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How to Get a Comprehensive Overview of Microsoft 365 License Management

Unlock the potential of your Microsoft 365 environment by gaining insights into various aspects of license management. Understanding license usage, assignments, expirations, and changes is crucial for ensuring compliance and minimizing unnecessary costs. Dive into our comprehensive guide to Microsoft 365 license management and discover strategies to streamline your licensing approach for maximum efficiency and effectiveness.

Native Solution

Microsoft 365 Permission Required

High

Global Admin or License Admin

Monitor M365 License Usage

  • Using M365 Admin Center:
  • Check the 'Available Licenses' and 'Assigned Licenses' columns in the Licenses page of the M365 Admin Center to track license usage across the organization.
  • Using PowerShell:
  • Run the cmdlets shared below to generate M365 license usage report.
  • Windows PowerShell Windows PowerShell 
     Connect-MgGraph
  • Windows PowerShell Windows PowerShell 
     Get-MgSubscribedSku | Select-Object SkuId, SkuPartNumber, SkuName, ConsumedUnits -ExpandProperty PrepaidUnits | Select-Object SkuId, SkuPartNumber, SkuName, ConsumedUnits, PrepaidUnits.InputQuantity | Export-Csv -Path .\subscription_usage_report.csv

Export all M365 Licensed Users

  • Using M365 Admin Center:
  • Choose 'Licensed Users' filter from the 'Active users' page.
  • Click 'Export Users' button to download all the licensed users in your organization.
  • Using PowerShell:
  • Run the cmdlets below to export all M365 Licensed users in your organization.
  • Windows PowerShell Windows PowerShell 
     Connect-MgGraph -Scopes "User.Read.All"
  • Windows PowerShell Windows PowerShell 
     Get-MgUser -Filter 'assignedLicenses/$count ne 0' -ConsistencyLevel eventual -CountVariable licensedUserCount -All -Select DisplayName,AssignedLicenses | Format-Table -Property UserPrincipalName,DisplayName,AssignedLicenses | Export-Csv -Path .\licensed_users_report.csv

Check M365 License Expiry Details

  • Using 365 Admin Center:
  • Check the 'Subscription Status' field on the Your Products page to find the expiry date and lifecycle state of each subscription.
  • Using PowerShell:
  • Run the following cmdlets to find the license expiry and next lifecycle details for your M365 subscriptions.
  • Windows PowerShell Windows PowerShell 
     Connect-MsolService
  • Windows PowerShell Windows PowerShell 
     Get-MsolSubscription | Select-Object SkuPartNumber, IsTrial, Status, TotalLicenses, DateCreated, NextlifeCycleDate, State | Export-Csv -Path .\license_expiry_details.csv

Audit User License Assignments

  • Using Purview Compliance Portal:
  • Select 'Changed user license' from the 'Activities' field on the Audit page to track all license assignment activities, including both direct and group-based assignments.
  • Using Microsoft Entra Admin Center:
  • To identify the group license changes, navigate to the Microsoft Entra admin center and select the Audit logs under Monitoring & health.
  • Here you can apply these filters (Service-Core Directory, Activity-Set group license, Category-GroupManagement) to view who made changes to licenses within groups.
  • Using PowerShell:
  • Execute the cmdlets below to export all user license assignment events in your Microsoft 365 environment.
  • Windows PowerShell Windows PowerShell 
     Connect-ExchangeOnline
  • Windows PowerShell Windows PowerShell 
     Search-UnifiedAuditLog -StartDate MM/DD/YYYY -EndDate MM/DD/YYYY  -RecordType "AzureActiveDirectory" -Operations "Change user license" |Format-Table | Export-Csv -Path .\license_assignments_report.csv
AdminDroid Solution
More than 150 reports are under the free edition.

AdminDroid Permission Required

Delegated

Any user with report access delegated by the Super Admin.

M365 Subscriptions Overview

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  • Login to the AdminDroid Office 365 portal.
  • Go to License or Subscription sections under Dashboard»Azure AD to monitor your organization's Azure AD subscriptions at a glance.
M365 Subscriptions Overview

Experience a comprehensive dashboard that provides a clear, unified view of your licensed users, available and utilized license units, expired subscriptions, and the current subscription status. Stay informed with detailed service-specific licensing insights.

💡 Double-click on any stat to view detailed license reports in a table format.

Licensed User Activities Overview

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  • Monitor Microsoft 365 user activities effortlessly through the Usage and Adoption dashboard in AdminDroid. Being easily accessible from the left pane, this dashboard gives you clear insights into your licensed user activities.
Licensed User Activities Overview
Track licensed user activities to ensure every license assignment counts!

