License Analytics
This section highlights inefficient license assignments, identifying cost-saving opportunities through enhanced license management.
Before generating reports for license cost and potential cost savings, you need to set a license unit cost profile for the tenant. Click Set license unit cost profile to select a license unit cost profile. For detailed instructions on license unit cost profile, refer to License Unit Cost Profile Management.
Before generating reports for consumed and remaining budgets, you need to set a yearly license budget for tenant. Click Set yearly license budget. Select a start time, enter a yearly license budget amount, and click OK.
In the general section, you can find the following information:
- **Estimated cost savings** – Displays the estimated cost savings in specified time range: next month, next 3 months, next 6 months, and next 12 months.
The estimated cost savings are calculated based on reductions from potential cost saving opportunities and unassigned licenses.
Potential cost saving opportunities includes the following license assignments: inactive licensed users, blocked licensed users, licensed guest users, license downgrade suggested users, duplicate licensed users, low adoption Copilot users, and no adoption Copilot users.
- **Estimated cost savings rate** – Displays the estimated percentage rate of estimated cost savings.
- **Recommendations** – Displays the definition of potential cost saving opportunities and recommended workflows to unassign or downgrade license.
- **Consumed budget** – Displays the consumed budget.
- **Remaining budget** – Displays the remaining budget.
In the Cost savings section, you can find the following information:
- **Cost savings over specific period** – Displays the cost savings over a specified time range: current month, last month, last 3 months, last 6 months, and last 12 months. Cost savings are categorized into two streams: auto-saved cost (achieved through workflows) and manual-saved cost (directly recorded license adjustment).
- **Potential cost savings by user category** – Displays the underutilized license assignments across the following user categories:
By clicking the link, you will be redirected to the **User management** > **Users** page > **All users** tab, where a list of users is automatically filtered for quick review.
- **Inactive licensed users** – The number of users who are inactive but hold non-free licenses (cost >0).
- **Blocked licensed users** – The number of users who have been blocked from signing in but hold non-free licenses (cost >0).
- **Underutilized licensed users of other categories** – The number of other underutilized licensed users, including duplicate licensed users, guest licensed users, no adoption Copilot users, low adoption Copilot users, and license downgrade suggested users.
- **All underutilized licensed users** – The number of all underutilized licensed users.
- **License cost trend** – Displays the license cost in the last 6 months, the current month, and the next 3 months, segmented into real cost, potential cost savings, and cost under full optimization.
- **Potential cost savings by user** **details** – Displays the underutilized license assignments across organizational categories including: department, domain, and country or region.
By clicking the link, you will be redirected to the **User management** > **Users** page > **All users** tab, where a list of users is automatically filtered for quick review.
In the User adoption section, you can find the following information:
By clicking the link, you will be redirected to the User management > Users page > All users tab, where a list of users is automatically filtered for quick review.
- **Total users** – The total number of users within the tenant.
- **Blocked licensed users** – The number of users who have been blocked from signing in but hold non-free licenses (cost >0).
- **Inactive** **licensed** **users** – The number of users who are inactive but hold non-free licenses (cost >0). Clicking the Set workflow () button will redirect you to the **Workflows** > **Workflow list** page where you can create workflows for license management.
- **Duplicate licensed users** – The number of users with the duplicate license (cost >0). Clicking the Set workflow () button will redirect you to the **Workflows** > **Workflow list** page where you can create workflows for license management.
- **Licensed guest users** – The number of guest users but hold non-free licenses (cost >0).
- **Users suggested for license downgrade** – The number of users whose licenses (cost >0) should be downgraded.
- **Use activities** – The number of active and inactive users among Microsoft 365 services.
- **Copilot licenses –** The number of Copilot license assignments, categorized into active users, low-adoption users, no-adoption users, and total users.
In the License summary section, you can find the following information:
- **License** **allocation** – Displays the number of assigned licenses, the number of inactive users with an assigned license, and the number of unassigned licenses.
- **License management** – Displays how licenses are allocated across license types and user categories.
- **License cost (monthly)** – Displays the amount of current cost, potential cost savings, and projected cost after saving for each license type within the tenant.
