2025 Example Licensing Scenario

Take this example scenario. A domain has 4,250 users (active and suspended). When the transition to the new licensing model occurs for this organization, they will have an inventory of 4,250 Fundamentals licenses, plus a buffer of additional licenses. Google will automatically assign these 4,250 Fundamentals licenses to all the domain's existing users (active and suspended).  The organization will also receive 4,250 Gmail Only licenses, plus a buffer, and 4,250 Gmail Only Au licenses, plus a buffer, which allows admins to archive Gmail Only users. 

Moving forward, the organization's admins are responsible for assigning and un-assigning these licenses manually or through automation. If there is a dedicated OU for suspended users, which is best practice, admins could change their status from Suspended to Archived, which will return their Fundamentals licenses to the inventory for assignment to other users.