Microsoft Office 365 Licensing Information

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What is the Difference between G1 and G3 licensing?

As part of our migration to Office 365, we are negotiating two licensing bands in our Microsoft Enterprise Agreement.  They are called G1 and G3 Government.  The table below highlights the differences between the two bands.

Below is a summary  of items in scope for our O365 migration project.

What the State of Vermont is licensed for:



Online versions of Office including Outlook, Word, Excel, PowerPoint, Skype for Business, Access and more



Email Online -- includes calendar, tasks, and contacts with a 50 GB inbox



Email Archiving



Email Encryption



Active Sync (for Mobile Devices (smartphones & tablets)



Full, installed Office applications Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Skype for Business, and Access on up to 5 PCs or Macs



Office on tablets and phones for the full, installed Office experience on up to 5 tablets and 5 phones per user



File storage and sharing with storage/user (OneDrive for Business) (For personal drives on OneDrive for Business only – not shared drives)

G3 users have a 5 TB limit, and G1 users have a 1 TB limit



Compliance and information protection - Legal hold for email and files Checkmark Checkmark

SharePoint Online -- Site Contributor



SharePoint Online -- Site Administrator/Site Collection Administrator/Site Owner



NOTE: Vendor/partner accounts (both Email and SharePoint) will be eligible for both G1 and G3 licensing (HOWEVER, MOST VENDORS SHOULD BE FINE WITH A G1 LICENSE -- THAT IS THE STANDARD).  The cost for those accounts are not included in the allocation, and departments/agencies will be assessed a fee per account per year.  This will be billed as part of the Service Level Agreement Demand Services billing annually.  (See Office 365: Cost Information on our FAQ page)

For a comprehensive description of Office 365 services, list of items included in licensing, please to go this Microsoft Website:

For a comprehensive list of items included in licensing, go to this Microsoft Website (document updated 7/2014) and download the Excel Pivot table:

*Please see screenshot below of items in blue to select when you click on the link above, and you will be presented with a comprehensive list of service offerings  between G1 and G3.

Office 365 Licensing Selections

What is the cost of G1 and G3 licenses per account?

  • G1 costs $110 annually
  • G3 costs $313 annually

Can you give examples of a G1 user vs. a G3 user?  I don't know which I should choose.

  • G1 -- A light user that only needs basic functionality which is included with Online email and online MS Office applications.  A G1 user also includes SharePoint contributor rights.  Some examples are:
    • Vendors/contractors should be G1, unless there are extenuating circumstances (REMEMBER, additional costs are involved with vendors and your agency/department will be billed additionally)
    • State employee who is not in the office often, such as maintenance workers, plow truck drivers -- they check their email perhaps once a week and share a desktop with other users
    • Temps/Interns who need basic functionality in Office to complete their jobs
  • G3 -- A user with full desktop MS Office applications installed, which includes full functionality of the Office suite, and can include SharePoint Administrator rights as well as the Online MS Office applications (same as G1).  Some examples are:
    • Requires the full desktop installation of the current MS Office suite -- is a heavy user who uses Excel pivot tables, Word merge docs, etc.
    • Most users in this category are office workers -- have their own desktop/laptop and require local installation
    • SharePoint administrators

Office Online Service Descriptions:

What is a Vendor/Partner Account?

Some Agencies or Departments work very closely with contractors or vendors.  They request us to create “partner” accounts so that they can easily share the same information, and use our email and/or SharePoint services.  These accounts are for non-state employees.  This is to enable these vendor/partners to shares files on SharePoint, and to use our State email.  If they need email, their email address would be to differentiate them from state employees.

To further differentiate vendor/partner/contractor accounts from State Employees:

  • State Employee = employee assigned an employee ID from the VTHR system, logs in to submit timesheets
  • Vendor/Partner/Contractor – employee DOES NOT have an employee ID and cannot log in to the State’s VTHR system to enter time, or view paychecks.  This employee (regardless of their duties) should be considered a vendor/partner/contractor.  These employees are not part of the DHR headcount, which is how we pay State Employees’ O365 licensing through the DII Allocation.

Can you give an example of a vendor that would not need a G1 or G3 license (Active Directory account or SharePoint Online Only needed)

If a vendor/contractor (non-state employee)  does not need a partner email account, access to any of our SharePoint sites*, and access to any of our file shares, you can indicate Office 365:  N/A (not applicable).  They only need an active directory account.  See some examples below: 

  • Login/access to the DOC Offender Management System
  • Logon/access VDH Immunization Registry, EDRS
  • BGS Vendor accessing a HVAC system through Citrix portal
  • *Vendor/partner need SharePoint Only access -- can use External Sharing for SharePoint Online.  See below for more information on how to request this.

*Can I use External Sharing for SharePoint Online for my vendor/partner account?

Yes.  Please see documents below to request External Sharing for your SharePoint Online Site Collection.  (This will utilize the vendor/partner's personal WindowsLive ID, and is a no cost option to share information from your SharePoint Online site with your partners.)

How will Office 365 licenses be managed?

They will be managed through the Office 365 tenant.  Vendor licenses will be billed through the DII Service Level Agreements (SLA).

If we make a determination for a specific user and it needs to be changed later, we can adjust up from G1 to G3, correct?

Yes, at any time you can change from G1 to G3.

What version Office suite is included with the G3 license?

Office Professional Plus, currently at version 2016.

Is Microsoft Access included in both versions  -- G1 and G3?

Yes.  As described in the table above, Access is included in both the G1 (Online only) and G3 (online and full desktop Installation) versions.

Is there an option to participate only in the email portion of Office 365?

No.  The State of Vermont Enterprise Agreement is limited to G1 and G3 plans provided by Microsoft.

Is there an option to participate only in the SharePoint contributor portion of Office 365?

No.  The State of Vermont Enterprise Agreement is limited to G1 and G3 plans provided by Microsoft.

Will InfoPath be available to AHS users with the Office 365 upgrade?

With a G3 License for O365, that includes InfoPath.

What are the differences between the online Office applications and the fully installed Office applications?

Office Online Service Descriptions:

How to Decide to Use Outlook or Outlook Web App:

Office 365 Service Comparison:

Department of Information and Innovation
133 State Street
Montpelier, VT 05633
(802) 828-4141

For Customer Support, please call 802-828-6620 or toll free 855-828-6620

  • DII Service Desk:   Option 1
  • DII Telecom Helpdesk:  Option 2
  • DII Mainframe Helpdesk:   Option 3
  • Vision/HR Helpdesk: 802-828-6700