“License Compliance Status Report”
Autotask PSA Datto RMM Datto Backup Microsoft 365 SmileBack HubSpot IT Glue All reports
AI-GENERATED REPORT
You searched for:

License Compliance Status Report

Microsoft 365 license inventory, utilization analysis, and compliance audit across all managed tenants.

Built from: M365 Lighthouse
How this report was made
1
Autotask PSA
Multiple data sources combined
2
Proxuma Power BI
Pre-built MSP semantic model, 50+ measures
3
AI via MCP
Claude or ChatGPT writes DAX queries, executes them, formats output
4
This Report
KPIs, breakdowns, trends, recommendations
Ready in < 15 min

License Compliance Status Report

Microsoft 365 license inventory, utilization analysis, and compliance audit across all managed tenants.

The data covers the full scope of Autotask PSA records relevant to this analysis, broken down by the key dimensions your team needs for day-to-day decisions and client reporting.

Who should use this: Microsoft 365 administrators, security teams, and account managers

How often: Weekly for license management, monthly for adoption reviews, quarterly for optimization

Time saved
Checking license usage across multiple tenants in the M365 admin center takes hours. This report centralizes it.
License optimization
Unused licenses are wasted money. This report shows exactly where to right-size.
Adoption tracking
Proof of value for clients paying for M365 services, showing actual vs. potential usage.
Report categoryMicrosoft 365 & Licensing
Data sourceAutotask PSA · Datto RMM · Datto Backup · Microsoft 365 · SmileBack · HubSpot · IT Glue
RefreshReal-time via Power BI
Generation timeUnder 15 minutes
AI requiredClaude, ChatGPT or Copilot
AudienceMicrosoft 365 administrators, security teams
Where to find this in Proxuma
Power BI › Microsoft 365 › License Compliance Status Report
What you can measure in this report
Executive Summary
License Status Distribution
License Inventory by SKU
Compliance Alerts: Warning and Suspended Licenses
Underutilized Licenses
Compliance by Client
Analysis
What Should You Do With This Data?
Frequently Asked Questions
Total Licenses
Utilization Rate
Warning / Suspended
AI-Generated Power BI Report
License Compliance Status Report

Microsoft 365 license inventory, utilization analysis, and compliance audit across all managed tenants.

Demo Report: This report uses synthetic data to demonstrate AI-generated insights from Proxuma Power BI. The structure, DAX queries, and analysis reflect real MSP data patterns.
1.0 Executive Summary

High-level license counts, utilization rate, and compliance score.

Total Licenses
3,256,186
Across 137 unique SKUs
Utilization Rate
0.1%
Consumed / Active
Warning / Suspended
523
424 warning, 99 suspended
Compliance Score
100.0%
3,255,663 of 3,256,186 clean
View DAX Query - KPI Summary Query
EVALUATE
ROW(
    "TotalLicenses", [Total Licenses],
    "ActiveLicenses", [Active Licenses],
    "ConsumedLicenses", SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[consumed_units]),
    "AvailableLicenses", SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[available_units]),
    "WarningLicenses", SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[warning_units]),
    "SuspendedLicenses", SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[suspended_units]),
    "UniqueSKUs", DISTINCTCOUNT(BI_MicrosoftPartnerCenter_Subscribed_Skus[sku_part_number]),
    "TotalTenants", [Total Tenants]
)
2.0 License Status Distribution

Visual breakdown of all licenses by their current state.

License Allocation Breakdown
Consumed: 4,217
Available: 3,252,013
Warning: 424
Suspended: 99
Consumed: 4,217 (0.1%) Available: 3,252,013 (99.9%) Warning: 424 (0.0%) Suspended: 99 (0.0%)

The vast majority of licenses (99.9%) sit in "available" state, meaning they have been purchased or provisioned but never assigned. Many of these are free-tier or trial SKUs with high default seat counts (1,000,000 for Fabric Free, Power Automate Free, Teams Exploratory). Only 4,217 licenses are actually assigned to users.

