What is an Original SKU?
Create a Original SKU (Stock Keeping Unit) is the traditional Microsoft 365 licensing model. It consists of several individual components, including Office 365, Enterprise Mobility & Security (EMS), Microsoft Defender for Endpoint, and Extra Features. When you purchase an Original SKU, these components appear separately in the License Summary in the Microsoft 365 Admin Portal. Licenses are also provisioned per component, meaning that all components must be assigned to a user to fully activate all online services.
Windows E3 is also listed in the License Summary, but this is an on-premises product and does not appear as a user subscription license. This structure offers flexibility but can be complex when managing licenses and assigning them to users.
What is a Unified SKU?
Create a Unified SKU Bundles all Microsoft 365 online services into a single license. This license appears as a single product in the Admin Portal. The individual services, such as Office 365, EMS, Defender, and Extra Features, are provisioned as a single unified license. This means you only need to assign one license to a user to access all services.
Windows E3 still appears as a separate component in the License Summary, but it technically belongs to the Microsoft 365 bundle. The unified SKU simplifies and streamlines license management and reduces the risk of errors when assigning components.
Main differences
The difference between Original and Unified SKU lies entirely in the structure and provisioning of the licenses, not in the product features. Original SKU consists of separate components that must be assigned individually, while Unified SKU bundles all online services into a single license.
In the Microsoft 365 Admin Portal, you can distinguish SKUs as follows: with Original SKUs, you see the individual components in the License Summary, while Unified SKUs are displayed as a single Microsoft 365 license. You can also have both SKU types on a single tenant, but new licenses will only be purchased as Unified SKUs.
End of the Original SKU
Microsoft has officially announced that Original SKUs will be discontinued effective November 1, 2025. If your organization currently uses an Original SKU, you can continue using it until your next contract renewal. You can also continue performing seat adds and true-ups until then. However, you must switch to the corresponding Unified SKU at your next renewal.
The reason for discontinuing sales is that the Original SKU structure is not compatible with the pricing requirements that Microsoft must comply with as part of agreements with the European Commission on Microsoft Teams.
Closing note
The difference between Original SKU and Unified SKU lies in the structure and provisioning of the licenses. Original SKU consists of individual components that must be assigned separately, while Unified SKU bundles all online services into a single license. With the retirement of Original SKU, Unified SKU becomes the standard license for Microsoft 365, making management simpler and more transparent.
Do you have questions about which SKU is best for your organization or would you like assistance with the transition? Feel free to contact one of our licensing specialists for personalized advice.
Official source: Microsoft Licensing FAQ about SKUs