Can I transfer a user license in Microsoft 365 Business Standard?

Yes, you can transfer a user license in Microsoft 365 Business Standard by removing the license from an inactive or departing user and reassigning it to another user. This ensures optimal use of your subscription and minimizes additional costs for new licenses.

Steps to Transfer a User License

1. Remove the License from the Current User

• What happens: Removing the license disables the user’s access to Microsoft 365 services but retains their data for up to 30 days (default retention period).
• Steps:
  1. Log in to the Microsoft 365 Admin Center.
  2. Navigate to Users > Active users.
  3. Select the user from whom you want to remove the license.
  4. Click Licenses and apps.
  5. Uncheck the license(s) assigned to the user.
  6. Save changes.

2. Assign the License to a New User

• What happens: Assigning the license enables the new user to access Microsoft 365 Business Standard apps and services.
• Steps:
  1. Go to Users > Active users in the Admin Center.
  2. Click Add a user or select an existing user account.
  3. Under Licenses and apps, check the box for Microsoft 365 Business Standard.
  4. Save changes.

Transferring Data Along with the License (Optional)

If the new user needs access to data from the original user, consider these options:

1. Transfer Email Data

• Use the Exchange Admin Center to export the departing user’s email data to a PST file and import it into the new user’s mailbox.
• Alternatively, grant the new user access to the old mailbox by converting it into a Shared Mailbox.

2. Transfer OneDrive Files

• Access the old user’s OneDrive files by transferring ownership through the Admin Center.
• Steps:
  1. Navigate to Users > Active users.
  2. Select the old user and click OneDrive settings.
  3. Choose Create link to files and share it with the new user or transfer ownership.

Key Considerations

• License availability: Ensure the current license is not tied to compliance or retention policies before transferring.
• Data retention: Data is retained for 30 days by default after a license is removed. After this period, data is permanently deleted unless extended retention policies are applied.
• Security: Before reassigning the license, block the sign-in for the old user to prevent unauthorized access.

Benefits of License Transfer

1. Cost efficiency: Reusing licenses avoids unnecessary subscription costs.
2. Operational continuity: Allows smooth transitions for new hires or role changes.
3. Resource optimization: Ensures licenses are allocated effectively to active users.

Need help managing licenses in Microsoft 365?
Medha Cloud offers expert support for license management and user transitions in Microsoft 365 Business Standard.