ABOUT THIS EPISODE
Microsoft has no intention of making 365 licensing simpler, because the complexity is what gives them room to negotiate.
Andy Syrewicze gets Paul Schnackenburg back on the show to map Microsoft 365 licensing as it actually stands in 2026. The July price increases and the one SKU that did not move, the Defender and Purview add-ons that let a 300 seat shop buy E5 capability without buying E5, the features that left E5 for the Entra Suite, and E7 at $99 per user per month with Agent 365 attached. Paul teaches this to Microsoft partners for a living, and he says the part out loud that most people only suspect.
Chapters:
00:00:00 - Cold Open: You Need a PhD for 365 Licensing
00:01:00 - Welcome and Show Plugs
00:07:11 - News React: The iPhone Duo and V1 Hardware
00:12:07 - News React: Companies Throttling Employee AI Use
00:13:59 - Nerd Hour: Andy's Claude Code Data Pipeline
00:20:15 - Nerd Hour: Cloudflare and Paying for AI Crawls
00:22:35 - Main Topic: Making the Imaginary Lawyers Happy
00:23:38 - Business, Enterprise, and the Office 365 Leftovers
00:25:51 - Business SKUs and the July Price Increase
00:28:14 - Why Paul Treats Business Premium as the Floor
00:28:42 - The 15 Person Firm He Put on E5
00:30:31 - Defender and Purview Add-Ons for Business Premium
00:32:47 - From the Outside, This Sounds Like Lunacy
00:33:41 - Licensing Is Now a Quarterly Job
00:34:58 - Mixing Business and Enterprise Past 300 Seats
00:36:29 - What Separates Basic, Standard, and Premium
00:37:18 - Conditional Access Is the Real Upgrade Trigger
00:38:33 - M365 Maps and the Periodic Table
00:40:07 - The No Teams SKUs and EU Antitrust
00:41:39 - Paying for the Top SKU and Turning Nothing On
00:42:17 - Third Party Security Tools vs the Microsoft Stack
00:47:17 - Thirty Portals and Nobody Can Cover Them All
00:50:04 - Tony Redmond: Too Complex for Humans to Understand
00:51:36 - The Intune Suite Folds Into E3 and E5
00:55:22 - The Add-On Maze and What Purview Gives You
00:59:10 - E5 Is Not the Kitchen Sink Anymore
01:01:10 - The Entra Suite: Governance and Private Access
01:03:02 - E7, Agent 365, and Agent ID
01:05:37 - Purview and Defender Watching Your Agents
01:07:12 - Who Is Running OpenClaw in Your Tenant?
01:07:59 - E7 at $99 Per User Per Month
01:09:07 - The Complexity Is Intentional
01:10:06 - Do This Monday: Audit Your Add-Ons and Renewal Date
01:11:19 - The New Conditional Access Overage Warning
01:12:12 - The One License Myth and Microsoft's Telemetry
01:14:53 - Wrap Up and Outro
Resources / Show Notes:
- Tony Redmond, Is Microsoft 365 Too Complex for Humans to Understand: https://365forall.com/article/is-microsoft-365-too-complex-for-humans-to-understand-blog-by-tony-redmond
- Office 365 for IT Pros, the subscription book Paul recommends: https://office365itpros.com
- M365 Maps by Aaron Dinnage, visual SKU and feature breakdowns: https://m365maps.com
- jumpto365, the Periodic Table of Microsoft 365: https://www.jumpto365.com
- Microsoft Learn, Microsoft 365 and Office 365 service descriptions: https://learn.microsoft.com/en-us/office365/servicedescriptions/office-365-service-descriptions-technet-library
- Microsoft, Business Basic, Standard and Premium comparison: https://aka.ms/M365BusinessPlans
- 404 Media, companies are throttling employee AI use because it is too expensive: https://www.404media.co/companies-are-throttling-employees-ai-use-because-its-too-expensive/
- Cloudflare, new AI traffic options for search, agent and training bots: https://blog.cloudflare.com/content-independence-day-ai-options/
- SysAdmin Weekly: https://www.sysadminweekly.com
- SysAdmin Weekly Newsletter: https://newsletter.sysadminweekly.com
- AndyOnTech: https://www.andyontech.com
- Project Runspace: https://www.projectrunspace.org
- GitHub Discussions: https://github.com/ProjectRunspace/sysadmin-weekly/discussions
