, G5, and Business Basic/Standard/Premium are not separate meters. They are User SL (or Device SL for A1 for Devices). Microsoft 365 E7 is a suite (E5 + Copilot + Agent 365 + Entra Suite), still User SL.[5] Frontline products are designated with F, FLW, or Frontline.[2]

Subscription License Suites in Product Terms did not render at retrieval; suite composition is quoted from educational Subscription Suites licensing guidance and is labeled educational where used.

Metrics

The catalog has twenty-three rows for Microsoft Online Services, each under its Product Terms name. Suite editions are not separate meters, and Power Automate per user, per flow, unattended RPA, and Process are distinct meters.

# Microsoft name Catalog row Unit What Microsoft says 
1 User SL User SL User Each user that accesses the Online Service must be assigned a User SL, or access it only through a Device SL, unless product terms say otherwise. Multiplexing does not reduce count. Reassignment not within 90 days. Business Basic/Standard/Premium: not more than 300 user subscription licenses.[1][16] 
2 Device SL Device SL Device Device-Based Subscription License: one OSE on the Licensed Device (or remote from it). Internet at least every 90 days. Named on Apps for enterprise, A1 for Devices, Intune Plan 1 for Devices, Teams Rooms, Teams Shared Devices. Device SL is not offered for every suite.[2][6][5][10][11] 
3 Frontline Worker License Frontline Worker License User Eligibility overlay, not a second seat meter. Assign only if primary work device screen is smaller than 10.9 inches, or the device is shared as primary work device with other Frontline-licensed users. Windows 365 Frontline is exempt.[1][8] 
4 Student Use Benefit Student Use Benefit Other No-charge student licenses at 1:15 or 1:40. May not count toward minimum orders. Expire when the Student leaves. Not eligible for SA Benefits. Most CAL/ML rows are not satisfied except ATA 2016 and Endpoint Configuration Manager.[2][4][3] 
5 Cloud Add-on to SA Cloud Add-on to SA User User SL purchased in addition to a Qualifying License with Active SA, assigned to a Qualified User. No new From SA SLs; existing From SA SLs may be renewed (Apps Product Terms).[2][6] 
6 Step-up Step-up User License purchased in addition to a previously acquired base license. Equivalent full User SL terms apply if the Step-up User SL is not listed individually.[2] 
7 Microsoft 365 Unattended License (SL) Microsoft 365 Unattended License (SL) Other Microsoft uses (SL), not (User SL). Assigned to an Unattended Bot: one unique physical or virtual OSE; one unique instance of Apps for enterprise. Distinct from User SL and from Power Automate unattended RPA.[5] 
8 Windows 365 Windows 365 User Assigned to a Licensed User. Business maximum 300. Frontline Dedicated: up to 3 Cloud PCs provisioned, only 1 used. Frontline Shared: 1 Cloud PC, one concurrent user. Not Windows 365 for Agents (First-Party Consumption Service). Hybrid Benefit EOL 1 May 2026.[8][17][12][13] 
9 Power Apps Per App Power Apps Per App Other Per-app, not per-user. 1 Power Page per Power Apps per app. It is not a User SL.[9] 
10 Power Apps plan (User SL) Power Apps plan (User SL) User Power Apps plan / Premium (User SL). 2000 Seat Minimum SKU must keep that quantity through the term. Unlimited Power Pages for per user.[9] 
11 Power Automate per user (User SL) Power Automate per user (User SL) User Includes per user with attended RPA and Premium (User SL) as named. Distinct from per flow and unattended RPA.[9] 
12 Power Automate per flow plan Power Automate per flow plan Other Minimum QTY 5. Not User SL.[9] 
13 Power Automate unattended RPA Add-on (SL) Power Automate unattended RPA Add-on (SL) Other Prerequisite: Power Automate Premium per user or per flow plan. Not the Microsoft 365 Unattended License.[9] 
14 Power Automate Process Power Automate Process Other Process, Hosted Process add-on, and Process Mining Add-on. Process Mining prerequisite: Premium per user.[9] 
15 Power BI Pro Power BI Pro User Availability table does not suffix (User SL). Per-user Power BI. Publishing shared reports on Report Server requires Pro.[9] 
16 Power BI Premium (User SL) Power BI Premium (User SL) User Per-user Premium. Add-On prerequisite: Pro or Microsoft 365 E5/A5/E7 or Office 365 E5/A5.[9] 
17 Power BI Premium P Power BI Premium P Other Capacity. Report Server cores are a capacity entitlement, not SQL Per Core. Embed API viewing in capacity does not require a User SL.[9] 
18 Dataverse Capacity Dataverse Capacity Other Database / File / Log Capacity. Database (1 GB) purchasing minima: Tier 1 = 1, Tier 2 = 1000.[9] 
19 Power Pages capacity Power Pages capacity Other Authenticated pack minima 1 / 100 / 1000. Anonymous 1 / 20 / 200.[9] 
20 Power Platform Requests add-on Power Platform Requests add-on Other Capacity add-on, not User SL.[9] 
21 Office 365 Extra File Storage 1 GB (Add-on SL) Office 365 Extra File Storage 1 GB (Add-on SL) Other SharePoint Online overage, unit 1 GB. Intune Storage Add-on SL is the same 1 GB overage construct for Intune.[18][10] 
22 CAL Equivalent License CAL Equivalent License Other A User SL or External Connector identified in Server Software Access, or a CAL suite or SL in CAL and ML Equivalency Licenses. A CAL suite counts only if purchased after Date Available or SA was active then. Blank cells do not satisfy.[2][3] 
23 Communication Credits Communication Credits Other Prepaid audio construct, not User SL. Unused funds forfeit after 12 months. Calling Plan / Audio Conferencing remain User SL.[11] 

