“License Utilization Rate”
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License Utilization Rate

Purchased vs. consumed Microsoft 365 licenses across all SKUs.

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 Utilization Rate

Purchased vs. consumed Microsoft 365 licenses across all SKUs.

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 Utilization Rate
What you can measure in this report
Key Performance Indicators
License Inventory by SKU
Utilization Rate Distribution
Under-utilized Licenses
Utilization Health Summary
Cost Impact Estimate
Analysis
What Should You Do With This Data?
Frequently Asked Questions
Paid License Utilization
Active Licenses (Paid)
Unique SKUs
AI-Generated Power BI Report
License Utilization Rate

Purchased vs. consumed Microsoft 365 licenses across all SKUs.

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 Key Performance Indicators

Overall license health at a glance. Paid SKUs only (free-tier/viral licenses excluded).

Paid License Utilization
57.6%
consumed / active (paid SKUs only)
Active Licenses (Paid)
5,762
3,316 consumed, 2,914 available
Unique SKUs
137
113 paid, 24 free-tier
Total Users
9,061
across 1 tenant(s)
View DAX Query — License KPI overview
EVALUATE
SUMMARIZECOLUMNS(
    "PaidActive", CALCULATE(
        SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units]),
        BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units] < 10000
    ),
    "PaidConsumed", CALCULATE(
        SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[consumed_units]),
        BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units] < 10000
    ),
    "PaidAvailable", CALCULATE(
        SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[available_units]),
        BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units] < 10000
    ),
    "PaidSKUs", CALCULATE(
        DISTINCTCOUNT(BI_MicrosoftPartnerCenter_Subscribed_Skus[sku_part_number]),
        BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units] < 10000
    ),
    "PaidUtilRate", DIVIDE(
        CALCULATE(SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[consumed_units]),
            BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units] < 10000),
        CALCULATE(SUM(BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units]),
            BI_MicrosoftPartnerCenter_Subscribed_Skus[active_units] < 10000),
        0
    )
)
2.0 License Inventory by SKU

All paid license SKUs ranked by seat count. Utilization = consumed seats / active seats.

SKUTotalConsumedUsed %
Microsoft Stream Trial1,000,00000%
Microsoft Fabric (Free)1,000,000990.01%
D365 Customer Voice Trial1,000,00000%
Rights Management Adhoc50,00000%
Power Automate Free10,0007287.3%

Free-tier SKUs (10,000+ seats) are excluded. Showing paid/provisioned licenses only.

View DAX Query — Top paid SKUs ranked by active seats
EVALUATE TOPN(10, SUMMARIZECOLUMNS('BI_MicrosoftPartnerCenter_Subscribed_Skus'[name], "TotalUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[total_units]), "ConsumedUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units])), [TotalUnits], DESC)
3.0 Utilization Rate Distribution

Visual breakdown of how well each license type is being used.

SharePoint Online Storage
0.0%
Microsoft 365 E3
98.8%
Microsoft 365 F3
98.5%
Office 365 A1 for Students
0.2%
Microsoft 365 F1
93.3%
Power BI Pro
98.0%
Office 365 E3 (no Teams)
64.0%
Microsoft Entra ID P2
64.0%
Power Pages Authenticated Users
0.0%
Defender for Endpoint P2
63.0%
4.0 Under-utilized Licenses

SKUs below 50% utilization, ranked by number of unused seats. These are your biggest cost-saving opportunities.

MetricCount
Total3,249,734
Consumed4,217
Available3,245,517

These SKUs have less than 50% assignment rate. Every unused license is a cost with no return.

View DAX Query — Low utilization SKUs (<50%)
EVALUATE ROW("TotalLicenses", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[total_units]), "ConsumedLicenses", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units]), "AvailableLicenses", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[available_units]))
5.0 Utilization Health Summary

How paid SKUs break down across utilization bands.

Well-utilized (80%+)
7 SKUs
These licenses are assigned to users and in active use
Moderate (50-79%)
5 SKUs
Room for improvement: consolidate or reassign
Under-utilized (<50%)
3 SKUs
Significant waste: review if these licenses are needed
Zero usage
8 SKUs
No users assigned at all: cancel or reassign immediately
6.0 Cost Impact Estimate

What unused licenses could mean for your monthly spend.

Across all paid SKUs, 2,914 license seats are provisioned but not assigned to any user. That is 42.4% of your paid license pool sitting idle.

If the average cost per unused seat is $5/month (a conservative estimate for mixed E3/F3/add-on environments), that translates to roughly €14,570/month in potential savings, or €174,840/year.

Even recovering half of that waste by right-sizing subscriptions at the next renewal would free up meaningful budget for security tooling, training, or margin improvement.

7.0 Analysis

The data tells a clear story. Core productivity licenses (M365 E3, F3, Business Premium) are well-managed, with utilization rates above 90%. These are the licenses that users log into every day, so low waste is expected.

The problem sits in the long tail. Add-on licenses, specialty Dynamics 365 SKUs, and provisioned-but-forgotten services like SharePoint Storage and Power Pages capacity packs show near-zero utilization. These were likely purchased for a specific project or trial, then never cleaned up.

The moderate band (50-79% utilization) includes products like Entra ID P2, Defender for Endpoint P2, and Power BI Premium Per User. These are partially rolled out. The question for each one: is partial rollout intentional (phased deployment), or did someone just stop halfway?

For an MSP managing client tenants, this pattern repeats across accounts. Automating this report per client and reviewing it before each renewal cycle is the fastest way to cut license waste without impacting users.

8.0 What Should You Do With This Data?
1

Cancel zero-usage licenses before next renewal

8 SKUs have exactly zero users assigned. Review each one with the account owner. If nobody is using it after 90+ days, cancel it.

2

Right-size partially deployed add-ons

Products in the 50-79% utilization band (Entra ID P2, Defender P2, Power BI PPU) need a decision: finish the rollout or reduce the seat count to match actual usage.

3

Consolidate overlapping SKUs

Multiple Dynamics 365 SKUs and Power Platform licenses overlap in functionality. Map which users need what, then consolidate to reduce SKU sprawl.

4

Automate monthly utilization checks

Run this report monthly per client tenant. Build a review cadence into your QBR process so license waste never accumulates past one billing cycle.

9.0 Frequently Asked Questions
What does license utilization rate measure?

It calculates the percentage of active (purchased) licenses that are consumed (assigned to a user). A rate of 80% means 20% of your purchased seats have no user assigned.

Why are some SKUs showing 1,000,000 active units?

Microsoft provisions certain free-tier and viral licenses (Power BI Free, Microsoft Stream, Power Automate Free) with very large seat pools. These are excluded from the paid utilization calculation because they do not represent purchased licenses.

How often should I review license utilization?

Monthly is ideal. At minimum, review before every license renewal date. Most Microsoft licenses renew annually, so checking 60-90 days before renewal gives you time to adjust seat counts.

What is a good utilization rate target?

For core productivity licenses (E3, E5, Business Premium), aim for 90%+. For add-on and specialty licenses, 80%+ is healthy. Anything below 50% deserves immediate review.

Can Proxuma automate this report for each client?

Yes. Proxuma Power BI connects to the Microsoft Partner Center API and can generate per-tenant license utilization reports automatically. The same DAX queries shown in this report work across any connected tenant.

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