Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportHard

A Microsoft 365 administrator is evaluating the cost implications of moving from on-premises Exchange to Exchange Online. They estimate 200 users will require a license that includes Exchange Online Plan 1. The annual cost for Exchange Online Plan 1 is $4.00 per user per month. What is the total annual cost for these licenses?

  1. A$9,600.00
  2. B$800.00
  3. C$4,800.00
  4. D$96,000.00
Show answer & explanation

Correct answer: A. $9,600.00

The total annual cost is calculated by multiplying the per-user per-month cost by the number of users and then by 12 months. So, 200 users * $4.00/user/month * 12 months = $9,600.00.

Why the other options are wrong

  • B. This is only the cost for 200 users for one month (200 * $4).
  • C. This is the cost for 100 users for one year (100 * $4 * 12) or 200 users for 6 months (200 * $4 * 6).
  • D. This is an overestimation, possibly multiplying by 100 or 1000 instead of 12 months.

Microsoft 365 Cost Calculation

Determining the total expenditure for Microsoft 365 licenses based on per-user costs and subscription duration.

  • Costs are typically quoted per user per month.
  • Annual costs require multiplying monthly rates by 12.
  • Total cost is (users * monthly rate * 12) for annual figures.

Memory trick: Users times rate times months equals your yearly bill.

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