Microsoft 365 Copilot (User SL), Copilot for Sales/Service (User SL), and Agent 365 (User SL) use the User SL meter with product-specific prerequisites.[5][12] They are not separate metrics. Copilot Chat is named under First-Party Consumption Services (Azure meters).[2] Copilot Studio capacity is sold as Copilot Credits; See Microsoft 365 Copilot licensing.

Counting and floors

  • User SL vs Device SL. One User SL per user who accesses or benefits, unless access is only through a Device SL. Licensed User is the single person to whom a License is assigned. Licensed Device is a single physical hardware system (a hardware partition or blade is a separate device).[1][2]
  • 90-day reassignment under Universal License Terms for Online Services, except user absence or device out of service. Replacing a Windows 365 Business/Enterprise SKU is not reassignment.[1][8]
  • 300-SL cap on Microsoft 365 Business Basic/Standard/Premium (and, from 15 June 2026, Apps for business and Teams Essentials under those terms). Windows 365 Business maximum 300.[16][13][17]
  • Apps User SL: up to five concurrent OSEs; internet every 30 days; 5 smartphones and 5 tablets. Apps Device SL: one OSE; internet every 90 days. Device SLs do not support shared computer activation (Apps licensing guidance, educational).[6]
  • Intune User SL: up to fifteen devices. Management of a device accessed by more than one user requires a User SL for each user.[10]
  • Frontline. Screen smaller than 10.9 inches or shared primary work device. Windows 365 Frontline is not subject to that eligibility rule.[1][8]
  • Student Use Benefit ratios. 15: Entra ID P1/P2, ATA, Intune for Education, Minecraft Education, Defender for Office 365 P1/P2, Apps for enterprise. 40: Microsoft 365 Education A3/A5, EMS A3/A5, Office 365 A3/A5, Windows Education A3/A5 per user, Defender Suite for Education.[4]
  • Power Automate per flow: minimum QTY 5. Power Apps 2000 Seat Minimum: maintain 2000 through the term.[9]
  • Windows Server 16-core and SQL 4-core floors do not apply to Microsoft 365.

CAL and ML equivalency

Source: Product Terms — CAL and ML Equivalency Licenses (current publication, retrieved 31 August 2026). X means satisfies. Blank means does not.[3]

CAL / ML (Subscription Edition / 2025) M365 F1/F3 M365 E3 M365 E5/E7 O365 E1/E3/E5 
Exchange SE Base + Additive  X X Base on E1; Additive on E3/E5 [3] 
SharePoint SE Base + Additive  X X Base on E1; Additive on E3/E5 [3] 
Skype SE Base + Additive (Enterprise)  X X X (including E1 Additive Enterprise) [3] 
Skype SE Additive (Plus)   X E5 only [3] 
Windows Server 2025 Base + Additive RMS/MIM X X X No Windows Server column [3] 
ATA 2016 ML; Endpoint Configuration Manager; SCEP 1606; SCSM X X X [3] 

F1/F3 does satisfy Windows Server 2025 Base and Additive RMS/MIM and the listed Management Licenses. F1/F3 does not satisfy Exchange, SharePoint, or Skype CALs. Only E5/E7 satisfies Skype Plus CAL. Office 365 has no Windows Server CAL column — that equivalency comes from EMS or Microsoft 365, not from O365 alone. Microsoft 365 User SL ≠ SQL CAL; ≠ RDS CAL (neither appears in the Microsoft 365 columns). A1 does not satisfy. Student Use Benefit users do not satisfy except ATA 2016 and Endpoint Configuration Manager.[3]

CAL Suite Bridges are User SLs acquired so the number of Bridge User SLs matches the qualifying Online Service User SLs.[3] They are companions, not Microsoft 365 meters. See Windows Server licensing and SQL Server licensing.

