TL;DR: Microsoft Volume Licensing is Microsoft’s business purchasing model for buying and managing software at scale, usually through a Cloud Solution Provider (CSP) or commercial agreements like the Microsoft Customer Agreement (MCA) or an Enterprise Agreement. It supports products like Windows, Microsoft 365, and Windows Server, and typically uses MAK, KMS, or ADBA to simplify deployment and compliance.
Microsoft Volume Licensing refers to purchasing Microsoft software licenses in bulk for organizations — typically through a Cloud Solution Provider (CSP) or under a Microsoft Customer Agreement (MCA). Volume licensing can include Windows upgrades, Windows Enterprise, Microsoft Office, Windows Server, and other Microsoft products. Activation is typically handled via Multiple Activation Keys (MAK), Key Management Services (KMS), or Active Directory-Based Activation (ADBA), depending on the organization’s setup.
Microsoft ended the Open License program for commercial customers, and most new purchases now flow through CSP or enterprise agreements.
It’s important to note that Windows volume licenses are typically device-based. Windows Enterprise and Windows 11 licenses sold through many commercial licensing programs are typically upgrade licenses, so devices generally need a qualifying base Windows license already in place. Other Microsoft products available through volume licensing, such as Office, Windows Server, and SQL Server, may be licensed per device, per user, or per core, depending on the product and agreement type.
How does Microsoft Volume Licensing work?
In practice, volume licensing works like this: You buy licenses via CSP or an agreement, assign entitlements in your tenant/portal, then activate devices using a method that matches your environment (MAK, KMS, or ADBA). MAK is common for smaller orgs or isolated machines, KMS is common for larger internal networks, and ADBA activates domain-joined Windows automatically.
Which volume activation method should you use (MAK, KMS, or ADBA)?
Most organizations choose between three Windows volume activation options based on how their devices connect and how much activation infrastructure they want to run: MAK (direct with Microsoft), KMS (internal activation server), or ADBA (automatic activation for domain-joined devices).
Use MAK if devices can activate directly with Microsoft and you want a simple approach without running an internal activation service. MAK includes a predetermined number of activations.
Use KMS if you need internal activation at scale, especially in larger or restricted environments. Devices activate against an internal KMS host instead of connecting to Microsoft.
Use ADBA if most devices are domain-joined and regularly connect to your on-prem network. ADBA activates eligible Windows devices automatically through Active Directory Domain Services (AD DS).
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What are the benefits of using Microsoft Volume Licensing?
There are several key benefits of using this type of licensing arrangement — namely in terms of cost and ease of management.
Affordable cost
Microsoft offers sizable discounts through volume licensing. When buying licensing in bulk, you only pay for what you need. You choose your add-ons and the terms of your agreement — no surprise fees or gotchas.
Ease of management
Another benefit of using Microsoft Volume Licensing is centralized license management. Instead of tracking individual product keys for every device, subscriptions (like Microsoft 365) are assigned and managed in the Microsoft 365 admin center or other portals, depending on your agreement type. Activation is then handled in your environment using MAK, KMS, or Active Directory-based activation (ADBA), depending on how your endpoints connect.
For many modern Microsoft products — especially cloud services like Microsoft 365 Apps — licensing is tied to user or device assignments in your organization’s tenant rather than individual product keys. That means less spreadsheet chaos and better visibility into who has access to what.
Microsoft Software Assurance
Some volume licensing agreements (primarily Enterprise Agreements) offer the option to add Software Assurance (SA). SA is an additional cost and can include benefits such as upgrade rights, deployment planning services, training vouchers, and license mobility, depending on the product and agreement type.
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Volume licensing vs. subscription licensing: What is the difference?
A common point of confusion when looking at volume licensing is how it differs from subscription licensing.
Volume licensing refers to how software is purchased (typically in bulk through agreements or CSP), while subscription licensing refers to how software is paid for (recurring vs. perpetual). Both operating systems and productivity software can be licensed either perpetually or via subscription, depending on the product.
How much does Microsoft Volume Licensing cost?
If you try to find pricing information for Microsoft Volume Licensing on Microsoft’s website, you may be left scratching your head.
That’s because there are several business-dependent factors that come into play, like the size of your business and which product(s) you want to include in your licenses.
You can get a quote by reaching out to your favorite software reseller or CSP.
How do you choose the right Microsoft licensing program?
Choosing the right license for your business can be a bit tricky — because would it even be part of a sysadmin’s role if it weren’t a little complicated?
At a high level, you have two choices when it comes to Microsoft Volume Licensing for operating systems: a perpetual license and a subscription license (not to be confused with subscription licensing for Microsoft software — we weren’t kidding about this being complicated).
Organizations can license Windows Enterprise either through a perpetual upgrade license or through a per-user subscription model (often bundled with Microsoft 365 E3 or E5). Subscription licensing typically ties Windows Enterprise rights to a licensed user via Microsoft Entra ID (formerly Azure AD), allowing that user to access Enterprise features across their devices.
But there’s more to choosing the right license than perpetual vs. subscription licensing. That’s one reason why Microsoft offers licensing through authorized Microsoft partners (resellers). These resellers know all the ins and outs of these licenses and can help you identify which plan is best for your business’s needs.
Think of Microsoft resellers as your gateway to Microsoft products. Whether you’re in the market for a Microsoft Volume License — or even just Microsoft Office products — resellers can help you figure out exactly which products and licenses meet the needs of your business.
How do you get started with Microsoft Volume Licensing?
Enterprise licensing — whether perpetual volume licenses or subscription-based Windows Enterprise — is typically the cleanest approach for imaging your fleet. It's the most sustainable method with the fewest moving parts. It's the easiest for IT to manage, and it’s the most compliant.
To get started, all you need to do is contact your favorite software reseller or cloud service provider. Tell them you need a Microsoft Volume Licensing agreement and how many machines you have.
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