Assign Office 365 licenses to user accounts
For the cloud-only identity model, you can assign Office 365 licenses to user accounts as they are created, depending on how you create them.
For the hybrid identity model, when Active Directory Domain Services (AD DS) user accounts are synchronized for the first time, they are not automatically assigned an Office 365 license.
In either case, you must assign a license to user accounts so your users can access Office 365 services, such as email and Microsoft Teams.
You can assign licenses to user accounts either individually or automatically through group membership.
To assign Office 365 licenses to individual user accounts, you can use:
For automatic license assignment, see group-based licensing in Azure AD.
With the full set of user accounts that have been assigned licenses, you are now ready to: