Learn365 and Microsoft 365 license requirements


In this article, we describe the Learn365 and Microsoft 365 license requirements and explore how Learn365 handles internal and external users.


Microsoft 365 license requirements

External users

An external user is someone who has been granted access to your SharePoint Online site, but isn't a licensed user within your organization.

External users are defined as users who aren't employees, contractors, or onsite agents for you or your affiliates. Typically, they're partners, customers, and clients.


Internal users

To use Microsoft 365, users who don't fall under Microsoft's guest or external user policy, such as employees, contractors, and affiliates, need at least a Kiosk (no longer sold) or F1 license.

Users who fall under Microsoft's guest or external user policy, such as partners, customers, and clients, don't need a license.



If you have an Enterprise Agreement or other contract, check with your Microsoft representative for more information.


Learn365 subscription and licensing requirements

We operate in a similar way to most other organizations in the SaaS world in that our subscription model is based on a 12 month minimum contract.

The pricing is tiered, meaning the more licenses you purchase, the less you pay per license.

Learn365 licenses aren't named user licenses. Instead, learners are assigned a license when they're enrolled in courses. Your admins don't need a license if they're enrolling themselves in courses.


So how does it work?

  • A Learn365 license is consumed only when a learner is enrolled in at least one course. Learners who aren't enrolled in a course don't consume a license.
  • When a user is unenrolled from a course, a license is freed up as long as they aren't enrolled in another course.

For more information about when a Learn365 license is consumed, see this article.


Lifelong learner data

We believe in lifelong learning and understand the different organizational structures in which our clients operate; full time employees, part-time, temporary, seasonal, or contract.

  • Lifelong learner = Lifelong data
  • If a learner leaves an organization, their learner data is preserved and can be reported on.



To align with GDPR rules and regulations, learner data can be deleted.


License administration

The LMS admin can run license usage reports and define the thresholds for subscription-based notifications. For more information, see this article.


Additional Resources


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