How does a Microsoft 365 subscription work?
Microsoft 365 is a per-user subscription service billed monthly or annually, where each user requires a license that can be assigned, reassigned, or managed as your business needs change.
Microsoft 365 is a subscription-based service where each user in your organization requires an individual license to access applications and services.
Subscriptions are billed either monthly or annually. Annual plans typically offer a lower price per user but require a longer commitment, while monthly plans provide more flexibility with slightly higher costs.
Licenses can be assigned to new users, reassigned when employees leave, or adjusted as your business grows. This allows companies to scale their usage based on actual needs.
Microsoft uses a licensing model called the New Commerce Experience (NCE), which defines how subscriptions are purchased, billed, and managed. Under this model, changes such as cancellations or reductions in licenses may be limited after a short initial period (usually 7 days).
This subscription approach ensures that your organization always has access to the latest versions of applications, ongoing updates, and cloud services without needing to manage traditional software installations or upgrades.