Rental License is a paid and fully-functional license that expires at the end of the contract which is the last day of the month and normally 1 month from the contract start date. Such a license type is distributed only to service providers.
In contrast to Subscription license, Rental license is available only in the M365 license package. For Veeam Backup for Microsoft 365 with this type of license, Veeam ONE monitoring is available if Veeam ONE also has Rental license.
For more information on the compatibility of Veeam Backup for Microsoft 365 licenses with Veeam ONE licenses, see the Compatibility with Veeam Backup for Microsoft 365 Licenses section of the Veeam ONE Deployment Guide and this Veeam KB article.
When Veeam Backup for Microsoft 365 backs up a user account for the first time, such user account obtains the new user status until the first day of the following month. During this period, user accounts with the new user status do not consume your rental license.
For example, you have three user accounts A, B and C to be backed up and the first session of a backup job is scheduled on January 13, 2022. In such a scenario, after the backup session, all three user accounts (A, B and C) will be given the new user status until February 1, 2022. On February 1, 2022, the new user status for each of these accounts will be automatically reset. After the new user status is reset, upon the next backup job session all three user accounts (A, B and C) start consuming the rental license immediately.
You can avoid consuming a rental license by user accounts with the new user status that you no longer want to process. For example, you may not want to continue backing up the user account B from the example. To do this, remove this account from the backup job processing list before Veeam Backup for Microsoft 365 resets automatically the new user status for this account. Starting from the following month, user accounts A and C will start consuming the rental license, but the user account B will not.
A grace period of 2 months is granted after the expiration of license for purpose of renewal. During this period, the product functionality is not limited. After this period, processing of all user accounts in all organizations will be stopped; scheduled jobs will be terminated with failure. In both cases, a notification message will be shown to notify you that the license is either about to be expired or has expired.
The restore abilities will continue to function regardless of whether your license has expired or not.
Additional processing of no more than 20 user accounts or 20% of the license count (whichever is greater) is granted if you exceed the license limit by up to 20 user accounts or up to 20% of the license count.
If you exceed the license by more than 20 user accounts or more than 20% of the license count (whichever is greater), Veeam Backup for Microsoft 365 allows you to process these 20 (or 20%) extra user accounts according to the FIFO queue logic (that is, "first in — first out"); no additional accounts are allowed.
The grace period in this case is 2 months. After this period, processing of excessive user accounts (in FIFO queue) will be stopped; no more extra accounts will be queued for processing.
The restore abilities will continue to function regardless of the grace period state.
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