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We are developing a system where we want to provide a certain Group of users to collect data using a mobile app.

The mobile app Connects to a web api. The plan is to have the web api store the data in a SharePoint Online list, using the SharePoint Online Client SDK. From there, another Group of users will log in to SharePoint Online to process the data. The data collectors do not need to Access SharePoint, they only provide data.

From a licensing perspective, would it be ok to use a single SP user to enter the data from the API into SP? Or would this be considered as 'Multiplexing'?

In other Words, if a potential customer has 1000 People that will use the app to collect data, and 5 People that will process the data, will they need 1005 or 5 + 1 Licenses in order to use the system?

This will be a crucial cost factor, and it doesn't seem right to me that you would need a separate License just to supply data. Conceptually, it would be the same as the data collector calling a support representative (that has a License) and have him enter the data, which clearly would not require a License (as far as common sense goes..). On the other hand, it is not always easy to understand how Microsoft thinks about licensing.

I would be Grateful if somebody could shed some light on this either from experience or from knowledge.

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Generally this is considered multiplexing in an on-premises environment. That said, you need to talk to Microsoft Licensing as none here are qualified to give you a "proper" answer.

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