Exchange Server SE Licensing

Question

Hi All,

I'd like to ask about the Exchange Server SE licensing since we are about to upgrade to the new subscription edition.

Currently, we are using enterprise edition license for our Exchange and we are running Exchange Server 2019 CU15. On the other hand, we have E3 licenses for all of our users.

Is it required to purchase a new server license with SA before or after the upgrade or we can just run the server while the mailboxes are assigned the Office365 licenses? Do I need to purchase server CAL alongside the Office365 licenses assigned to the user if this will work?

Answer 1

@Hin-V , Traditionally, large customers who purchase M365 E3/E5 through an Enterprise Agreement (EA/EAS) have been granted an Extended Use Right (EUR) as part of their agreement. This right provides them with the license to install the Exchange Server on-premises server software (i.e., the Server License). However, I'm not entirely sure that EA/EAS + E3/E5 gets this right.

Those who acquire their licenses through the Web Direct, CSP, or MCA channels do not have this right. What do you think about this?https://www.microsoft.com/licensing/guidance/Microsoft-365-enterprise

Answer 2

Hi @Ahmed Salem

Thank you for posting your question in Microsoft Q&A. 

We understand that you are considering about Exchange Server SE licensing. I will address each question individually to ensure clarity and thoroughness:

Is it required to purchase a new server license with SA before or after the upgrade?

Yes, you are required to purchase a new Exchange Server Subscription Edition license, and it must be purchased before you perform the upgrade on your production server. The old model of a one-time perpetual license with optional Software Assurance (SA) is gone. The Subscription Edition (SE) requires a subscription license, which is a recurring cost. This subscription includes the rights to support, updates, and future versions, effectively replacing the need for separate SA.

For compliance: To be legally compliant, you must have a valid license for the software you are running. Upgrading your server to Exchange SE without having the corresponding subscription license would put you out of compliance. 

Can we just run the server while the mailboxes are assigned the Office 365 licenses? Unfortunately, the Office 365 licenses cover the users, not the server. You cannot legally run a production Exchange SE server that hosts mailboxes without its own subscription license.

Do I need to purchase server CALs alongside the Office 365 licenses assigned to the user?

You do not need to purchase separate Exchange Server Client Access Licenses (CALs) for users who are assigned a Microsoft 365 E3 license.

The reason is that your Microsoft 365 E3 licenses include "CAL equivalency rights.". This means that for licensing purposes, a user with an active M365 E3 license is already considered to have a valid CAL to access your on-premises Exchange Server. This is a key benefit for organizations running a hybrid environment, as it prevents you from having to license the same user twice (once for the cloud and again for on-premises).

Server License: You must buy a subscription for the server software itself.

User CALs: You are covered by the users' existing M365 E3 licenses

If we are misunderstanding or haven't reach out your main point, please let me know. 

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