License Smarter, Not Harder: Using Microsoft 365 Reports for Cost Control

Microsoft 365 offers robust productivity tools, but its subscription-based licensing model can incur unnecessary costs if not managed properly. By utilizing Microsoft 365 user reporting, organizations can obtain important insights into how licenses are being used, pinpoint inefficiencies, and implement strategies to reduce expenses.

Why Microsoft 365 User Reporting Matters Many organizations buy licenses based on anticipated needs or growth strategies, but as time goes on, unused or underused licenses can accumulate, resulting in considerable waste. Microsoft 365 user reporting tools offer in-depth insights into how licenses are allocated, usage trends, and inactive accounts. By examining this data, businesses can pinpoint areas for improvement and make informed choices to cut costs.

Generating Reports to Monitor License Usage

Microsoft 365 provides built-in reporting tools in the Admin Center that help administrators effectively track and manage licenses. Here's how customers can generate and make the most of these reports:

1. Accessing Usage Reports : To access usage reports, go to the Microsoft 365 Admin Center and click the "Reports" section. You'll find a range of user activity reports, such as email usage, OneDrive storage, and Teams activity. These reports give a clear overview of how users interact with the platform.

2. Understanding License Allocation: Utilize the "Licenses" report to see which users have been assigned specific licenses. This allows you to identify licenses that are assigned to inactive users or roles that don't need premium features. For instance, some employees may only require basic Microsoft 365 apps instead of advanced features like Power BI Pro or Microsoft Teams Phone.

3. Activity Analysis: The "User Activity" report monitors how individuals engage with Word, Excel, Teams, and Outlook applications. If users show low activity across these services, it may be necessary to reassess their assigned license level to better align with their actual usage.

4. Inactive Accounts Report : Create reports to identify inactive accounts, pinpointing users who haven't logged into the platform for a certain duration. You can achieve considerable cost savings by removing licenses from these accounts or fully deactivating them.

5. License Usage Trends : Utilize trend analysis to monitor shifts in license usage over time. If you notice a decline in using particular tools or services, rethink your licensing strategy accordingly.

Strategies to Cut Down Licensing

Costs After generating reports and gathering insights, organizations can adopt these strategies to save on costs:

• Right-Sizing Licenses: Allocate licenses according to actual user requirements. For example, consider switching users with minimal needs to Microsoft 365 Business Basic instead of opting for more expensive enterprise licenses.

• Deactivating Unused Licenses: Conduct regular audits to reclaim licenses from inactive accounts or employees who have left the organization.

• Leveraging Shared Licensing: For environments with shared devices or workspaces, utilize device-based licensing rather than per-user licenses to reduce expenses.

• Group-Based Licensing: Adopt group-based licensing to streamline the management of assignments and ensure that specific roles or departments have access to the necessary tools.

• Monitor Renewals: Before renewing licenses, assess usage reports to confirm the number and type of licenses that still meet your organization's requirements.

Microsoft 365 user reporting allows organizations to manage their licensing strategy effectively and cut unnecessary expenses. By consistently reviewing license usage and matching assignments to actual needs, companies can enhance the value of their investment while maintaining budget control. Begin using these tools now to discover savings and create a more streamlined Microsoft 365 environment.