Microsoft 365 User

Who is a Microsoft 365 User?

A Microsoft 365 User refers to any individual account that can sign in and access Microsoft 365 services. These users fall into two broad categories:

• Administrators – Users with elevated privileges who manage the tenant, including user creation, license assignment, group management, and security configurations.
• End-users – Individuals who use Microsoft 365 apps such as Outlook, Teams, Word, Excel, and SharePoint to communicate, collaborate, and perform daily tasks.

Users can belong to an organization, school, or nonprofit and their level of access depends on their role, assigned license, and organizational policies.

Can You Create Microsoft 365 Users for Free?

Yes, it is possible to create Microsoft 365 users for free, but with certain limitations:

• Free Edition Tenants: Microsoft allows you to create a small number of user accounts in free Microsoft 365 tenants with limited capabilities.
• Microsoft 365 Education A1: Educational institutions can create free users under the A1 plan.
• Microsoft 365 for Nonprofits: Eligible nonprofits can create users for free with limited licenses (e.g., Microsoft 365 Business Basic for Nonprofits).

However, full features (like access to desktop apps or advanced security) require assigning paid licenses.

Different Ways of Creating a Microsoft 365 User

You can create users in Microsoft 365 using multiple methods, depending on your administrative preference or scale:

1. Microsoft 365 Admin Center
• Navigate to admin.microsoft.com
• Go to Users > Active Users > Add a User
• Fill in the required details and assign licenses
2. Entra Admin Center (formerly Azure AD)
• Useful for advanced identity and role assignments
3. Graph PowerShell
• Use the New-MgUser cmdlet to programmatically create user accounts
• Ideal for bulk creation and automation
4. CSV Import
• Available in Admin Center for adding multiple users at once
5. Microsoft 365 APIs
• Developers can use Microsoft Graph API endpoints to create and manage users

Types of Microsoft 365 Users

Understanding user types helps with license management, access control, and reporting:

Type	Description
Licensed Users	Assigned at least one Microsoft 365 license and can use paid features
Unlicensed Users	Have an account but cannot access premium apps unless a license is assigned
Active Users	Currently using or recently used the Microsoft 365 services
Inactive Users	Accounts that haven't signed in for a long period or have been deprovisioned
Sign-In Enabled	Can log in to Microsoft 365 services
Sign-In Disabled	Blocked from signing in, often for security or offboarding purposes
Account Locked	Temporarily blocked due to failed sign-in attempts or suspicious activity
Account Unlocked	Active and accessible user account