View DAX Query - Utilization Percentage
EVALUATE
ROW(
    "UtilizationPct",
    DIVIDE(
        SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[consumed_units]),
        SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units]),
        0
    ) * 100
)
3.0 License Inventory by SKU

Top license SKUs ranked by total volume. Shows active, consumed, and available counts per SKU.

MetricValue
Products137
Consumed4,217
Active3,255,762
Customers38
View DAX Query - Top SKUs by Volume
EVALUATE ROW("UniqueProducts", DISTINCTCOUNT('BI_MicrosoftPartnerCenter_Subscribed_Skus'[sku_part_number]), "TotalConsumed", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units]), "TotalActive", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[active_units]), "Customers", DISTINCTCOUNT('BI_MicrosoftPartnerCenter_Subscribed_Skus'[customer_id]))
4.0 Compliance Alerts: Warning and Suspended Licenses

SKUs that have licenses in a warning or suspended state. These need immediate review.

License (SKU) Warning Suspended Total Risk %
Office 365 E1 398 0 398 100.0%
Microsoft Defender for Office 365 0 30 0 100.0%
Microsoft 365 Business Premium 0 25 0 100.0%
Clipchamp Premium 0 25 0 100.0%
Dynamics 365 Sales, Field Service and Customer Service Partner Sandbox 25 0 25 100.0%
Power BI Pro (for Departments) 0 6 0 100.0%
Windows 365 2 vCPU, 8 GB, 128 GB 0 3 0 100.0%
Microsoft Viva Goals Member 0 3 3 100.0%
Planner and Project Plan 3 0 1 11 9.1%
SharePoint (Plan 1) 0 1 0 100.0%
Microsoft 365 E3 0 1 1,176 0.1%
Visio Online (Plan 2) 0 1 0 100.0%
Microsoft Teams Exploratory 0 1 0 100.0%
Microsoft 365 A3 - Unattended License for faculty 0 1 0 100.0%
Microsoft 365 F1 0 1 0 100.0%
OneDrive for business (Plan 2) 1 0 1 100.0%

Office 365 E1 carries the largest warning count at 398 seats. Several SKUs show suspended licenses with zero total units, which typically means the subscription was cancelled but the record persists. These should be cleaned up in Partner Center.

5.0 Underutilized Licenses

SKUs where active licenses exceed consumed licenses. These represent unused capacity.

License (SKU) Active Consumed Unused Utilization
Microsoft Power Automate Free 1,000,000 0 1,000,000 0.0%
Microsoft Teams Exploratory 1,000,000 0 1,000,000 0.0%
Microsoft Fabric (Free) 1,000,000 99 999,901 0.0%
Rights Management Adhoc 50,000 0 50,000 0.0%
Dynamics 365 for Talent 10,000 0 10,000 0.0%
Dynamics 365 AI for Market Insights (Preview) 10,000 0 10,000 0.0%
Microsoft Intune Plan 1 10,000 0 10,000 0.0%
Dynamics 365 P1 Trial for Information Workers 10,000 0 10,000 0.0%
Dynamics 365 Customer Insights Self-Service 10,000 0 10,000 0.0%
Microsoft Power Apps Plan 2 Trial 10,000 0 10,000 0.0%

Most of the "waste" here comes from free-tier and trial SKUs that Microsoft provisions with very high default seat counts. The real concern is paid SKUs where active seats exceed consumed seats. Filter out free plans to get a clearer picture of actual spend waste.

6.0 Compliance by Client

Per-tenant breakdown showing license counts, utilization, and compliance status.

Client Licenses SKUs Utilization At Risk Status
Anderson & Associates 3,032,448 18 0.1% 405 Issues
Baker Industries 50,000 1 0.0% 0 Review
Carter Legal Group 30,564 12 1.3% 26 Issues
Davis Financial Services 20,403 14 1.7% 4 Issues
Edwards Healthcare 20,121 5 0.0% 0 Review
Franklin Manufacturing 20,115 12 0.4% 25 Issues
Garcia Construction 10,132 9 0.8% 0 Review
Henderson Consulting 10,103 11 1.5% 0 OK
Irving Technology 10,013 3 0.1% 0 Review
Jackson & Partners 10,011 2 0.1% 0 Review
7.0 Analysis

Across 10 managed clients, the portfolio holds 3,256,186 total licenses spread across 137 unique SKUs. Of those, 3,255,762 are in an active state and 4,217 are assigned to users, resulting in a 0.1% utilization rate.

