Do outside users in sharepoint need Microsoft license?

Do Outside Users in SharePoint Need a Microsoft License?

As an organization, you’ve implemented SharePoint to improve team collaboration, data storage, and content management within your internal stakeholders. However, you’ve also invited outside users, such as customers, partners, or contractors, to access certain SharePoint contents. A common question arises: Do these outside users need a Microsoft license? The answer is not straightforward, and it’s essential to understand the nuances to ensure compliance with Microsoft licensing policies.

Microsoft Licensing and SharePoint

To understand the licensing requirements, let’s first review the basics of Microsoft licensing. Microsoft offers various licensing programs, including Microsoft 365, Office 365, and Enterprise Agreements (EAs). These programs entitle users to access specific Microsoft products and services, such as Office applications (e.g., Word, Excel, PowerPoint), Microsoft Office Online, and SharePoint.

Do Outside Users Need a Microsoft License?

The answer depends on the type of access and usage. Here’s a breakdown:

  • Read-only access: If outside users only need to read content, but cannot edit or contribute to SharePoint contents, they do not require a Microsoft license.
  • Limited access: If outside users need to contribute to SharePoint contents, but only for a specific project or project phase, they may not require a Microsoft license. In this case, a SharePoint Add-in License (Formerly known as Per-User CAL) can be purchased to grant them limited access.
  • Full access: If outside users require advanced features, such as editing, uploading, or sharing files, they need a Microsoft 365 or Office 365 license. This license grants them access to the full range of Office applications and SharePoint features.

Licensing Options for Outside Users

Cherry-picking the right licensing option can be challenging. Here’s a summary of the available options:

Licensing Option Description Cost
SharePoint Add-in License Limited access to SharePoint for specific projects or phases $4.50 per user per month (Enterprise) or $5.50 per user per month (Small Business)
Microsoft 365 Full access to Office applications and SharePoint features $8.25 per user per month (F1) or $12.50 per user per month (F3)
Office 365 Full access to Office applications $5.00 per user per month (F1) or $8.25 per user per month (F3)

Best Practices for Outside User Licensing

To ensure compliance and effective license management, consider the following best practices:

  • Monitor and audit usage: Regularly review user activity to identify potential over-licensing or under-licensing.
  • Implement role-based access control: Restrict user access based on their roles, ensuring only authorized users have access to sensitive information.
  • Use SharePoint add-ins: If possible, use SharePoint add-ins to grant limited access to outside users, reducing the need for full Microsoft 365 or Office 365 licenses.
  • Streamline license management: Automate license reporting and tracking to simplify the process and reduce administrative burdens.

Conclusion

In conclusion, outside users in SharePoint may or may not require a Microsoft license, depending on the type of access and usage. By understanding the different licensing options, implementing best practices, and monitoring user activity, you can ensure compliance with Microsoft licensing policies and optimize your organization’s use of SharePoint.

Remember to carefully evaluate your organization’s specific needs and requirements before making a decision. It’s also essential to consult with Microsoft or a qualified licensing expert to determine the most suitable licensing solution for your external users.

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