{"id":59477,"date":"2025-06-12T11:05:00","date_gmt":"2025-06-12T09:05:00","guid":{"rendered":"https:\/\/www.schneider.im\/?p=59477"},"modified":"2025-06-12T11:10:27","modified_gmt":"2025-06-12T09:10:27","slug":"microsoft-add-on-licensing-greater-flexibility-for-non-sa-add-ons","status":"publish","type":"post","link":"https:\/\/www.schneider.im\/lu\/microsoft-add-on-licensing-greater-flexibility-for-non-sa-add-ons\/","title":{"rendered":"Microsoft Add-on Licensing: Greater Flexibility for Non-SA Add-ons"},"content":{"rendered":"<p style=\"text-align: justify;\">Effective July 1, 2025, Microsoft has updated the Universal License Terms for Online Services to clarify the purchasing rules for <strong>Cloud Add-ons to Software Assurance (SA).<\/strong> This change refines the interpretation of <strong>which Add-ons must be purchased under the same licensing agreement as their base license.<\/strong><\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" class=\"aligncenter wp-image-59483 size-full\" src=\"https:\/\/www.schneider.im\/media\/2025\/06\/SCHNEIDER-IT-MANAGEMENT-2025-06-12-Update-Microsoft-Add-ons-1.png\" alt=\"\" width=\"545\" height=\"540\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/06\/SCHNEIDER-IT-MANAGEMENT-2025-06-12-Update-Microsoft-Add-ons-1.png 545w, https:\/\/www.schneider.im\/media\/2025\/06\/SCHNEIDER-IT-MANAGEMENT-2025-06-12-Update-Microsoft-Add-ons-1-500x495.png 500w, https:\/\/www.schneider.im\/media\/2025\/06\/SCHNEIDER-IT-MANAGEMENT-2025-06-12-Update-Microsoft-Add-ons-1-150x150.png 150w\" sizes=\"(max-width: 545px) 100vw, 545px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>What are the Universal License Terms for Online Services?<\/strong><\/h2>\n<p style=\"text-align: justify;\">The <strong>Universal License Terms for Online Services<\/strong> define the general terms and conditions under which Microsoft Online Services are licensed. These terms <strong>apply across various licensing programs and agreements<\/strong>, including Enterprise Agreements (EA), Microsoft Customer Agreements (MCA), and Cloud Solution Provider (CSP) programs. They ensure consistency and transparency in how Microsoft Online Services are offered and consumed.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>What changed?<\/strong><\/h2>\n<p style=\"text-align: justify;\"><strong>Previously<\/strong>, Microsoft\u2019s Online Services Purchasing Rules were interpreted to mean that <strong>any Add-on with a prerequisite license (like a base User SL) had to be purchased under the same licensing agreement as that base license.<\/strong><\/p>\n<p style=\"text-align: justify;\">This has <strong>changed now<\/strong>. As of July 1, 2025, Microsoft <strong>differentiates between Cloud Add-ons and other Add-ons<\/strong>:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Only <strong>Cloud Add-ons to SA<\/strong> and <strong>Step-up licenses<\/strong> now need to be bought under the same agreement as their base license.<\/li>\n<li><strong>Other Add-ons<\/strong> (that just require a base license but are not tied to SA) <strong>can now be purchased under a different agreement.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>What is a Cloud Add-on to SA?<\/strong><\/h2>\n<p style=\"text-align: justify;\">A &#8220;<strong>Cloud Add-on to SA<\/strong>&#8221; is an online service (like Microsoft Defender or Intune) that you can <strong>add to an existing on-premises license that has active Software Assurance (SA)<\/strong>. It is a way to extend your on-premises investment into the cloud.<\/p>\n<p style=\"text-align: justify;\"><strong>Example:<\/strong><\/p>\n<table>\n<thead>\n<tr>\n<td><strong>Base License (with active SA)<\/strong><\/td>\n<td><strong>Cloud Add-on to SA (User SL)<\/strong><\/td>\n<td><strong>Explanation<\/strong><\/td>\n<td><strong>Ideal for organization, that<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Exchange Server Standard CAL<\/td>\n<td>Exchange Online Plan 1 Add-on (User SL)<\/td>\n<td>This Add-on brings cloud-based email (Exchange Online) to users who already have an on-premises Exchange CAL with active SA.<\/td>\n<td>\n<ul>\n<li>Already have on-premises Exchange infrastructure.<\/li>\n<li>Want to gradually move to the cloud without replacing their entire licensing model.<\/li>\n<li>Need to maintain hybrid Exchange environments.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>Key Conditions for Cloud Add-ons to SA<\/strong><\/h2>\n<p style=\"text-align: justify;\">To use a Cloud Add-on to SA, you must:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Have active Software Assurance for the base license.<\/li>\n<li>Buy one Cloud Add-on per qualifying license.<\/li>\n<li>Know that the Add-on expires when either the SA or the Add-on term ends.<\/li>\n<li>Only assign the Add-on to users who have a qualifying license.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>What Are Step-up Licenses?<\/strong><\/h2>\n<p style=\"text-align: justify;\"><strong>Step-up licenses<\/strong> allow a customer to <strong>move from a lower edition of a product to a higher edition<\/strong> without buying a full new license. You <strong>only pay the difference in price<\/strong>.