Microsoft Licensing— the right licences, not just licences
The licence is the easy part. Knowing which one is where PIP earns its keep — subscription or perpetual, per-user or per-device, desktop or server, one product or the full catalogue.
Understanding Microsoft licensing
Microsoft licensing is not simple. Subscription vs perpetual, per-user vs per-device, Microsoft 365 vs standalone Microsoft Office, server licences vs Client Access Licences, volume licensing vs CSP — the number of licensing models is the problem in itself. Most businesses either overpay on the wrong tier or under-license and carry audit risk they don’t know about.
PIP has been a Microsoft partner since the ’90s — over thirty years supplying, advising and managing Microsoft licences for Sydney businesses. We supply the full Microsoft catalogue: Microsoft 365 subscriptions, Microsoft Office 2024 perpetual licences, Windows Server, SQL Server, CALs and volume licensing — all at partner pricing, with genuine advice on which licence model fits before anything gets purchased.
Subscription vs perpetual — which model fits
Every Microsoft licensing decision starts here. Subscription licences require ongoing payments for product access — you pay per user per month and always have the latest versions. Perpetual licences provide a right to use a product indefinitely — one purchase, no recurring cost, but updates stop when Microsoft ends support.
| Subscription (Microsoft 365) | Perpetual (Office 2024) | |
|---|---|---|
| Payment model | Per user, per month (annual or monthly billing) | One-time purchase per licence |
| Updates | Continuous — always the latest versions and new versions as they release | Security updates only, until end of support (2029 for Office 2024) |
| Cloud services | Exchange Online, Teams, SharePoint, OneDrive included | No cloud services — desktop apps only |
| Teams & Exchange | ✓ Included | — Not included |
| Cost profile | Ongoing operational expense | One-time capital expense |
| Upgrade rights | Automatic — new versions included | None — must purchase the next version separately |
| Right for | Businesses that need email, Teams, cloud storage and ongoing features | Businesses that want to own their software outright with no cloud dependency |
There is no universal right answer. Some businesses run a mix — subscription licences for staff who need cloud services, perpetual licences for roles that only need the Office apps. PIP advises on the right model for each situation.
Microsoft Office 2024 — buy once, own it
Microsoft Office 2024 is a one-time purchase: buy the licence, install the software, own it indefinitely. No subscription required. It includes the core Office apps — Word, Excel, PowerPoint, OneNote (the digital notebook) and, depending on the version, Outlook. Available for PC or Mac.
Security updates are provided through Microsoft’s standard support lifecycle — mainstream support for Office 2024 ends in 2029. After that, the software still works but no longer receives patches. Microsoft Office 2024 does not include cloud storage, Microsoft Teams or Exchange Online — if those are needed, Microsoft 365 is the right product.
| Office Home & Student 2024 | For business use Office Home & Business 2024 | Office Professional 2024 | |
|---|---|---|---|
| Word, Excel, PowerPoint | ✓ | ✓ | ✓ |
| OneNote | ✓ | ✓ | ✓ |
| Outlook | — | ✓ | ✓ |
| Access & Publisher (PC only) | — | — | ✓ |
| Commercial use rights | No — personal use only | ✓ | ✓ |
| PC or Mac | Both | Both | PC only |
Important: Office Home & Student is not licensed for commercial use. For business use, Office Home & Business 2024 or Office Professional 2024 are the appropriate products. PIP supplies Microsoft Office 2024 at partner pricing — PC or Mac, individual installs or volume.
Microsoft 365 for business — the subscription model
Microsoft 365 is a subscription: per user per month, the Office apps plus cloud services — Exchange Online for email, Microsoft Teams for collaboration, SharePoint and OneDrive for file storage and sharing. Office 365 was the former name; Microsoft 365 is the current product.
Business Basic
No desktop Office apps. Email, Teams, OneDrive included. Lowest-cost entry for cloud services.
Apps for Business
Full desktop Office apps but no Exchange Online or Teams. Suits businesses with email elsewhere.
Business Standard
Desktop Office apps, Exchange Online, Teams, SharePoint, OneDrive. The everyday business tier.
Business Premium
Adds Defender for Business, Intune and advanced Conditional Access. The most complete SMB tier.
Business plans cap at 300 seats — enterprise plans (E3, E5) remove the cap and add advanced compliance and security. Microsoft 365 offers a one month free trial for new subscribers; PIP can manage the trial setup. The Microsoft Customer Agreement is the standard purchase vehicle for Microsoft 365 via the Cloud Solution Provider (CSP) framework. For full detail on Microsoft 365, see the Microsoft 365 managed service page.