Microsoft 365 License Optimization Analysis

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  • Optimize your license management by tracking application usage, pinpointing inactive Microsoft 365 services, and analyzing data through the 'M365 Apps Usage Analytics' reports. Navigate to ReportBoards»Usage and Adoption to access these insights.
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Explore a full range of reporting options

Unlock Complete Control Over Your Microsoft 365 Licenses with AdminDroid!

AdminDroid Delivers 30+ M365 License Management Reports to elevate your license management strategy and cut down unnecessary expenses!

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Azure ADStreamline Microsoft 365 License Management for Optimal Performance

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How to automate alerts for upcoming license renewal? How to manage M365 subscriptions effectively? How to identify unused M365 applications? How to track Azure AD application license usage?

How to automate alerts for upcoming license renewal?

Staying informed about your Microsoft 365 subscription status is crucial to avoid service disruptions. Receiving alerts when a subscription is nearing expiration allows for timely renewals, ensuring continuous access to essential M365 services.

Microsoft sends billing notifications to global admins and billing admins by default. To add or update email addresses for billing notifications in Office 365, follow these steps:


  • Login to the Billing Notifications section in your M365 Admin Center.
  • Click on the name of the admin whose email address you want to update.
  • Update the email addresses in the 'Primary email' and 'Alternate email' fields.
  • Click 'Save Changes'.

AdminDroid goes beyond basic notifications!

AdminDroid not only provides timely alerts but also enhances your management capabilities with dynamic filter options and automated reporting. This allows you to stay proactive with detailed insights and streamline your subscription and license management effortlessly.

  • Go to the Subscription Usage report and click on the filter icon.
  • Set the Next Lifecycle Activity filter to This Month to view subscriptions with upcoming activities in the current month.
  • Then, set the Subscription Status filter to Enabled to focus on active subscriptions only.
  • Scheduling this report ensures better license management and helps prevent service disruptions.
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Our upcoming advanced notifications will revolutionize how you stay informed about subscriptions.

  • Go beyond basic reminders: Set up customizable triggers for subscription expiries and status changes.
  • Advanced filters: Fine-tune notifications with detailed filters, from setting reminder frequencies to identifying specific subscriptions.
  • Multiple channels: Choose to receive notifications via email or Teams, tailored to your needs.

How to manage M365 subscriptions effectively?

Feeling overwhelmed by managing your Microsoft 365 subscriptions? Unused licenses can lead to wasted resources and unnecessary costs. To maximize your investment and ensure efficient license usage, a structured approach is essential. Here's how to break it down:

1. License Assignments

Proper license management starts with a clear strategy for assigning licenses. This involves setting up group-based licensing, automating assignments, and adapting to changes in user roles or requirements as they occur.


Group-based licensing: Utilize Entra ID groups to automate license assignments by assigning licenses to groups rather than individual users. Streamlining this process helps organizations with easy onboarding and offboarding processes.

Auto-assignments: With auto-claim policies, you can define the services and applications available under each license. Furthermore, you gain the ability to regulate the specific SKUs associated with these licenses, offering greater flexibility and control over the entire licensing process.

Microsoft 365 self-service purchase: Microsoft 365 self-service purchase empowers users to independently acquire subscriptions and add-on services directly within their organization. This simplifies procurement, empowers users, and ensures compliance with policies, leading to higher productivity and efficiency.

2. License Optimization

To avoid unnecessary costs and ensure users have the right tools, regular review and optimization of M365 license assignments are necessary.


Review user activity: Identify users with minimal or no login activity in recent months. These users are prime candidates for license review. After tracking all user activities, remove or reassign unused licenses to optimize usage and reduce costs.

Audit license usage: Gain a detailed understanding of how your Microsoft 365 licenses are being utilized with Azure AD's robust auditing tools. Track M365 license usage and identify underused subscriptions to optimize your license investment.

Remove unused subscriptions: To view the unused licenses, you can use the unused subscription report to track the number of unused units so that you can allocate only the required units for your upcoming renewal.

3. Cost Management and Reporting

Controlling costs and maintaining transparency around licensing expenses is critical for budgeting and financial planning.


Monitoring subscription costs: Track your overall M365 spending and identify any potential cost spikes.

Budgeting and forecasting: Set budgets for M365 expenses and forecast future costs based on usage trends.

Reporting: Generate reports on license usage, costs, and identify opportunities for further optimization.

How to identify unused M365 applications?

Monitor and analyze user activities across Microsoft 365 applications like Word, Excel, and OneDrive using the Usage Reports in the admin center.

  • Login to the Microsoft 365 admin center.
  • Navigate to the 'Reports' section, then select 'Usage'.
  • Once you have navigated to the 'Microsoft 365 apps' section, review the activities for various O365 services to identify the most and least used applications.
  • By tracking these usage trends, you can identify unused licenses and optimize your M365 subscription.
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With Daily Apps Usage Summary report in AdminDroid, you can use the Daily Activity Summary chart to track application usage. This helps you make informed decisions to optimize M365 licenses by identifying underutilized apps.

