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
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