How does a Microsoft 365 subscription work?
How Microsoft 365 subscription works is fairly simple: a business buys a subscription for a plan, pays based on the number of users, and assigns a licence to each employee who needs access.
In the Microsoft 365 licensing model, the subscription belongs to the organisation and the licences are assigned per user. That means each employee gets access according to the plan they are licensed for, while an admin manages seats, billing, and payments in the Microsoft 365 admin center. Microsoft 365 is billed based on the selected business plan and the number of licences attached to the subscription. If your company hires more staff or needs fewer seats, an admin can buy more licences or remove them later. For small and mid-sized organisations, this structure makes it easier to match software access to real staffing needs instead of buying one fixed package for the entire business.