Complete Guide to M365 Licence Optimisation
Microsoft 365 license waste is one of the biggest hidden costs in managed services. This guide covers how to find and eliminate it.
The Hidden Cost of License Waste
The average MSP client wastes 17% of their Microsoft 365 spend on licenses that aren't being used effectively. For a 100-user tenant, that can mean £400-800 per month in unnecessary costs.
Six Types of M365 License Waste
Unused Licenses
Licenses assigned to users who haven't signed in for 30+ days.
Duplicate Licenses
Users with overlapping SKUs — E5 + E3, or E3 + Business Premium.
Over-Provisioned Licenses
Users on E5 who only use Outlook and Teams could be on E1 or Business Basic.
Inactive Accounts
Leavers and disabled accounts still consuming paid licenses.
Redundant Add-Ons
Paid add-ons for features already included in the base plan.
Shared Mailbox Waste
Shared mailboxes don't need paid licenses unless specific features are required.
How to Run an M365 License Audit
You can audit M365 licenses manually through the Microsoft 365 Admin Centre, or use automated tools for faster results.
Manual Approach
- Export user list from Microsoft 365 Admin Centre
- Cross-reference with sign-in activity reports
- Identify users with no recent activity
- Check for duplicate license assignments
- Review usage reports per application
Automated Approach
Aerie OS performs a complete M365 license audit in 60 seconds using read-only Microsoft Graph API access. It automatically categorises every finding and calculates potential savings.
M365 Licence Optimisation Built In
Aerie OS includes automated M365 license auditing across all tiers.
Join the Waitlist