M365Clarity · Licences

Microsoft 365 licence utilisation — are you using what you're paying for?

M365Clarity · 20 June 2026

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The licence visibility problem

Most organisations know roughly how many Microsoft 365 licences they're paying for. Very few know exactly how many are actively assigned to real users, how many are assigned but unused, and how many specific features within those licences have never been turned on.

Microsoft 365 licences aren't cheap — Business Basic at £4.90/user/month, Business Premium at £19.40/user/month, E3 at £28.10/user/month. At scale, unassigned or unused licences represent meaningful monthly expenditure with no return.

What M365Clarity checks

The Licence Utilisation tab pulls your tenant's subscription data from Microsoft Graph and shows you a breakdown of every SKU you hold — how many you've purchased, how many are assigned, and what percentage is utilised. It flags any SKU where assigned count is significantly below purchased count, and identifies users with licences assigned but no recent sign-in activity.

Typical finding: Tenants that have grown organically over time often have a mix of licence types — some users on older SKUs, some on newer ones — with varying feature sets. A licence audit often uncovers opportunities to consolidate and reduce cost.

The difference between assigned and active

A licence being assigned to a user doesn't mean it's being used. A user might have a Business Premium licence assigned but only use Teams and email — effectively getting Business Basic value from a Business Premium price. The Workload Adoption tab in M365Clarity shows you active usage by workload so you can cross-reference licence tier against actual usage patterns.

Right-sizing your licences

Licence right-sizing is the process of matching your licence mix to your actual usage. This might mean downgrading some users from E3 to Business Basic, removing licences from stale accounts, or identifying users who would benefit from an upgrade to access features they currently lack.

See this in action on your tenant

M365Clarity scans your Microsoft 365 configuration and shows you exactly what's in your plan, what's configured, and what's sitting idle — in plain English.

Start free scan →   View live demo

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