Joe - What Brian said is correct.
Also, I can state that we have had a mix of E1, E3, and E5 licenses for our users. All users are mastered from on-prem AD, and then synced to O365 via Azure AD Connect. No "Cloud-only" accounts except for a couple of oddball exceptions. Recently (within the last 12 months), we upgraded all of our E1 users to E3, partly because of some funky differences between how E1 and E3 worked with OneDrive and we wanted consistency across the board. I don't remember the details, but can find out if you have questions, as one of my employees was running that project. Hope this helps. Jonathan ________________________________ From: [email protected] <[email protected]> on behalf of Brian Desmond <[email protected]> Sent: Saturday, February 25, 2017 11:14:24 AM To: [email protected] Subject: [NTSysADM] RE: Office 365 licensing question Every user needs to have an Azure AD account to use any Office 365 service. Whether that account is mastered in Azure AD (e.g. you create it directly there), or it’s synchronized from your on-premises AD is up to you. Thanks, Brian Desmond w – 312.625.1438 | c – 312.731.3132 From: [email protected] [mailto:[email protected]] On Behalf Of Heaton, Joseph@Wildlife Sent: Friday, February 24, 2017 4:59 PM To: 'NT System Admin Issues Discussion list' <[email protected]> Subject: [NTSysADM] Office 365 licensing question For the E1 licensing, I’ve heard a rumor that they have to be tied to Azure AD, not on-prem AD. Does anyone know if that’s correct? We have several hundred employees that don’t need a computer or Office, but do need e-mail, for timesheet purposes. We want to give those folks E1 licenses. Joe Heaton Information Technology Operations Branch Data and Technology Division CA Department of Fish and Wildlife 1700 9th Street, 3rd Floor Sacramento, CA 95811 Desk: (916) 323-1284 Every Californian should conserve water. Find out how at: [SaveOurWater_Logo]<http://saveourwater.com/> SaveOurWater.com<http://saveourwater.com/> · Drought.CA.gov<http://drought.ca.gov/> NOTE: This message and any attachments is intended solely for the use of the individual or entity to which it is addressed and may contain information that is non-public, proprietary, legally privileged, confidential, and/or exempt from disclosure. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the original sender immediately by telephone or return email and destroy or delete this message along with any attachments immediately.