That utilization number looks alarming at first glance, but context matters. A large portion of the inventory consists of free-tier and trial SKUs that Microsoft provisions with 1,000,000 or 10,000 default seats (Fabric Free, Power Automate Free, Teams Exploratory, various Dynamics 365 trials). These inflate the denominator without representing real spend. If you filter those out, the utilization on paid SKUs tells a different story.

424 licenses sit in a warning state and 99 are suspended. The largest warning block is Office 365 E1 with 398 seats. Warning typically means a subscription is past its billing date or a trial is approaching expiration. Suspended licenses have already lost functionality. Both categories need review before they escalate into client-facing outages.

The compliance score of 100.0% looks healthy on the surface because the numerator (clean licenses) is dominated by those massive free-tier allocations. A more meaningful compliance metric would focus on paid SKUs only. That said, the 16 SKUs with compliance flags in section 4.0 are worth reviewing individually.

8.0 What Should You Do With This Data?

Based on the data above, here are the steps that will have the most impact on license compliance.

1

Resolve the 398 Office 365 E1 warning licenses

This is the single largest compliance flag. Check whether the subscription billing is current. If this is a legacy SKU that should have been migrated to Microsoft 365 E3 or E5, start the migration and decommission the old plan.

2

Clean up suspended SKUs with zero total units

Several SKUs (Defender for Office 365, Clipchamp Premium, Power BI Pro for Departments) show suspended licenses against a total of zero. These are orphaned subscription records. Remove them from Partner Center to keep the inventory clean.

3

Review Anderson & Associates: 405 at-risk licenses across 18 SKUs

This client holds 93% of the total portfolio and has both warning and suspended licenses. Schedule a dedicated license review meeting to address outstanding billing issues and right-size unused SKUs.

4

Separate free-tier from paid-tier utilization tracking

The current 0.1% utilization rate is misleading because free SKUs dominate the count. Create a filtered view that shows paid-only utilization. That number is what matters for cost control.

5

Schedule this report monthly, filter for paid SKUs

Run this query on a monthly cadence. Add a filter to exclude SKUs where the name contains "Free", "Trial", or "Adhoc" to focus on the licenses that carry real cost. Track the trend over time.

9.0 Frequently Asked Questions
What does "warning" mean for a license?

A warning state means the license subscription has a billing issue or is about to expire. The license still works, but if the issue is not resolved during the grace period (typically 30 days), it moves to suspended.

What is the difference between "active" and "consumed" licenses?

Active licenses are seats you have purchased and enabled. Consumed licenses are seats that have actually been assigned to a user. The gap between the two is your unused inventory.

How is the compliance score calculated?

Compliance score = (Total Licenses - Warning Licenses - Suspended Licenses) / Total Licenses. A score of 100% means no licenses are in a warning or suspended state.

Why is the utilization rate so low?

Most of the "active" license count comes from free-tier and trial SKUs that Microsoft provisions with 1,000,000 or 10,000 default seats. These inflate the active count but do not represent real spend. Filter to paid SKUs for a meaningful utilization figure.

Can I run this report for a single client?

Yes. Add a filter on customer_id in the DAX queries to scope the report to one tenant. Proxuma Power BI also supports per-client filtering in the dashboard.

How often should I run this compliance check?

Monthly at minimum. If you manage more than 20 tenants, consider running it weekly so warning licenses are caught before they become suspended.

Generate this report from your own data

Connect Proxuma Power BI to your PSA, RMM, and M365 environment, use an MCP-compatible AI to ask questions, and generate custom reports - in minutes, not days.

See more reports Get started