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How to Get Unlicensed Users Report in Microsoft 365

Are you finding it challenging to track unlicensed users in your Microsoft 365 environment? Unlicensed users can pose security risks and cause service disruptions. For instance, a key project might stall if a team member lacks access to essential apps like Teams or SharePoint. By identifying and managing these users, you can ensure seamless collaboration and avoid potential issues. This guide will cover effective strategies to identify and manage unlicensed users in Microsoft 365.

Native Solution

Microsoft 365 Permission Required

High
Least Privilege

Global Reader

Highest Privilege

Global Admin

Option 1 Using Microsoft 365 Admin Center

  • Sign in to the Microsoft 365 admin center.
  • Navigate to Users»Active users.
  • Click on the Filter option. In the filter pane, select Unlicensed users. This will display a list of users who do not have any licenses assigned.
Using Microsoft 365 Admin Center

Option 2 Using Windows PowerShell

  • Connect to Microsoft Graph PowerShell using the below cmdlet.
  • Windows PowerShell Windows PowerShell 
     Connect-Graph -Scopes User.Read.All, Organization.Read.All
  • Run the following cmdlet to find Unlicensed Users in Microsoft 365 Using PowerShell.
  • Windows PowerShell Windows PowerShell 
     Get-MgUser -Filter 'assignedLicenses/$count eq 0' -ConsistencyLevel eventual -CountVariable unlicensedUserCount -All
Using Windows PowerShell

Option 3 Using PowerShell Script

  • By running the ‘Get-MgUser’ cmdlet with the right filter, you can generate a list of all users without assigned licenses. Although this method is more efficient than manually checking each user, it does require some familiarity with PowerShell to get the correct results.
  • No need to worry! We've created a streamlined PowerShell script that automatically retrieves and exports a list of all unlicensed users for you.
  • Download and run the following script in the Administrator PowerShell.
GetUnlicensedUsers.ps1
Using PowerShell Script
AdminDroid Solution
This report and 150+ more reports are under free editionFREE

AdminDroid Permission Required

Delegated

Any user with report access delegated by the Super Admin.

StepsUsing AdminDroid

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  • Log in to the AdminDroid Office 365 reporter.
  • Navigate to the Unlicensed Users report under Reports»Azure AD»License Reports.
Using AdminDroid

View all the unlicensed users in Microsoft 365 with in-depth user details like User Principal Name, Sign in Status, Department, Job Title, etc.

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  • Utilize the customizable built-in graphs to quickly display unlicensed Microsoft 365 users based on their sign-in status in just a few clicks.
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Simplify the Management of Your Unlicensed Microsoft 365 Users!

Struggling to keep track of unlicensed users in Microsoft 365? AdminDroid simplifies user management, enabling you to improve security and streamline access control effectively.

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Azure ADTrack Unlicensed Users for Enhanced License Management in Microsoft 365

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What risks do unlicensed Microsoft 365 users pose during onboarding? What are the best practices to manage unlicensed users and in Microsoft 365? How to efficiently manage unused licenses in Microsoft 365? What happens to a user's data when their Microsoft 365 license is revoked?

What risks do unlicensed Microsoft 365 users pose during onboarding?

As organizations increasingly use Microsoft 365 for collaboration and productivity, it’s crucial to provide new employees with the necessary licenses for a smooth M365 user onboarding experience. An unlicensed Microsoft 365 account can significantly hinder a new employee's ability to integrate effectively, which leads to frustration and productivity losses.

Unlicensed users are restricted in their access to essential tools and services, which impacts their ability to collaborate and contribute within the organization. Below are the key limitations faced by unlicensed users in Microsoft 365.

  • No access to core collaboration features: This includes Exchange Online (email), OneDrive (cloud storage), SharePoint (team sites), Teams (chat, calls, meetings), Planner (task management), Yammer (internal social network), and Power Automate (workflow automation).
  • Limited functionality in Microsoft 365 apps: Unlicensed users may only have view-only access to some features within web versions of the apps (Word, Excel, PowerPoint, etc.).
  • No access to security and compliance features: This includes Data Loss Prevention (DLP), retention policies, Multi-Factor Authentication (MFA), and Conditional Access.

