How does Windows licensing work for a business?
New PCs ship with Windows 11 Home or Windows 11 Pro, and only Pro has the features an office uses to manage its computers. This guide covers the editions, how licenses are sold, and the rules for servers and virtual machines.
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Windows 11 Home versus Pro
Home is built for a personal PC. Pro adds the features that let a company manage its computers: joining the PC to the company's accounts, pushing settings to it, encrypting it with BitLocker and reaching it by Remote Desktop. Office PCs should run Pro.
| Feature | Windows 11 Home | Windows 11 Pro |
|---|---|---|
| Join the company's Microsoft 365 accounts (Entra ID) or a domain | No | Yes |
| Central settings (Group Policy) | No | Yes |
| BitLocker drive encryption | No | Yes |
| Remote Desktop host (connect in to this PC) | No | Yes |
How Windows is sold
- Preinstalled (OEM): the copy of Windows that comes on a new PC. The license belongs to that PC and stays with it.
- Retail: Windows 11 Home or Pro bought on its own. It can be moved to another PC once it is removed from the first.
Upgrading Home to Pro
A Home PC can be upgraded in place. The upgrade is bought through the Microsoft Store on that PC, or a Windows 11 Pro product key is entered under Settings, System, Activation. It is one purchase per PC. Microsoft 365 Business Premium does not turn a Home laptop into Pro, so a Home machine still needs a Pro license first. Compare plans in our Microsoft 365 licensing guide.
Windows Server basics
Windows Server is licensed differently from a desktop PC.
- Cores: the license is sized by the number of processor cores in the server.
- Virtual machines: the Standard edition covers two Windows Server virtual machines on a licensed host. Datacenter covers an unlimited number.
- Client access licenses: every user or device that uses the server needs a client access license (CAL) as well.
Common mistakes we see
- Buying Home laptops for an office that needs Pro: each one needs a paid upgrade before it can join the company's accounts or be encrypted with BitLocker.
- Forgetting CALs: the server license covers the server. The people using it need client access licenses too.
- Running more than two virtual machines on Standard: count the virtual machines before choosing between Standard and Datacenter.
How KawaConnect handles licensing
We supply business laptops and desktops with Windows Pro and enroll them in Intune. KawaConnect is an official Microsoft reseller, and the Microsoft 365 licenses that go with those PCs come through us on one invoice with IT support.
Ordering is covered on our Microsoft reseller page, and PC setup is part of managed IT. For the wider product family, read our Microsoft guide.
Related services
Microsoft reseller
Microsoft 365 licenses from the company that supports your PCs.
Microsoft 365
Entra ID and Intune set up so each Windows Pro device is managed.
Managed IT
New PCs supplied, enrolled, patched and supported.
Learn more
- Compare Windows 11 Home and Pro for businessMicrosoft's feature-by-feature table of Home, Pro and Pro for Workstations, useful before buying PCs.
- Upgrade Windows Home to Windows ProThe steps for upgrading one PC through the Microsoft Store or with a product key.
- Windows Server licensingMicrosoft's page on core licenses, client access licenses and the two editions, for anyone sizing a server purchase.
- Windows 11 editions on WikipediaA list of every Windows 11 edition and who each is for.
Buying PCs or a server soon?
Tell us how many people and machines you have. We will tell you which Windows edition and licenses the order needs.
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