Office (perpetual)

It depends on whether you want a subscription or a one-time purchase, and whether you need the cloud services.

Microsoft 365 is a per-user subscription that gives you the latest Office desktop apps plus Exchange Online mail, OneDrive, Teams, and (on Business Standard and higher) SharePoint Online. New features arrive monthly. Cancel and the desktop apps go read-only after 30 days.

Office Home & Business 2024 (Retail) and Office LTSC 2024 (Volume) are one-time purchases — pay once, keep the apps forever, no cloud services included. Locked feature set: no new functionality, only security patches for 5 years. The fit is regulated, air-gapped, or kiosk environments — or anyone philosophically opposed to subscriptions.

Pick subscription (Microsoft 365 Apps / Business Standard) if you want: the latest features as they ship, cloud services (Teams, Exchange Online, OneDrive), Copilot, and predictable per-user monthly pricing.

Pick perpetual (Office LTSC 2024 via Volume Licensing) if you need: a one-time purchase, no cloud dependency, locked feature set for regulated environments, or offline-only operation. The trade-off is no new features for 5 years and no Copilot, ever.

For most knowledge-worker organizations, subscription wins on TCO over a 3-year horizon. Perpetual wins for specialized, locked-down scenarios.

No. Microsoft 365 business and enterprise suites do not include the full-featured versions of Visio or Project. These applications are considered specialized "add-on" services and must be licensed separately from your core productivity suite (such as Microsoft 365 Business Premium, E3, or E5).

The Exception: Visio in Microsoft 365

While the professional versions are separate, it is important to note that a "light" version of Visio is now included in most Microsoft 365 commercial subscriptions at no extra cost. This web-only version allows users to create and edit basic flowcharts and diagrams. However, if your users require advanced features—such as data linking, floor plans, engineering schematics, or the dedicated desktop application—you must purchase a specific Visio license.

Licensing Options for Visio and Project

Organizations typically choose between two main licensing models: the modern subscription model (User Subscription Licenses) and the traditional perpetual model (Device/Desktop SKUs).

• Subscription Plans (Monthly/Annual): These are billed per user and allow the software to be installed on up to five concurrent devices. These versions are continuously updated with new features and integrate natively with other Microsoft 365 services like Teams and Power BI.
  • Visio Plan 1: Web-only version with more templates than the free version.
  • Visio Plan 2: Includes the desktop application and advanced features like data connectivity.
  • Project Plan 1: Web-based project management (Project for the Web).
  • Project Plan 3 & 5: Includes the full Project Professional desktop application and resource management capabilities.
• Perpetual Licenses (One-time purchase): These are "Buy it once" versions (e.g., Visio 2021 or Project 2021). They are tied to a specific device rather than a user. While they lack the cloud-collaboration features and ongoing updates of the subscription plans, they are often preferred by organizations with strict static budget cycles or air-gapped environments.

Comparison of Common Licensing Tiers

Practical Considerations for Procurement

When adding these tools to your environment, the most efficient route is usually the Cloud Solution Provider (CSP) program. This allows you to add Visio or Project subscriptions to your existing Microsoft 365 tenant, consolidating all seats onto a single monthly invoice. This approach is highly scalable; you can add a single license for one project manager and remove it when the project concludes.

Be aware of version compatibility. If your organization uses "Click-to-Run" versions of Microsoft 365 Apps for Enterprise, you generally cannot install a perpetual, volume-licensed (MSI) version of Visio or Project on the same machine. In most modern workplaces, sticking to the subscription-based Plan 2 (Visio) or Plan 3 (Project) avoids these installation conflicts and ensures all users are on the same version of the Office engine.

Finally, avoid looking for "OEM" versions of this software. While hardware manufacturers sometimes pre-install Office, specialized tools like Visio and Project are almost exclusively sold through retail or volume licensing channels, not as bundled hardware components for end users.

Up to 50 GB, no. A shared mailbox in Exchange Online does not require a license as long as no user signs into it directly — staff access it as a delegated mailbox from their own licensed account. Above 50 GB the shared mailbox must be assigned a Microsoft 365 license (typically Exchange Online Plan 2).

If you need In-Place Archive on the shared mailbox, that also requires a license. Same if you want to enable Litigation Hold for compliance — those are licensed features, even on a shared mailbox.

Cloud Solution Provider (CSP) is the modern Microsoft channel where a partner manages your subscription. Billing is monthly or annual, seats can scale up and down each month, and the partner handles support tickets. Best for cloud-first workloads (Microsoft 365, Dynamics 365, Azure) where flexibility matters.

Volume Licensing (Open Value, MPSA, Enterprise Agreement) is the traditional channel for perpetual on-premises licenses — Windows Server, SQL Server, Office LTSC. Three-year commitments are typical, with optional Software Assurance for upgrade rights. Best for perpetual server licensing where you want to own the asset.

Most organizations use both: CSP for the cloud subscriptions and Volume Licensing for the on-prem perpetual licenses.

Microsoft retired the old VLSC (Volume Licensing Service Center) in 2024 and consolidated all licensing management into the Microsoft 365 Admin Center and the Microsoft Cloud Partner Program portal. Volume Licensing customers now download keys, view orders and manage agreements under "Billing → Your products" in the Microsoft 365 Admin Center, signed in with the tenant's global admin or billing admin role.

If you still see references to VLSC in older documentation, mentally swap it for the M365 Admin Center.