Pro-Tip: Utilize the Microsoft 365 License Usage Report to determine employees' license usage and manage M365 licenses for better optimization.

What can unlicensed users do in Microsoft 365, and how to track unlicensed user activities?

Microsoft 365 unlicensed users have restricted access to certain services. They can view shared OneDrive files through links but are unable to upload any files. Additionally, unlicensed users can access SharePoint sites and applications from their Microsoft 365 homepage, as long as these are added as 'Custom tiles' by admins.

To track unlicensed user activities, follow these steps:

  • First, obtain the list of unlicensed users using any of the available methods mentioned in the table above.
  • Then, go to the Audit page in the Microsoft Purview portal, and add these users to the search filters.
  • Set the desired date and time range and click Search.

The results will show all the activities performed by the unlicensed users, including attempts to access services or resources. However, it’s essential to understand that this process is not straightforward.

With AdminDroid, you can effortlessly track the unlicensed users' activities within your Microsoft 365 environment.

  • Using the easy filters capability, you can view the activities of users without a license.
  • Here, you can view the operations performed, the time of each operation, as well as the user's department and job title. By analyzing these details, you can determine whether to assign a Microsoft license to the user.
admindroid-unlicensed-user-activites

What are the best practices to manage unlicensed users and in Microsoft 365?

Managing unlicensed users in Microsoft 365 is essential for maintaining security, as it can lead to inefficiencies and potential security risks. Inactive or unlicensed accounts might still have access to sensitive resources, creating vulnerabilities. Properly handling these accounts is vital to maintaining both security and operational efficiency.

Evaluate User Needs in Microsoft 365

  • Evaluate Roles: Determine if unlicensed users need access to specific Microsoft 365 services based on their responsibilities.
  • Consult with Teams: Collaborate with department heads to confirm if licenses are necessary for certain roles.

Strategic Microsoft 365 License Assignment

  • Assign Licenses: It is important to allocate Microsoft 365 licenses to users who need access to resources to ensure uninterrupted productivity. After generating a list of unlicensed users, identify those requiring access and promptly assign licenses through the Admin Center or PowerShell.
  • Bulk Assign Licenses: If multiple users need the same license, consider bulk license assignment in M365.

Manage unlicensed OneDrive user accounts

  • To prevent data loss for users without OneDrive licenses, proactively manage their accounts, as unlicensed accounts have a 30-day grace period before their data is permanently deleted.
  • To avoid data loss, either reassign a license to the user if they still need OneDrive access or transfer their important files to another location before the grace period expires.

Important Note: Starting January 27, 2025, OneDrive accounts that have been unlicensed for longer than 93 days will become inaccessible. These unlicensed accounts will be automatically archived, admins will need to review and decide on their next steps.

How to efficiently manage unused licenses in Microsoft 365?

To maximize the return on investment for Microsoft 365, it's crucial to manage unused licenses effectively. By identifying and deactivating or reassigning unnecessary licenses, organizations can reduce costs and optimize resource allocation.

Maximizing ROI with Microsoft 365 License Management

  • Deactivate Accounts: Disable or remove unlicensed accounts that no longer require access to maintain security.
  • Identify and Reclaim Unused Licenses: Regularly review licenses to identify any that are inactive or unused M365 licenses, such as those assigned to deleted users, and reclaim them for reallocation or cost savings. Removing licenses from deleted M365 users ensures better resource management and helps maintain an efficient licensing strategy.

Establish Offboarding Processes

What happens to a user's data when their Microsoft 365 license is revoked?

When a Microsoft 365 license is removed, the data is retained for a limited time. The handling of this data depends on several factors, including the data type, applicable retention policies, and the specific subscription plan.

Immediate Access Loss in Microsoft 365

  • Once the license is removed, the user immediately loses access to their mailbox and other Microsoft 365 services. Admins, however, can still access and manage the data.

Data Retention Period in Microsoft 365

  • Exchange Mailbox: The data is preserved for 30 days. After this period, it is permanently deleted unless retention policies or labels are in place.
  • OneDrive for Business: Files are retained but not automatically deleted unless the user is fully removed from the Microsoft 365 environment.
  • Enterprise Subscriptions: For certain subscriptions like E3 or E5, inactive mailboxes can be used to retain user data, and the retention period can be adjusted.

