Microsoft Purview has become a cornerstone for organizations seeking to protect sensitive data, ensure regulatory compliance, and gain deeper visibility across multi-cloud and on-premises environments. However, as Purview’s capabilities expand, understanding its billing models has become increasingly important for effective cost management. Microsoft now offers two complementary billing models—Per-User Licensing and Pay-As-You-Go (PAYG)—giving organizations flexibility but also introducing complexity.
This article breaks down both models, explains their use cases, and offers practical guidance on selecting the right approach.
Why Billing Models Matter
As organizations adopt advanced capabilities such as AI governance, insider risk management, and multi-cloud data security, the traditional per-user licensing model often falls short. Basic DLP policies within Microsoft 365 workloads remain covered under standard licensing, but scenarios like AI auditing, data investigations, or non-Microsoft cloud integrations require the scalability and granularity offered by PAYG billing.
1. Per-User Licensing Model
This traditional model ties directly to Microsoft 365 and Windows licensing such as E3, E5, and A5. It offers predictable costs and covers most core compliance features.
What It Covers
- Microsoft 365 workloads: Exchange Online, SharePoint, OneDrive, Teams
- Endpoint DLP for Windows and macOS devices
- Core compliance, eDiscovery, and insider risk features
When to Use: Organizations focusing primarily on Microsoft 365 environments with predictable workloads will benefit from this licensing model.
2. Pay-As-You-Go (PAYG) Billing Model
PAYG introduces consumption-based pricing, requiring an Azure subscription linked to your Microsoft Purview tenant. It enables broader and more advanced capabilities beyond the M365 ecosystem.
Key Use Cases
| Capability | Billing Metric |
|---|---|
| Multi-cloud data governance | Assets/day + Data Governance Processing Units (DGPUs) |
| AI audit logs (e.g., Copilot, ChatGPT) | Records processed per message |
| Insider Risk Management (non-M365) | Data Security Processing Units (DSPUs) per 10,000 logs |
| eDiscovery for non-M365 AI data | GB stored/month |
| Data Security Investigations | Security Compute Units (SCUs) + storage usage |
3. Launch Timelines & Deadlines
- January 6, 2025: PAYG pricing for data governance became effective
- May 1, 2025: PAYG billing enabled for Generative AI protection features
- February 28 & June 30, 2025: Consent deadlines for activating new PAYG meters
Action Point: Admins must provide consent in the Microsoft Purview portal to use new PAYG features.
4. How to Choose the Right Model
| Scenario | Billing Model |
|---|---|
| Microsoft 365 DLP, eDiscovery, core compliance | Per-User Licensing |
| Multi-cloud classification & governance | PAYG |
| AI prompt/response protection & auditing | PAYG |
| Insider Risk Management for M365-only users | Per-User Licensing |
| Non-M365 or SaaS integrations (e.g., Box, Google Drive) | PAYG |
5. Best Practices for Cost Management
- Start with Per-User Licensing for core M365 workloads
- Link an Azure subscription early for PAYG capabilities
- Monitor usage via Azure Cost Management to prevent budget overruns
- Pilot advanced features like AI data auditing in small environments before scaling
- Build Power BI or Sentinel dashboards for cost transparency and alerts
Conclusion
Microsoft Purview’s dual billing model balances predictability and scalability for modern data security needs. Per-user licensing remains ideal for predictable, Microsoft 365-centric deployments, while PAYG billing unlocks advanced capabilities such as multi-cloud data governance, AI auditing, and high-volume investigations. In practice, most organizations will benefit from a hybrid approach—leveraging per-user licensing for baseline compliance while adopting PAYG for emerging and high-demand scenarios.
Next Steps
If you plan to enable PAYG billing, link your Azure subscription in the Microsoft Purview portal, review usage meters for each capability, and set up automated cost reporting. This ensures cost efficiency while unlocking the full power of Microsoft Purview’s advanced features.
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