Exchange Online Licensing Guide
Exchange Online Licensing Guide
Section titled “Exchange Online Licensing Guide”Overview
Section titled “Overview”Microsoft Exchange Online is a hosted messaging solution that delivers email, calendar, contacts, and tasks from PCs, the web, and mobile devices. It integrates fully with Microsoft Entra ID, enabling administrators to use group policies and other administration tools to manage Exchange Online features across their environment.
Organizations that subscribe to Exchange Online retain control over the messaging services they offer to users, with email hosted on Microsoft servers in datacenters accessible from corporate networks or over the Internet.
Licensing Requirements
Section titled “Licensing Requirements”User Subscription Requirements
Section titled “User Subscription Requirements”- Each user accessing Exchange Online must be assigned to a subscription plan
- Each user subscription has its own mailbox
- Mailbox data resides in Microsoft datacenters
- Conference rooms and shared mailboxes do not require user subscriptions
- Microsoft 365 F1 does not include rights to an Exchange mailbox
Important: Shared mailboxes and conference rooms have no login credentials—licensed users with appropriate permissions manage and access them via delegation.
Features Available for All Plans
Section titled “Features Available for All Plans”Core Features (Exchange Online Plan 1 and Plan 2)
Section titled “Core Features (Exchange Online Plan 1 and Plan 2)”| Feature Category | Capabilities | Business Value |
|---|---|---|
| Security Protection | Built-in anti-spam and anti-malware protection with multiple engines | Comprehensive threat protection for inbound, outbound, and internal messages |
| Admin Access | Microsoft 365 portal, Exchange admin center, Remote PowerShell access | Full administrative control and management capabilities |
| Mobile Device Support | ActiveSync policies for mobile devices | Secure mobile access and device management |
| Data Protection | Mailbox replication at datacenters, Single item recovery | Data redundancy and recovery capabilities |
| Integration | Skype for Business presence in OWA/Outlook, SharePoint interoperability | Seamless collaboration across Microsoft 365 services |
| Messaging Features | Custom routing, Secure messaging, Conditional mail routing | Flexible email flow and partner communication |
| Hybrid Support | Cutover, hybrid migration, and staged migration support | Smooth transition from on-premises to cloud |
| Reporting | Microsoft 365 admin center reports, Message trace | Comprehensive monitoring and troubleshooting tools |
| Productivity Tools | Capacity alerts, MailTips, Inbox rules, Resource mailboxes | Enhanced user productivity and resource management |
| Sharing & Collaboration | Federated sharing, Calendar sharing, Site mailboxes, Public folders | Improved team collaboration and external partnerships |
Exchange Online Plan 2 Exclusive Features
Section titled “Exchange Online Plan 2 Exclusive Features”Advanced Compliance and Archiving
Section titled “Advanced Compliance and Archiving”| Feature | Capability | Business Value |
|---|---|---|
| In-Place Hold and Litigation Hold | Preserve mailbox data for legal and compliance purposes | Legal compliance and eDiscovery support |
| Microsoft Purview Data Loss Prevention | Identify, monitor, and protect sensitive information | Prevent data breaches and ensure regulatory compliance |
| Inactive Mailboxes | Retain mailbox content after employee departure | Preserve organizational knowledge and comply with retention policies |
Storage Limits and Pricing
Section titled “Storage Limits and Pricing”Storage Overview
Section titled “Storage Overview”Detailed storage limit information is available through Microsoft’s official documentation.
Pricing Structure
Section titled “Pricing Structure”| Plan | Price per User/month | Target Audience |
|---|---|---|
| Exchange Online Plan 1 | $4.00 | Small to medium businesses needing essential email functionality |
| Exchange Online Plan 2 | $8.00 | Organizations requiring advanced compliance and archiving features |
Shared Mailbox Licensing
Section titled “Shared Mailbox Licensing”Storage Limits
Section titled “Storage Limits”- Free storage: Up to 50GB without requiring a license
- License required: When storage exceeds 50GB
License Requirements for Shared Mailboxes
Section titled “License Requirements for Shared Mailboxes”An Exchange Online Plan 2 license is required when a shared mailbox:
- Has more than 50GB of storage in use
- Uses in-place archiving
- Is placed on litigation hold
Access Requirements
Section titled “Access Requirements”- To access a shared mailbox: Users must have an Exchange Online license
- Shared mailbox itself: Does not require a separate license
- System account: Each shared mailbox has a corresponding user account with a system-generated password
Important: Never use the system account to log in to a shared mailbox—access should always be through delegated permissions.
Conclusion
Section titled “Conclusion”Exchange Online provides a comprehensive, cloud-based messaging solution with flexible licensing options to meet diverse organizational needs:
- Plan 1 offers essential email functionality with robust security and collaboration features
- Plan 2 adds advanced compliance, archiving, and data loss prevention capabilities
- Shared mailboxes provide cost-effective collaboration for teams without requiring individual licenses
Key Takeaway: Choose Exchange Online Plan 1 for standard business email needs, and Plan 2 when advanced compliance, archiving, and data protection features are required for regulatory or legal purposes.