While playing around with Office 365 I bumped into an issue, which you might also could face. I created an administrator role in Azure Active Directory and activated my Office 365 E3 License (thank you Microsoft for this free license!). After setting up my tenant properly I assumed I could log into my Office 365 mailbox. But the I faced this error here…
…hmm and when I tried to add the user in the Exchange admin console to add a mailbox I saw this greyed out “pencil” sign…
I did “bing” around, but found not any solution to this problem. After a short while, inspecting my admin user in the Office 365 Admin Center…
I figured out that I did not assign a license to my user….
After assigning the license I could create a mailbox for my user and also login into the mailbox.
Well, the error message is correct, but you will find misleading information when you try to find the answer online. Sometimes the solution is not that complicated 
. I hope this saves you some time…
