Mike Austin explains M365 step up licensing: upgrading from a lower-tier license like E3 to E5 within an enterprise agreement, rather than buying E5 outright. Many clients don't actually need the full E5 package.
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So again, if I have a Microsoft 365 E3, I can step up to E5. If I have an M365E3, I can step up to e5. Or I could just buy an Office 365 E5. So when you use any A step up, the difference between a step up and just buying an E5 license is if I already have a license in place that is a lower version, then I would step up versus buying the full E5 product. So typically where these are used is I'm in an enterprise agreement. I signed up for the E3 product initially. Eighteen months later I decide I need the E5 product. I step up to the E5 product and I move from there. Now you do not need to step up to the full E5. We have a lot of clients that are looking at certain portions of this product here and they think that they need to step up to a full M365E5 and they really don't.