Microsoft to overhaul education licensing and storage models

Microsoft is implementing a major restructuring of its Microsoft 365 Education licensing models, marking its largest portfolio update for the sector in over a decade. The company will phase out the long-standing Office 365 A1 plan and the Student Use Benefit program.

Sales of Office 365 A1 via web direct channels have already ceased. Sales through Cloud Solution Providers (CSP) and volume licensing are scheduled to end by May 1, 2027, with the service being fully retired on January 1, 2028. Institutions with existing contracts can maintain their licenses until their current terms expire, but renewals will be prohibited starting January 1, 2028.

A significant change involves the removal of the 100TB base shared storage pool currently provided to educational institutions. Under the new model, storage capacity will be determined by fixed contributions per license. For students, capacity will range from 4GB for A2 licenses to 12GB for A5 and A7 licenses. Faculty members will receive between 50GB and 150GB depending on their license tier.

Additionally, Microsoft will discontinue the free Exchange Online service for alumni. Educational institutions wishing to continue providing email services to graduates must transition to paid models. The new licensing hierarchy will include tiers A0, A2, A3, A5, and A7, with varying levels of access to tools like Microsoft Teams and SharePoint Online.