We understand that Microsoft 365 enforces a license cap of 300 users per tenant for each Business plan, but people using 300 BB with teams and 300 BB without teams with same tenant, is that advisable?

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We understand that Microsoft 365 enforces a license cap of 300 users per tenant for each Business plan, but people using 300 BB with teams and 300 BB without teams with same tenant, is that advisable?

Anonymous

We understand that Microsoft 365 enforces a license cap of 300 users per tenant for each Business plan (e.g., Business Basic, Business Premium, etc.). However, with the introduction of the new "with Teams" and "without Teams" licensing options, we are observing a concerning practice in the market.

Customers are now purchasing 300 licenses of Microsoft 365 Business Basic with Teams, and an additional 300 licenses without Teams under the same tenant — effectively bypassing the intended 300-license cap per plan.

We would like to escalate this matter and request Microsoft to issue clear guidelines or enforce restrictions to avoid such circumventions. This ambiguity is leading to confusion among customers and partners, and may create compliance issues in the future.

As an example, we are seeing tenants configured with:

300 x M365 Business Basic (with Teams)
300 x M365 Business Basic (without Teams)

We request Microsoft to look into this and advise on the proper licensing and compliance measures moving forward.

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Answer 1

Have a look at the following link

https://www.microsoft.com/en-sg/microsoft-365/business/microsoft-365-frequently-asked-questions

Look under Plans & Billings -> (10) Can I mix and match Microsoft365 plans

Our Microsoft 365 for business base plans (charged per user) are designed for organizations with up to 300 users. Organizations with more than 300 users should consider subscribing to Microsoft 365 for enterprise plans. We reserve the right to enforce a tenant limit of 300 provisioned licenses across the family of business plans, in which case we will provide advance notice and further guidance. In the meantime, we are treating customers that have provisioned up to 300 licenses of each individual business plan (Microsoft 365 Business Basic, Business Standard, Business Premium) as compliant with this 300-seat limit. This applies even if they have provisioned more than 300 total licenses across the family of business plans.

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We understand that Microsoft 365 enforces a license cap of 300 users per tenant for each Business plan, but people using 300 BB with teams and 300 BB without teams with same tenant, is that advisable?

1 answer