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Microsoft Licensing

Microsoft 365 licensing is deliberately confusing, and most of the confusion is expensive. Buying too little means finding out at audit time. Buying too much means paying for governance nobody has switched on. Answer four questions and you'll get the license stack I'd actually put on a quote, roughly what it costs, what you give up by stopping there, and the specific event that means it's time to move up.

Pricing Copilot instead? That sits on top of these licenses and bills differently — the Copilot tool covers the seats, the credits, and what a month of Cowork actually costs.

Question 1 of 4

How many users will be licensed?

This is the single biggest fork. Business plans hard-cap at 300 seats.

A tool is not a quote

This models the common cases well, but it can't see your tenant. Mixed licensing across departments, an existing agreement, a renewal date worth timing around, on-premises servers still in play, data residency obligations — all of that changes the answer, and none of it fits in four questions. Prices are Australian list (AUD, excluding GST) on an annual commitment, taken from Microsoft's Australian pricing pages and last checked July 28, 2026.

If you want a second opinion on what you're paying, or you're sizing a move before a renewal, I'm happy to look at it properly — get in touch.

Talk it through

Shadow IT is independent and is not affiliated with, endorsed by, or acting on behalf of Microsoft. Product names and documentation links belong to Microsoft, which changes both pricing and packaging without notice — always confirm current figures before you budget or quote.