Microsoft Office Device-Based or User-Based License

Microsoft essentially has 2 types of Office licenses for the latest versions of the Office Suite. However, it is important to note some of the distinctions between the 2 different software programs. One of the major differences is the ability to use the cloud-based apps and integrations.

Office 2019 Home & Business – Device based license – $250 Perpetual

You can essentially think of this as Office 365 minus cloud features. You still have the usual office apps Excel, Word, PowerPoint, & Outlook. The benefit to this version is that you can have a domain-joined PC that multiple employees use and be able to recycle the license because only 1 user uses the device at 1 time.

Office 365 – Individual License $12.50 per user, per month

You can essentially think of Office 365 as Home and Business (2019 or latest version) + cloud features. Latest version because it would be based on the most recent base version.

That comes out to $150 per user annually. If comparing price-wise to office Home and business then looking at the release dates and time ranges between versions gives us a clue to the value.

Microsoft Office 2016 was released in 2015 and 2019 was released in 2018. Assuming that you upgrade your office version when a new one is released (for the most part this is best practice) Take 2018 – 2015 = 3 years. If H&B costs $150 * 3 years = $450. Everything is a better price than the H&B version until part way through the 2nd year where you will see a break-even if you went the H&B route. Since you’re taking a loss eventually with the O365 license it is important to be utilizing the value of the license such as one user with many devices and to be actively utilizing the cloud based features.

I’m only referring to the “Business Premium” which is now called “Business Standard” which it should have always been called since that was the minimum version to include the desktop apps. For a myriad of reasons I wouldn’t recommend the “Business Essentials” as well as the fact that it only provides the web apps.

This is a very good way to go if you have remote workers or a worker who works from the office and at home. In essence, the best scenario for this license is 1 user and many devices such as a Laptop, cell phone, and desktop. This is where you will see the most value from this license type. Although I have licensed specific users that only have 1 device due to the business need of that individual user to have access to specific cloud features such as SharePoint or OneDrive.

Here is a decision list for device or user based licensing. The first value is the number of users and the second value after the colon is the number of devices that user will use. M = many. For example, a one-to-many relationship is 1:M.

User(s):Device(s)

1:1

Get Microsoft Office Home and Business 2019

M:1

Get Microsoft Office Home and Business 2019

1:M

Get Office 365

M:M

Volume Based licensing of H&B or Office 365 for each user.

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