Reassigning Microsoft 365 License

  • If the user still requires access, reassigning the license within the 30-day window allows them to regain access to their data and avoid permanent deletion.

Tip: Hiding unlicensed users from Teams can reduce clutter and improve user experience by ensuring only active, licensed users appear in the directory.

With AdminDroid’s dedicated report for license revoking activities, find all the removed Microsoft 365 license details along with the revoked plan details.

  • This report shows which licenses have been removed, so you can reassign them to active users and make the best use of your Microsoft 365 licenses.
admindroid-license-revoking-activites

AdminDroid M365 License ReporterExporting the list of unlicensed Microsoft 365 users is now a breeze!

Being the ultimate resource for IT admins, AdminDroid Microsoft 365 license management and reporting tool makes it easy to identify unlicensed users in your Microsoft 365 environment. No need for complex PowerShell commands; gain clear insights into license status and optimize your license usage with just a few clicks.

A Quick Summary

Find Microsoft 365 Users with Free Subscriptions

The Users with Free Subscriptions report shows users with free subscriptions, like Microsoft Flow (Free) or Business Apps (Free), helping identify those utilizing free licenses.

Dedicated Reports for Licensed Users

Track all M365 licensed users, including their subscriptions, sign-in status, and usage locations, to help admins effectively manage and revoke unnecessary licenses.

Customize the Alerts on Users’ License Changes

Use AdminDroid's alerting feature to receive categorized alerts (Severe, High, Medium, Low, Info) in your inbox. Set thresholds to get notified when a license is removed from users beyond a specified limit.

Retrieve License Expiry Reports in Various Formats

Export M365 license expiration reports in various formats like PDF, CSV, etc., to integrate with workflows, allowing admins to easily share data for auditing or user provisioning.

Avoid Data Loss from Suspended Subscriptions

Restore suspended Microsoft 365 subscriptions within 90 days to prevent permanent data loss and ensure continued access to essential services.

Regain Licenses of Disabled Users

Find disabled licensed users in Microsoft 365 and reassign those licenses to active users to prevent unnecessary license usage.

Overall, AdminDroid’s detailed reports provide comprehensive visibility into your Microsoft 365 environment, addressing unlicensed users, unused subscriptions, and license compliance. This empowers administrators to take proactive measures by efficiently identifying and managing unlicensed users. This approach enhances security and reduces the risk of compliance issues across the organization.

Kickstart Your Journey with AdminDroid

Your Microsoft 365 Companion with Enormous Reporting Capabilities!

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Common Errors and Resolution Steps While Exporting Unlicensed Users in Microsoft 365

The following are possible errors and troubleshooting hints while checking Microsoft 365 unlicensed users.

Error: Please try again later. If this problem persists, you can try to create a new presentation from OneDrive.
unable-to-create-document-error

This error occurs when an unlicensed user tries to create a Powerpoint document or any other file using the M365 apps.

Troubleshooting hint :Assign a license to the user for accessing Microsoft 365 applications.

Error: Error with the inputs provided. Search duration is too long. Please select a date range less than 6 months.
purview-search-more-than-six-mon-error

This error will occur in the audit log search of Purview Compliance if the selected date and time range exceed the limit.

Troubleshooting hint :In Microsoft Purview Audit (Standard), logs can only be retained for a maximum of 180 days. So, you need to give a time range within this period.

Error: ./GetUnlicensedUsers.ps1 cannot be loaded because running scripts is disabled on this system.

This error occurs when attempting to run the script because the execution policy is set to strict by default, preventing scripts from executing.

Troubleshooting hint :To resolve this error, you can set the execution policy to run the script. 

Set-ExecutionPolicy -Scope Process -ExecutionPolicy Bypass

Error: Get-MgUser: Calling principal does not have required MSGraph permissions Scopes User.Read.All.

This error occurs when the MS Graph module does not have permission to read the audit log to display the users without license assignment.

Troubleshooting hint :Connect to the MS Graph PowerShell using the below cmdlet and permit to read Microsoft 365 unlicensed users. 

Connect-Graph -Scopes User.Read.All, Organization.Read.All