Microsoft M365 G5 and Mailbox Licensing Guidance

This page provides guidance for agencies on Microsoft 365 user licensing and mailbox licensing. It outlines when to assign Microsoft 365 G5, Microsoft 365 F3, Exchange Online Plan 2, or no license based on a user's role, mailbox requirements, and data retention needs.

Microsoft License Offerings

TSS offers four (4) Microsoft licensing options for supported agencies:

1. Microsoft 365 G5
2. Microsoft 365 F3
3. Exchange Online Plan 2
4. No license

Microsoft 365 G5

This license is intended for users who require the full Microsoft 365 productivity suite and enterprise capabilities. 

Included:

• Microsoft Office desktop applications
• Exchange Online
• Microsoft Teams
• SharePoint Online
• OneDrive for Business
• Microsoft Power BI Pro
• Audio Conferencing 
• Microsoft 365 web and mobile applications
• Advanced security, compliance, and identity capabilities

Microsoft 365 F3

This license is intended for eligible frontline and task-based workers who primarily use web and mobile applications and do not require the full Microsoft Office desktop suite. 

Included:

• Exchange Online
• Microsoft Teams
• SharePoint Online
• OneDrive for Business
• Microsoft 365 web and mobile applications

Exchange Online Plan 2

Exchange Online Plan 2 provides Exchange Online (email) only and is intended for approved email-only scenarios where a full Microsoft 365 license is unnecessary.

Included:

• Exchange Online

No License

No license should be assigned when Microsoft licensing is no longer required and all retention requirements have been satisfied.

Included:

• N/A

Licenses for Active Users

Active users should be assigned the Microsoft 365 license that best supports their business needs.

Microsoft 365 G5
Assign Microsoft 365 G5 to users who:

• Require Microsoft Office desktop applications
• Need access to the full Microsoft 365 suite
• Require advanced security or compliance capabilities
• Perform standard office or administrative work

Microsoft 365 F3
Assign Microsoft 365 F3 to eligible users who:

• Primarily perform frontline or task-based work
• Does not have a Commonwealth issued device 
• Access Microsoft 365 only through web and mobile applications
• Do not require the full Microsoft Office desktop applications

Exchange Online Plan 2
Exchange Online Plan 2 is not intended for standard active users and should only be assigned for approved email-only scenarios.

Licenses for Inactive Users

Determining the correct license level for an inactive user (commonly referred to as a "zz'd" account) requires evaluating the user's mailbox, OneDrive data, and retention requirements.

The objective is to remove Microsoft licenses whenever possible while ensuring agency business, legal, and records retention requirements continue to be met.

Inactive users may require an Exchange Online Plan 2 license if mailbox retention, OneDrive content, when being accessed by another active user (other than eDiscovery), or migration activities require it.

Licenses for Group Mailboxes

Most group, shared, resource, and equipment mailboxes do not require a Microsoft 365 license.

However, an Exchange Online Plan 2 license is required if the mailbox:

• Exceeds 50 GB
• Requires Litigation Hold
• Requires features available only through Exchange Online Plan 2
   

Licenses for Reservation Mailboxes

Reservation, resource, and equipment mailboxes generally do not require a Microsoft 365 user license.

Assign Exchange Online Plan 2 only when mailbox size or retention requirements exceed the capabilities of an unlicensed mailbox.

Microsoft License Decision Matrix

Not sure which license you need? 

The Microsoft License Decision Matrix below will help you decide.

License	Requirements
Microsoft M365 G5	Active User Needs access to other O365 services (Office Pro Plus, Exchange Online, SharePoint Online, OneDrive for Business, Teams and etc.) Disabled User who has files in OneDrive for Business
Microsoft F3	Frontline or task-based employee (online & mobile) Please reach out to Customer Engagement for information on how to request this license
Microsoft Exchange Online Plan 2	Disabled User with mail stored outside of their mailbox (external archive, PST’s, etc.) that needs to be migrated, but who does not have files in OneDrive for Business. Active Group, Shared, Resource or Equipment Mailbox that: has a large mailbox (>50GB), and/or requires Litigation Hold
No License Required (Microsoft Outlook Mailbox request item)	Disabled User without mail stored outside of their mailbox (external archive, PST’s, etc.) and who does not have files in OneDrive for Business