License & Subscription Issues

Do All Microsoft 365 Email Accounts Require a License?

Nimra Malik Oct 15, 2026 868 views

Question details

Determine whether individual mailboxes in Microsoft 365 strictly require paid licenses and explore cost-effective alternatives for providing company email addresses.

Do All Microsoft 365 Email Accounts Require a Paid License?

Product: Microsoft 365
Device & OS: not provided
Scenario: Setting up company email addresses for multiple employees where only some users require full Microsoft 365 services.
Observed behavior: Seeking clarification on whether every single email account demands a paid subscription and how to structure accounts economically.

Before you start

Evaluate the specific email needs of your staff to distinguish between employees who require dedicated personal mailboxes and those who only need access to generic company addresses (like info@ or sales@).

Solution 1Recommended

Create Shared Mailboxes for Departmental Use

Set up shared mailboxes for generic company addresses, which allow multiple licensed users to access the email without requiring an additional paid license.

Shared mailboxes are ideal for generic addresses such as support@ or info@. They do not have their own usernames or passwords. Instead, users who already have a paid Microsoft 365 license can be granted permissions to view and send emails from the shared mailbox.

Access the Admin Center

Navigate to Shared Mailboxes

In the left navigation menu, go to 'Teams & groups' and select 'Shared mailboxes'.

Add a Shared Mailbox

Click on 'Add a shared mailbox', enter a name and the email address you want to create, and click 'Save changes'.

Assign Members

Under 'Next steps', click 'Add members to this mailbox', select the licensed users who need access, and save the settings.

Create Shared Mailboxes for Departmental Use

Cost Savings: Shared mailboxes up to 50 GB are free and do not consume a Microsoft 365 license.

Solution 2

Use Email Aliases for Single Users with Multiple Roles

Add aliases to existing licensed accounts if an employee needs to receive emails at multiple different addresses.

Solution 3

Assign Paid Licenses for Individual Employee Mailboxes

Assign an appropriate Microsoft 365 license to users who require their own dedicated mailbox, unique login credentials, and full Office services.

Free Microsoft Office alternative

Reduce Overall Software Costs with WPS Office

While you optimize your Microsoft 365 email licenses, you can further reduce costs by outfitting your team with WPS Office. It provides powerful productivity tools that are highly compatible with Microsoft Office formats, allowing employees who only need basic email and document editing to work seamlessly without expensive premium subscriptions.

1. Download WPS Office: Visit the official WPS Office website and download the free installation package for Windows, Mac, or Linux.
2. Install the Software: Run the downloaded installer and follow the simple on-screen instructions to complete the setup.
3. Open Existing Documents: Launch WPS Office and open your existing .docx, .xlsx, or .pptx files directly to continue working without any formatting loss.

Fully compatible with Microsoft Word, Excel, and PowerPoint formats.Free and lightweight, ideal for employees who don't require expensive premium Microsoft 365 licenses.Familiar user interface with zero learning curve for seamless team migration.Built-in PDF editing, cloud collaboration, and cross-platform support.

microsoft office alternative - wps office

Frequently Asked Questions

Can multiple users share one Microsoft 365 licensed account to save money?

No. Microsoft's terms of service prohibit sharing a single licensed user account (username and password) among multiple people. Instead, you should use a Shared Mailbox, which allows multiple distinct, licensed users to access a common email address compliantly.

Do shared mailboxes have storage limits in Microsoft 365?

Yes. A standard Shared Mailbox in Microsoft 365 includes 50 GB of storage for free without a license. If the mailbox exceeds 50 GB, you must assign an Exchange Online Plan 2 license to it, which increases the storage limit to 100 GB.

Can I keep some email accounts on my old provider and use Microsoft 365 for others?

Yes, this is known as a split domain routing setup. You can configure your domain's DNS records to point to your primary email provider, and then set up routing rules in the Exchange admin center to forward specific email addresses to Microsoft 365.

Login & Account Issues