Exchange SE CAL requirement satisfied with M365 E3 license?

Hi @Kurt Joseph,

please excuse me for asking, but from my point of view, there are different statements in different channels, and the product terms already contain a little surprise that unfortunately only comes to light when you examine them from a contractual perspective.

Source

https://techcommunity.microsoft.com/blog/exchange/upgrading-your-organization-from-current-versions-to-exchange-server-se/4241305

Paragraph - "Can you clarify the licence requirements for Exchange Server SE?"

For Exchange Server SE, in addition to purchasing the required Server licences and CALs, customers must also maintain an active subscription. This means purchasing either:

Cloud subscription licences for all users and devices that access Exchange Server SE (for example, Microsoft 365 E3 or E5 licences); or

Exchange Server SE Server licences and CALs with Software Assurance (SA).

Other cloud subscription licences besides Microsoft 365 E3/E5 also satisfy, but we’re calling E3/E5 out because they include Extended Use Rights that provide an unlimited number of Office Server licences at no additional charge (see the Microsoft Product Terms for full details).

If you don't buy cloud subscription licences, then Server licences and CALs you buy must have Software Assurance.

**

Seems to be well described – BUT in my opinion, a crucial piece of information is missing! The Product Terms are then very clear.

What does this mean?

Microsoft Product Terms – Microsoft Customer Agreement (MCA)

For customers who purchase their Microsoft 365 E3/E5 cloud subscription licences based on the Microsoft Customer Agreement (MCA) through a Cloud Service Provider (CSP), Extended Use Rights for Microsoft 365 E3/E5 do not apply.

If you look under

Microsoft Product Terms - Microsoft Product and Services Agreement (MPSA)

you will find a crucial note in the paragraph "Extended Use Rights for Microsoft 365 E3/E5"

https://www.microsoft.com/licensing/terms/productoffering/Microsoft365/MPSA#clause-1349-h3-1

This entitlement does not apply to User SLs acquired under the Microsoft Cloud Agreement and Microsoft Customer Agreement.

As a result, customers who have purchased their Microsoft 365 E3/E5 cloud subscription licences based on the Microsoft Customer Agreement (MCA) must purchase a Microsoft Exchange Server 2019 licence including Software Assurance for each Microsoft Exchange Server they operate via a contractual relationship other than MCA.

Am I correct in this assessment?

Kind Regards

Hi @Kurt Joseph
Thank you for posting your question in the Microsoft Q&A forum. 

To use Exchange Server Subscription Edition (SE), customers must maintain an active subscription along with the required Server licenses and Client Access Licenses (CALs). This means purchasing either: 

-Cloud subscription licenses for all users and devices that access Exchange Server SE such as Microsoft 365 E3 or E5. 

-Exchange Server SE Server licenses and CALs with Software Assurance purchased through Volume Licensing. 

If you choose Microsoft 365 E3 under the Cloud Solution Provider program, you do not need separate CALs or Software Assurance. The Microsoft 365 E3 subscription includes Extended Use Rights, which allow unlimited on-premises deployment of Office Servers including Exchange Server without additional CAL purchases. You will still need the Exchange Server SE license for the actual server software. 

You can read more at: Upgrading your organization from current versions to Exchange Server SE | Microsoft Community Hub 

I hope this helps clarify the licensing requirements. 

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