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How to track Azure AD application license usage?

While Azure AD applications might not be a part of your core M365 suite, managing their licenses is equally important. Follow the steps provided below to understand how your Azure AD applications are being used, allowing you to optimize licensing costs and ensure efficient resource allocation.

  • Navigate to Usage & Insights section under Monitoring & Health in M365 Entra admin center.
  • Select the 'Date range' and sort the columns in descending order to identify Azure AD applications with most successful sign-ins, most failed sign-ins, and the highest success rates.
  • Use the 'Search' box to look up specific applications and find detailed usage information.

By analyzing this data, you can remove unused applications in Microsoft Entra ID and ensure your IT investments are aligned with actual user needs.

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Leverage the User's Sign-Ins Summary by Application report in AdminDroid to gain deep insights into application usage across your Microsoft 365 tenant. Unlike the native Microsoft 365 reports, AdminDroid provides comprehensive details, enabling you to identify the most frequently used applications through detailed sign-in metrics. This enhanced visibility helps optimize license management and improve resource allocation.

AdminDroid M365 License ReporterBoost license management through vigilant monitoring of license utilization

Track Office 365 license usage with AdminDroid's M365 license monitoring tool. Gain comprehensive insights and streamline license management with user-friendly reports and dashboards.

Make use of AdminDroid's powerful features and take control of your Microsoft 365 license usage:

Magnify your Microsoft 365 license management with AdminDroid's 'Subscription Usage' report. Acquire valuable insights into subscription expirations, types, and usage metrics, enabling streamlined license optimization.

An Overview

Track Licensed Users' Activities at Ease!

View detailed metrics for all licensed users in the User Activities Trend Dashboard. Easily filter and analyze the usage to see how licenses are being utilized across your organization.

Get Notified on the Licenses that can be Regained!

Schedule the Licenses can be Regained report and have it delivered to the desired recipient. This report identifies disabled users who still have licenses assigned, allowing you to free up those licenses for active users.

Visualize the Subscription Data Like Never Before!

Discover a detailed Subscription Dashboard to easily trace and manage all your free, trial, and purchased subscriptions, empowering you to optimize your investments and streamline your subscription management effortlessly.

View Organization's Purchased Subscriptions Expired Users in a Single File!

Streamline your reporting process by exporting the Purchased Subscription Expired Users report in multiple formats, including HTML, PDF, CSV, XLS, and XLSX. Additionally, optimize visibility with the RAW format for easier identification of expiring subscriptions.

Intuitive Report Board for M365 Apps Usage!

Utilize the customized report dashboard for Microsoft 365 applications usage and examine the usage trend across various Microsoft 365 services and optimize M365 licenses.

Get Immediately Alerted for External License Assignment!

Create an alert policy for the Licenses/Plans Assignments to External Users report to ensure instant notification whenever a license is assigned to an external user.

AdminDroid simplifies Microsoft 365 license assignment by offering enormous reports and features. With the diverse range of Microsoft 365 licenses available, it is crucial to procure and assign precise licenses to users, thus optimizing license usage.

Kickstart Your Journey with AdminDroid

Your Microsoft 365 Companion with Enormous Reporting Capabilities!

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Common Errors and Resolution Steps for getting overall subscription usage in Microsoft 365

The following are the possible errors and troubleshooting hints while dealing with license usage in Office 365.

Error: Conflicting service plans.

This error occurs when you allocate a license to a group, and the service plans within that license can’t overlap with the plans already assigned to a user through a different license directly.

Troubleshooting hint :Disable any one of the plans from the license assigned to the user.

Error: Set-MgUserLicense: User license is inherited from a group membership and it cannot be removed directly from the user.

This happens when you try to remove a license from a Microsoft 365 user that was inherited from a group.

Troubleshooting hint :Run the below PowerShell cmdlets to remove the user from the security group from which the license was inherited. 

// Connect to the MS Graph PowerShell to give permission to edit group membership details.
Connect-MgGraph -Scopes GroupMember.ReadWrite.All, Group.ReadWrite.All, Directory.ReadWrite.All
// Run the below cmdlet to remove a user from the group.
Remove-MgGroupMemberByRef -DirectoryObjectId "<User's Object Id>" -GroupId "<Group's Object Id>"

Error: UPDATE REQUIRED. Your Microsoft 365 subscription has a pending change. Please apply the change now to keep using your applications.

This happens when you switch to a different subscription without installing the Microsoft 365 apps that are compatible with that specific subscription.

Troubleshooting hint :Install the required version of Microsoft 365 apps that comes with your new subscription.

Error: License assignments failed.

This error occurs when you assign a license for users from the Azure portal whose usage location is not defined.

Troubleshooting hint :Set the usage location by selecting the desired user from the All Users section in the Microsoft Entra admin center (formerly Azure Active Directory).