Endpoint Services, MECM, M365 User Based Licensing Configuration Item

Overview

How can I convert M365 Device Based Licensing to User Based Licensing?

Systems

Microsoft Endpoint Configuration Manager (MECM)

Intended Audience

University of Illinois IT Pros leveraging MECM, hosted by Technology Services' Endpoint Services team

General Information

As the managed M365 Office applications in MECM are configured for device-based licensing, a Configuration Item can be deployed to convert the license type to user-based.

Configuration Item/Baseline

The ‘Set Office 365 User-Based Licensing’ Configuration Item, under ‘\Assets and Compliance\Overview\Compliance Settings\Configuration Items’ in the MECM console, will set the registry key necessary to enable user-based licensing. It can be deployed via the ‘Office 365 User-Based Licensing’ Configuration Baseline, or as part of your own Configuration Baseline.

We recommend deploying it to a device collection that contains only the devices that you wish to change the licensing type on. Ensure that the deployment is set to  ‘Remediate noncompliant rules where supported’. Configure the evaluation schedule and maintenance window behavior to best suit your needs.

Deployment monitoring and compliance can be tracked under ‘\Monitoring\Overview\Deployments’ in the console.

Should you need to revert to device-based licensing, the ‘Set Office 365 Device-Based Licensing’ Configuration Item can be deployed to those devices.

User Experience

  • Users will need to restart any M365 apps that were open when the CI was applied. They will then be prompted to sign-in, e.g.:

Sign in example

  • Once signed-in, the licensing type can be confirmed by:
    • Opening any M365 application other than Outlook on the device.
    • Selecting the ‘Account’ tab (or selecting File > Account)

User based will show 'Subscription Product for netid@illinois.edu'

Account tab user based example 

Device based will show 'Subscription Product for This device'


Device based license example

Considerations

  • Each device configured in this way will have the selected licensing type apply to all users of that device.
  • We recommend not deploying the CI/CB to shared devices.
  • Use of M365 apps on a device with user-based licensed will contribute to that user’s maximum number of allowed activations.
  • See this article for more information on activation limits and how to remove unused activations.
  • Do not deploy both ‘Set Office 365 User-Based Licensing’ and ‘Set Office 365 Device-Based Licensing’ Configuration Items to the same device.


Contact the EPS team



Keywords:
M365, Office, Office 365, User based licensing, Device based licensing, "software center" distributed EPS SCCM windows endpoint TechS-EPS-SCCM MECM 
Doc ID:
165142
Owned by:
Shane G. in University of Illinois Technology Services
Created:
2026-10-27
Updated:
2026-10-29
Sites:
University of Illinois Technology Services