<\/p>\n<p style=\"text-align: justify;\"><strong>Examples:<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>Moving from Microsoft 365 E3 to Microsoft 365 E5 using a Step-up license.<\/li>\n<li>Upgrading from Power BI Pro to Power BI Premium Per User via Step-up.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">These Step-up licenses must be purchased under the same agreement as the original (base) license. So, if your base license is under an Enterprise Agreement (EA), the Step-up must also be under the EA.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>What Are Other Add-ons (not tied to SA)?<\/strong><\/h2>\n<p style=\"text-align: justify;\">These are <strong>Add-ons<\/strong> that require a base license but are <strong>not linked to Software Assurance (SA)<\/strong>. They are more flexible under the new rules.<\/p>\n<p style=\"text-align: justify;\">Examples:<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Microsoft Teams Phone Standard Add-on<\/strong>: Requires one of the following licenses prerequisites: Microsoft 365 Business Basic\/Business Standard\/Business Premium\/F1\/F3\/E3\/A3; Microsoft Teams EEA; Microsoft Teams Enterprise; Microsoft Teams Essentials (AAD Identity); Office 365 F3\/E1\/E3\/A1\/A3.<\/li>\n<li><strong>Power Automate Process Mining Add-on<\/strong>: Requires Power Automate Premium per user plan.<\/li>\n<li><strong>Power BI Premium Add-on<\/strong>: Requires Power Apps, or Power Automate, or specific Office 365\/Microsoft 365 licenses, or Dynamics 365.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Under the new rules, <strong>these and other Add-ons, not linked to SA, do not need to be purchased under the same agreement as the base license<\/strong>. So, for example, you can have your base license under an Enterprise Agreement (EA) and buy the Add-on under the Cloud Solution Provider (CSP) program.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><strong>Conclusion<\/strong><\/h2>\n<p style=\"text-align: justify;\">Previously, Microsoft\u2019s Online Services Purchasing Rules were interpreted to mean that any Add-on with a prerequisite license (such as a base User Subscription License (User SL)) had to be purchased under the same licensing agreement as that base license.<\/p>\n<p style=\"text-align: justify;\">With the updated Universal License Terms, Microsoft has clarified that this requirement applies only to Cloud Add-ons to Software Assurance (SA). These are additional cloud services that are tied to on-premises licenses with active SA. Other Add-ons that simply require a prerequisite license\u2014but are not tied to SA\u2014do not need to be purchased under the same agreement.<\/p>\n<p style=\"text-align: justify;\">This change provides more flexibility across licensing programs, such as Enterprise Agreement (EA) and Cloud Solution Provider (CSP).<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-56101\" src=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-800x533.jpg 800w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-500x333.jpg 500w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-150x100.jpg 150w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-768x512.jpg 768w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-1536x1024.jpg 1536w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9075-2048x1365.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p style=\"text-align: justify;\">If you have any questions concerning Microsoft licensing, <a href=\"https:\/\/www.schneider.im\/contact\/\">talk to your Account Manager Licensing at SCHNEIDER IT MANAGEMENT<\/a>. We are always here to support you in optimizing your licensing strategy\u2014ensuring compliance, cost-efficiency, and flexibility across all Microsoft agreements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Effective July 1, 2025, Microsoft has updated the Universal License Terms for Online Services to clarify the purchasing rules for Cloud Add-ons to Software Assurance (SA). This change refines the interpretation of which Add-ons must be purchased under the same licensing agreement as their base license. &nbsp; What are the Universal License Terms for Online [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":33016,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110],"tags":[],"class_list":["post-59477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-microsoft-software-assurance"],"_links":{"self":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/posts\/59477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/comments?post=59477"}],"version-history":[{"count":4,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/posts\/59477\/revisions"}],"predecessor-version":[{"id":59489,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/posts\/59477\/revisions\/59489"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/media\/33016"}],"wp:attachment":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/media?parent=59477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/categories?post=59477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/tags?post=59477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}