Microsoft 365 License Structure

The course is part of this learning path


In this course, we take a look at the licenses available for Microsoft 365 and what each offers.

Learning Objectives

  • Understand the differences between the Home, Business, Enterprise, and Education models
  • Understand the difference between different licensing “levels” within each subscription model
  • Explain what a cloud service provider is and its relationship to Microsoft and the organization

Intended Audience

This course is intended for users new to Microsoft 365.


To get the most out of this course, you should have an understanding of general technical concepts. 


Hello, and welcome to Microsoft 365 license structure. My name is Lee Mucciarone, and I'm a Microsoft 365 content creator for Cloud Academy. I have four years of IT experience working with Microsoft, and two years of specialized experience as a customer training specialist training users on Microsoft tools. Whenever someone asks me what is Microsoft 365, I always hesitate to answer. The reason for this is because there are so many different plans for Microsoft 365 and each provides a different variation on the standard office plan that we're all used to. 

With the new branding moving from Office 365 to Microsoft 365, it can truly be confusing when trying to understand exactly what Microsoft 365 is. Well, at its core, Microsoft 365 is a subscription plan that provides a suite of productivity tools and added management and security tools for organizations. Microsoft 365 currently comes in one of four different flavors. Microsoft 365 Home, which is the personal version. Microsoft 365 for Business, Microsoft 365 for Enterprise, and Microsoft 365 for Education. 

Each of these different flavors also has different licenses that provide access to different tools in the Microsoft 365 suite. I generally find that the struggle when learning about Microsoft 365 isn't learning the software,  but rather learning what is available within Microsoft 365, due to the sheer amount of tools you receive from a subscription. This course was made to help you understand exactly what Microsoft 365 is and what it can mean for you, your organization, or your school. By the end of this course you should be able to: understand the differences between home, business, enterprise, and education type models, understand the difference between different licensing levels within each subscription model, and explain what a Cloud Service Provider is in their relationship to Microsoft and the organization. With our goals clearly defined, let's start off talking about the different licenses in Microsoft 365.


About the Author
Learning Paths

Lee has spent most of his professional career learning as much as he could about PC hardware and software while working as a PC technician with Microsoft. Once covid hit, he moved into a customer training role with the goal to get as many people prepared for remote work as possible using Microsoft 365. Being both Microsoft 365 certified and a self-proclaimed Microsoft Teams expert, Lee continues to expand his knowledge by working through the wide range of Microsoft certifications.