A company plans to purchase Microsoft 365. You need to give management an overview of the Microsoft 365 pricing model. Which of the following describes how the company will be billed for Microsoft…

A consumption-based (pay-per-use) billing model based on computing resources describes cloud infrastructure services like Azure, not Microsoft 365, which charges per user regardless of how much each user consumes.

Microsoft 365 is a subscription service, not a perpetual license; there is no one-time purchase that grants permanent ownership, as access requires ongoing subscription payments.

Microsoft 365 licenses are not shareable single licenses; each user must have their own individual license, and the subscription cost scales with the number of users rather than being a flat annual fee for unlimited users.

Microsoft 365 is licensed on a per-user subscription basis, meaning each individual user requires their own license, and the organization is billed based on the total count of user licenses needed. Subscriptions can be paid monthly or annually, and licenses can be added or removed as the organization's headcount changes, making it a scalable model tied directly to user count.