GCC High License: Costs, Examples, and FAQs

GCC High is a cloud service provided by Microsoft that is designed for US government customers and contractors who need to handle sensitive information in a secure and compliant manner

The cost of a GCC High License can vary depending on several factors, such as the specific licensing agreement, the number of users, and any additional features or services included. As such, a GCC High License has no fixed average cost. 

To give you an idea of the range of costs, a single GCC High user license for Microsoft 365 Business Standard may start at around $12 per user per month. In contrast, a more comprehensive Enterprise Agreement (EA) with advanced security and compliance features could cost several thousand dollars per year for a large organization. 

However, it’s important to note that these are just examples, and actual costs can vary widely based on individual circumstances.

Factors determining the cost

Here are some factors that can affect the cost of a GCC High License. Note that the specific examples and costs given are not based on any actual data or current pricing from Microsoft but are intended to be illustrative examples of how different factors can affect the cost of a GCC High License

1. Licensing Agreement

The specific licensing agreement that an organization chooses can affect the cost of the license. Longer agreements can sometimes result in lower per-month costs, while shorter agreements may be more expensive. It’s important to carefully consider your organization’s needs when selecting a licensing agreement.

• Example: Microsoft 365 Business Premium license for a 1-year agreement – $25 per user per month compared to a 3-year agreement – $20 per user per month

2. Number of Users

The number of users who require a license can affect the overall cost, as many licenses are priced per user. Organizations with larger user bases may be able to negotiate lower per-user costs, while smaller organizations may have to pay more per user.

• Example: Microsoft 365 E3 license for 1-9 users – $32 per user per month compared to 10-99 users – $30 per user per month

3. Additional Features or Services

Advanced features and services, such as advanced security and compliance tools, can increase the cost of a GCC High License. It’s important to carefully evaluate the needs of your organization to determine which features and services are necessary, and to balance those needs with the associated costs.

• Example: Microsoft 365 E5 license with advanced compliance and security features – $57 per user per month compared to Microsoft 365 E3 license without the advanced features – $32 per user per month

4. Contract Length

Longer contract lengths can sometimes result in lower per-month costs, while shorter contracts may be more expensive. Organizations should carefully consider their long-term needs when selecting a contract length, and weigh the benefits of cost savings against the potential risks of being locked into a contract.

• Example: Microsoft 365 E3 license for a 1-year agreement – $32 per user per month compared to a 3-year agreement – $30 per user per month

5. Type of Subscription

Different types of subscriptions, such as monthly or annual, can have different costs. Annual subscriptions can sometimes offer cost savings over monthly subscriptions, but they require a larger upfront investment. Organizations should carefully evaluate their budget and needs when selecting a subscription type.

• Example: Microsoft 365 E3 monthly subscription – $40 per user per month compared to an annual subscription – $32 per user per month

Remember that the costs given may not reflect the actual pricing for any specific product or license, and should not be relied upon as accurate or current information. It’s always best to check with a Microsoft sales representative or partner for current and accurate pricing information.

Examples of GCC High License Cost

Example #1: Medium-Sized Organization with 50 Users

Suppose a medium-sized organization with 50 users is interested in purchasing Microsoft 365 E5 licenses with GCC High. Here’s how each factor could affect the cost:

I. Licensing Agreement: They choose a 3-year agreement, which results in a cost of $45 per user per month.

II. Number of Users: They require 50 licenses, which brings the total cost to $2,250 per month.

III. Additional Features or Services: They require the advanced compliance and security features included in Microsoft 365 E5, which brings the total cost to $65 per user per month, or $3,250 per month for all 50 users.

IV. Contract Length: They choose a 3-year agreement, which does not affect the cost in this case as it was already factored in under Licensing Agreement.

V. Type of Subscription: They choose an annual subscription, which results in a cost of $58 per user per month.

Based on these factors, the total cost for a GCC High License in this example would be $34,500 per year for all 50 users. However, it’s important to note that these are just illustrative numbers and that the actual cost can vary widely based on individual circumstances.

Total cost: $34,500 per year for all 50 users

Example #2: Small Organization with 10 Users

Suppose a small organization with 10 users is interested in purchasing Microsoft 365 E3 licenses with GCC High. Here’s how each factor could affect the cost:

I. Licensing Agreement: They choose a 1-year agreement, which results in a cost of $25 per user per month.

II. Number of Users: They require 10 licenses, which brings the total cost to $250 per month.

III. Additional Features or Services: They don’t require the advanced compliance and security features included in Microsoft 365 E5, so they opt for the Microsoft 365 E3 license at a cost of $32 per user per month, or $320 per month for all 10 users.

IV. Contract Length: They choose a 1-year agreement, which does not affect the cost in this case as it was already factored in under Licensing Agreement.

V. Type of Subscription: They choose a monthly subscription, which results in a cost of $32 per user per month.

Based on these factors, the total cost for a GCC High License in this example would be $320 per month for all 10 users, or $3,840 per year. Again, it’s important to note that these are just illustrative numbers and that the actual cost can vary widely based on individual circumstances.

Total cost: $3,840 per year for all 10 users

Example #3: Government Contractor Working with the DoD

Suppose a government contractor is working with the DoD and requires 100 licenses for Microsoft 365 E5 with GCC High to handle controlled unclassified information (CUI). Here’s how each factor could affect the cost:

I. Licensing Agreement: They choose a 3-year agreement, which results in a cost of $45 per user per month.

II. Number of Users: They require 100 licenses, which brings the total cost to $4,500 per month.

III. Additional Features or Services: They require the advanced compliance and security features included in Microsoft 365 E5, which brings the total cost to $65 per user per month, or $6,500 per month for all 100 users.

IV. Contract Length: They choose a 3-year agreement, which does not affect the cost in this case as it was already factored in under Licensing Agreement.

V. Type of Subscription: They choose an annual subscription, which results in a cost of $58 per user per month.

Based on these factors, the total cost for a GCC High License in this example would be $78,000 per year for all 100 users. However, it’s important to note that these are just illustrative numbers and that the actual cost can vary widely based on individual circumstances. 

Total cost: $78,000 per year for all 100 users

Again, it’s important to note that these costs are just illustrative and based on hypothetical scenarios, and actual costs can vary based on individual circumstances.

FAQs

Who exactly can sell GCC High?

Only Microsoft partners authorized for US Government Cloud can sell and deploy GCC High to customers. The licenses are only available to organizations that meet certain requirements and are authorized to handle controlled unclassified information (CUI) by the US government.

What’s the difference between Microsoft GCC and GCC High?

Microsoft GCC is a cloud service designed for US government customers at the federal, state, and local levels. GCC High is another cloud service designed specifically for US government customers and contractors who handle sensitive information and need to comply with certain regulations, like the Department of Defense’s DFARS and FedRAMP Moderate and High baselines.

What are the advantages of GCC High?

GCC High provides a secure and compliant cloud environment for organizations that handle controlled unclassified information (CUI), with features such as advanced compliance and security tools, strict access controls, and the ability to store data in dedicated US-based datacenters.

What does the GCC High lack?

GCC High may have certain limitations compared to other Microsoft cloud offerings, such as fewer available third-party integrations, limited access to certain APIs, and a smaller ecosystem of partners and developers. 

Additionally, the strict security and compliance requirements of GCC High may result in some additional costs and operational complexity for organizations that require this level of security and compliance.