Windows Server, SQL Server and CALs
This is the part of Microsoft licensing most resellers don’t touch. Windows Server and SQL Server carry their own licence models, with Client Access Licences (CALs) required on top — and Microsoft audits for licence non-compliance are common.
| Windows Server | SQL Server | |
|---|---|---|
| Licence model | Per physical server + CALs | Per-core or Server + CAL |
| Base coverage | Standard covers 2 processors / up to 16 cores per licence | Per-core: minimum 4 core packs. Server + CAL: 1 server instance |
| CAL requirement | Every user or device accessing the server needs a CAL | Required under the Server + CAL model; not under per-core |
| Internet-facing | CAL-based | Per-core is required for internet-facing SQL deployments |
| When to use | File servers, domain controllers, application hosting | Databases, reporting, line-of-business app backends |
User CALs vs Device CALs
User CALs cover one person on any number of devices — suits most businesses. Device CALs cover one device regardless of who logs in — suits shift-worker or shared-terminal environments. Choosing wrong is an audit exposure.
Remote Desktop & Windows Enterprise
Remote Desktop Services (RDS) requires separate RDS CALs on top of Windows Server CALs. Windows Enterprise licences add advanced management and security features over Windows Pro — available through volume licensing.
Volume licensing and Cloud Solution Provider
Volume licensing is Microsoft’s framework for purchasing software at scale — it offers sizable discounts for bulk purchases and centralised licence management through activation methods like MAK (Multiple Activation Key) and KMS (Key Management Service). For most organisations, it’s the route to Windows Server, SQL Server and Windows Enterprise licences.
Cloud Solution Provider (CSP) is the flexible subscription framework PIP uses to supply Microsoft 365 and other online services — managed through certified Microsoft partners, with monthly billing that can scale up or down as headcount changes. The Microsoft Customer Agreement is the standard agreement underpinning CSP purchases, replacing the older Open License program which Microsoft ended for commercial customers.
Software Assurance can be layered onto volume licence purchases for upgrade rights and deployment benefits. PIP manages the CSP relationship end to end — licence ordering, renewal, compliance tracking, and audit preparation.
Choosing the right licence — that’s the service
Choosing the right Microsoft licensing plan involves balancing functionality, security and cost. PIP doesn’t push one model over the other — we supply both subscription and perpetual, and advise on the right mix for each client.
- Full Microsoft catalogue: Microsoft 365 (all business tiers), Microsoft Office 2024, Windows Server, SQL Server, CALs and volume licences
- Partner pricing on every Microsoft product — businesses pay less than retail
- Licence advice before the purchase — right model, right tier, right count
- Ongoing licence management: tracking counts, managing renewals, adjusting CSP subscriptions as staff change
- Licence compliance: identifying underutilised licences and ensuring the business is audit-ready if Microsoft asks
- Developers and technical teams: Azure licensing and Entra ID integration for dev environments handled alongside production
Microsoft audits for licence non-compliance are common — and expensive when you’re short. PIP keeps customers compliant by default, not after a notice arrives. See our Microsoft 365 managed service for how ongoing management works alongside licensing.
Microsoft licensing, answered
What are the different types of Microsoft licensing?
Microsoft licensing falls into two main models: subscription (Microsoft 365, billed per user per month) and perpetual (Microsoft Office 2024, a one-time purchase). Within those models you’ll find per-user licences, per-device licences, server licences (Windows Server, SQL Server), Client Access Licences (CALs) and volume licences. Enterprise plans (E3, E5) extend the subscription model with advanced compliance and security. CSP and volume licensing are the two main purchasing frameworks — PIP manages both.
How much do Microsoft licences cost?
That depends on the product, the licence type and the volume. PIP supplies all Microsoft licences at partner pricing through the CSP framework and volume licensing — which means businesses pay less than retail. We don’t publish pricing information on the website because the right answer depends on what you actually need. Contact PIP with your requirements and we’ll provide a quote for your situation.
What is Microsoft licensing?
Microsoft licensing is the legal and commercial framework governing how businesses use Microsoft software and services. It determines which products you can use, on how many devices, and under what conditions. Microsoft uses four main units of measure: per-user, per-device, capacity-based (cores) and consumption-based (usage). Getting it right matters because Microsoft audits for non-compliance are real and the penalties are not small.
Do I need to pay for Microsoft 365 every year?
Yes — Microsoft 365 is a subscription service with annual or monthly payment options. If the subscription lapses, access to the apps and cloud services stops. Microsoft Office 2024 is the alternative: a one-time purchase with no ongoing payment, but it doesn’t include cloud services, Teams or Exchange Online. PIP supplies both and can advise on which model — or which mix — fits your business.
One call for every Microsoft licence
Microsoft 365, Office 2024, Windows Server, SQL Server, or a full licence review — start the conversation with PIP.