License & Subscription Issues

Do Microsoft 365 E3 Licenses Cover MSP-Hosted SharePoint?

Maira MehtabMaira Mehtab Oct 22, 2026 869 views

Question details

The user wants to know if their Microsoft 365 E3 licenses grant access to a SharePoint Server hosted in a Managed Service Provider (MSP) virtual environment.

Do Microsoft 365 E3 Licenses Cover MSP-Hosted SharePoint?
Product
Microsoft 365 E3 / SharePoint Server
Device & OS
not provided
Scenario
Determining licensing compliance when accessing a SharePoint Server that is hosted on a third-party MSP's virtual machines rather than an internal on-premises deployment.
Observed behavior
Uncertainty regarding whether standard E3 CAL rights apply to MSP-hosted environments, or if additional SALs, CALs, and server rights are required.
Before you start

Gather the details of your current Microsoft Enterprise Agreement, the specific version of SharePoint Server your MSP is hosting, and the terms of your hosting arrangement before verifying your licensing needs.

Solution 1Recommended

Verify Licensing Terms and Hosting Arrangements

Determine your licensing compliance by checking your MSP's hosting model and consulting Microsoft's specific terms for virtualized and provider-hosted deployments.

An MSP-hosted virtual machine may not qualify for the same licensing treatment as an organization's internal on-premises deployment.

Licensing compliance heavily depends on the hosting arrangement, the SharePoint Server version, specific access rights, and the applicable Microsoft volume licensing agreement.

1
Identify the Hosting Model

Check with your MSP to determine if they are using a dedicated hosting model or shared hardware. This dictates whether you need Subscriber Access Licenses (SALs) via the Service Provider License Agreement (SPLA) or if License Mobility applies.

2
Review Product Terms in VLSC

Log in to your Microsoft Volume Licensing Service Center (VLSC) or the Microsoft 365 admin center to review the specific product terms and on-premises use rights associated with your E3 subscription.

3
Consult a Licensing Specialist

Reach out to your Microsoft account representative or a qualified, certified Microsoft licensing partner to definitively confirm your requirements for SALs, CALs, and server rights in this specific MSP environment.

Verify Licensing Terms and Hosting Arrangements
Seek Community Guidance: If you need preliminary guidance, you can also ask in the Microsoft Q&A community using the 'SharePoint Server' and 'SharePoint Server management' tags.
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Frequently Asked Questions

What are CALs and SALs in SharePoint licensing?

CAL stands for Client Access License, which gives users the right to access an on-premises server's services. SAL stands for Subscriber Access License, which is typically used in Service Provider License Agreements (SPLA) when accessing software hosted by an MSP.

Does Microsoft 365 E3 include SharePoint CALs?

Yes, Microsoft 365 E3 generally includes standard and enterprise CAL equivalent rights for on-premises SharePoint Servers. However, using these rights in a third-party hosted environment may require specific License Mobility rights.

Can I use License Mobility for a SharePoint Server hosted by an MSP?

License Mobility through Software Assurance allows you to deploy certain application servers, including SharePoint Server, in an authorized service provider's shared hosted environment. You must verify if your MSP is an Authorized Mobility Partner.