Virtualization

Online Services User SLs are not hypervisor, socket, or core-factor meters. Apps User SL permits up to five concurrent OSEs. Unattended License is per unique physical or virtual OSE.[5] Windows 365 provisions a Cloud PC to a Licensed User; Frontline Dedicated/Shared change how many Cloud PCs may be provisioned and used.[8] Windows 365 is not licensed as Windows Server Per Core/CAL. Azure Virtual Desktop access rights that travel with Microsoft 365 User SLs are described in Windows Desktop Operating System Product Terms; they are not a second Microsoft 365 Windows meter.[19]

Cloud / BYOL

These products are Online Services under Product Terms. First-Party Consumption Services (Glossary) are Azure meters and include certain Power Platform, Dynamics 365, Microsoft 365 Copilot Chat, Dragon Copilot, W365 for Agents, and GitHub meters.[2] Azure PAYG SKU IDs and rates are not covered here. Windows 365 for Agents, when enabled, is metered as a First-Party Consumption Service.[12]

Programs

  • Product Terms (live web). Latest listed change at retrieval: 10 August 2026.[13]
  • EA / EAS / MCA / MOSA / MPSA / EES availability tables differ (example: Windows 365 Business and the 300-license cap appear on MCA).[16][17]
  • Cloud Add-on to SA and Step-up ride on qualifying base licenses. From SA SLs: no new purchases; renewals only (Apps Product Terms).[2][6]
  • CAL Suite / CAL Suite Bridge remain on-prem companions. They are not Microsoft 365 meters.

Buying programs and list prices are not catalog units.

Out of scope

  • Windows Server Per Core/CAL, User CAL, Device CAL, Base CAL, Additive CAL, External Connector — Phase 2 catalog; see Windows Server encyclopedia.
  • SQL Server Per Core and Server/CAL — see SQL Server encyclopedia. Microsoft 365 User SL does not satisfy SQL CAL.
  • RDS CAL (Additive). Not in the Microsoft 365 equivalency table.
  • SPLA / SAL / Subscriber as a meter for these products.
  • Security Copilot SCU quantity; Copilot Credits (covered separately); list prices.
  • Suite edition names as extra meters.

Catalog rows

Sample catalog rows for this article, grouped by table.

References

  1. Universal License Terms for Online ServicesUser SL / Device SL assignment; Frontline eligibility; multiplexing; 90-day reassignment.Retrieved 2026-08-31.
  2. GlossarySL; Licensed User / Licensed Device; Frontline Worker License; Student Use Benefit; Cloud Add-on to SA; Step-up; Suite; CAL Equivalent License; Copilot; First-Party Consumption Services.Retrieved 2026-08-31.
  3. CAL and ML Equivalency LicensesWhich User SLs satisfy which Base/Additive CALs and Management Licenses.Retrieved 2026-08-31.
  4. Student Use Benefits and Academic Programs1:15 and 1:40 ratios.Retrieved 2026-08-31.
  5. Microsoft 365 product offeringUser SL suites, Frontline list, Copilot prerequisites, Unattended License, F3 device rules.Retrieved 2026-08-31.
  6. Microsoft 365 ApplicationsUser SL and Device-Based Subscription License for Apps.Retrieved 2026-08-31.
  7. Office 365 SuitesUser SL suites; Office 365 F3 Frontline.Retrieved 2026-08-31.
  8. Windows 365Cloud PC assignment; Frontline Dedicated/Shared; Business 300 cap on MCA.Retrieved 2026-08-31.
  9. Microsoft Power PlatformPer-user / per-app / per-flow / capacity floors.Retrieved 2026-08-31.
  10. Microsoft IntuneUser SL (15 devices) and Device SL.Retrieved 2026-08-31.
  11. Audio ServicesTeams Phone User SL; Rooms / Shared Devices Device SL; Communication Credits.Retrieved 2026-08-31.
  12. Agent 365Agent 365 User SL; W365 for Agents consumption.Retrieved 2026-08-31.
  13. Summary of ChangesLatest listed change 10 August 2026; Hybrid Benefit EOL 1 May 2026; Security Copilot with E5 1 January 2026.Retrieved 2026-08-31.
  14. Microsoft 365 Enterprise Licensing GuidanceEducational; does not supersede Product Terms.Retrieved 2026-08-31.
  15. Power Platform Licensing Guide (May 2026)Educational.Retrieved 2026-08-31.
  16. Microsoft 365 product offering (MCA)300 user subscription license cap on Business Basic/Standard/Premium, Apps for business, Teams Essentials.Retrieved 2026-09-26.
  17. Windows 365 (MCA)Customer may not acquire more than 300 Windows 365 Business.Retrieved 2026-09-26.
  18. SharePoint OnlineOffice 365 Extra File Storage required per GB in excess of SharePoint Online storage.Retrieved 2026-09-26.
  19. Windows Desktop Operating SystemAzure Virtual Desktop access rights for Microsoft 365 E3/E5/E7/F3/Business Premium/A3/A5 users.Retrieved 2026-09-26.

See also

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