Written by Abe Hammat – Customer Success Account Manager
Microsoft licensing can be confusing, and honestly, a little tedious to figure out. One thing many people do not realize is that Microsoft does not base every license on a user. In some cases, Microsoft ties the license to the device itself, and that license stays with the device throughout its lifecycle.
So, the easiest way to understand which Microsoft licensing model you need comes down to one simple question:
Are you licensing a person or a computer?
What Is User-Based Licensing?
User-based licensing is what most people think of when they think about Microsoft licenses. With this model, you assign the license to a specific person. That person signs in with their Microsoft account and can use the license across multiple devices.
Because the license follows the user, this model works well for employees who need flexibility. For example, if someone works from a laptop, desktop, and mobile device, user-based licensing gives them access wherever they sign in.
As a result, user-based licensing is a good fit for organizations that rely on cloud collaboration, remote work, and personal Microsoft accounts.
When User-Based Licensing Makes Sense
User-based licensing may be the better option when:
- Everyone has their own login
- Everyone has their own device
- Your team relies on cloud collaboration
- Users need access from different locations
- Employees move between multiple devices during the day
In these situations, the license should follow the person, not the machine.
What Is Device-Based Licensing?
Device-based licensing works differently. Instead of assigning the license to a person, you assign it to a specific computer. Anyone who uses that computer can access the licensed software, and the license stays with the device.
This model works well when multiple people share the same machine. For example, labs, kiosks, training rooms, and task-focused workstations often have rotating users throughout the day. In those cases, it may not make sense to license every individual person.
Instead, device-based licensing allows the organization to license the computer that people use to complete the work.
When Device-Based Licensing Makes Sense
Device-based licensing may be the better option when:
- Multiple people share the same machines
- Accounts are not tied to individual users
- Systems support specific tasks, such as labs, kiosks, or training stations
- Users do not need cloud access from multiple locations
- People rotate through the same computers throughout the day
In these environments, the license should stay with the computer, not the person using it.
Choosing the Right Microsoft Licensing Model
User-based and device-based licensing both have their place. However, they serve very different needs.
User-based licensing works best when people need access from anywhere. Device-based licensing works best when many people use the same shared machine.
Ultimately, the best Microsoft licensing model depends on how your environment actually runs. Sometimes the right solution is not adding more features or buying more licenses. It is choosing the licensing model that fits the way your team works.ion isn’t adding more features. It’s choosing the model that actually fits how your environment runs.