“How Much Are We Spending on Unused or Underused Software Licenses?”
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How Much Are We Spending on Unused or Underused Software Licenses?

A breakdown of Microsoft 365 license allocation vs actual consumption, identifying waste by SKU and flagging opportunities to right-size

Built from: Microsoft Partner Center
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

How Much Are We Spending on Unused or Underused Software Licenses?

A breakdown of Microsoft 365 license allocation vs actual consumption, identifying waste by SKU and flagging opportunities to right-size

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 › How Much Are We Spending on Unused or...
What you can measure in this report
Key Performance Indicators
The Direct Answer: Where License Money Is Being Wasted
License Utilization by Product
Licenses in Warning State
Well-Utilized Licenses
Key Findings
What Should You Do With This Data?
Frequently Asked Questions
Paid SKUs Tracked
Licenses in Warning
Biggest Waste Area
Well-Utilized SKUs
License Utilization Report
Date: March 2026
Scope: All Subscribed SKUs
Sources: M365

How Much Are We Spending on Unused or Underused Software Licenses?

A breakdown of Microsoft 365 license allocation vs actual consumption, identifying waste by SKU and flagging opportunities to right-size

Demo Report: This report uses synthetic data from a sample tenant to demonstrate the analysis format. Connect your own Microsoft Partner Center data through Proxuma Power BI to generate results specific to your environment.
1.0 Key Performance Indicators
Paid SKUs Tracked
134
Across full tenant
Licenses in Warning
398
All from O365 E1
Biggest Waste Area
76.1%
Office 365 E1 (303 unused)
Well-Utilized SKUs
5
Above 98% utilization
View DAX Query — Subscribed SKU Summary
EVALUATE
SUMMARIZECOLUMNS(
    'BI_MicrosoftPartnerCenter_Subscribed_Skus'[name],
    'BI_MicrosoftPartnerCenter_Subscribed_Skus'[sku_part_number],
    "TotalUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[total_units]),
    "ActiveUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[active_units]),
    "ConsumedUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units]),
    "AvailableUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[available_units]),
    "WarningUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[warning_units]),
    "SuspendedUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[suspended_units])
)
ORDER BY [TotalUnits] DESC
2.0 The Direct Answer: Where License Money Is Being Wasted

Paid SKUs ranked by waste percentage. These are the products where you are paying for seats that nobody is using.

MetricValue
Consumed4,217
Active3,255,762
Available3,252,013
Utilization0.13%
Office 365 E1 is the standout problem. All 398 seats are in a WARNING state, meaning the subscription may be expiring or suspended. Only 95 of those 398 seats are actually consumed. That leaves 303 licenses generating cost with zero usage. This single SKU accounts for over 60% of total paid license waste in the tenant.
View DAX Query — Waste Percentage per SKU
EVALUATE ROW("UniqueProducts", DISTINCTCOUNT('BI_MicrosoftPartnerCenter_Subscribed_Skus'[sku_part_number]), "Consumed", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units]), "Active", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[active_units]), "Available", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[available_units]))
3.0 License Utilization by Product

Consumed seats as a percentage of total seats for the six largest paid SKUs

23.9% 95 / 398
Office 365 E1
65.0% 65 / 100
Power BI PPU
63.0% 63 / 100
Defender P2
64.0% 64 / 100
Entra ID P2
98.8% 1162 / 1176
M365 E3
98.5% 603 / 612
M365 F3
View DAX Query — Utilization per SKU
EVALUATE
ADDCOLUMNS(
    SUMMARIZECOLUMNS(
        'BI_MicrosoftPartnerCenter_Subscribed_Skus'[name],
        "Total", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[total_units]),
        "Consumed", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units])
    ),
    "UtilizationPct", DIVIDE([Consumed], [Total], 0)
)
ORDER BY [Total] DESC
4.0 Licenses in Warning State

SKUs where Microsoft has flagged units in a warning state, typically indicating an expiring subscription, payment issue, or pending suspension

License Total Units Warning Units Consumed Impact
Office 365 E1 398 398 95 Entire subscription at risk
All 398 Office 365 E1 seats are in WARNING. This does not mean they have been removed yet. It means the subscription is flagged by Microsoft for an issue: typically an upcoming expiration, a billing failure, or a manual cancellation that has not fully processed. The 95 users currently consuming these licenses will lose access if the warning is not resolved. Check the Partner Center subscription status and contact Microsoft support or your CSP to clarify the state of this subscription before the grace period ends.
View DAX Query — Warning State SKUs
EVALUATE
FILTER(
    SUMMARIZECOLUMNS(
        'BI_MicrosoftPartnerCenter_Subscribed_Skus'[name],
        'BI_MicrosoftPartnerCenter_Subscribed_Skus'[sku_part_number],
        "TotalUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[total_units]),
        "WarningUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[warning_units]),
        "ConsumedUnits", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units])
    ),
    [WarningUnits] > 0
)
ORDER BY [WarningUnits] DESC
5.0 Well-Utilized Licenses

SKUs at or above 95% utilization. These are sized correctly and need no adjustment.

License Total Consumed Available Utilization
Microsoft 365 Copilot 13 13 0 100.0%
Teams Premium 10 10 0 100.0%
Microsoft 365 E3 1,176 1,162 14 98.8%
Power BI Pro 150 147 3 98.0%
Microsoft 365 F3 612 603 9 98.5%
These five SKUs are running at or near capacity. M365 E3 at 98.8% with 1,162 of 1,176 seats consumed is the largest well-utilized product in the tenant. Copilot and Teams Premium are at 100%. If adoption of either increases, new seats will need to be purchased. Keep an eye on M365 F3 (603 of 612) as it approaches capacity.
View DAX Query — Well-Utilized SKUs
EVALUATE
VAR _SkuSummary =
    SUMMARIZECOLUMNS(
        'BI_MicrosoftPartnerCenter_Subscribed_Skus'[name],
        "Total", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[total_units]),
        "Consumed", SUM('BI_MicrosoftPartnerCenter_Subscribed_Skus'[consumed_units])
    )
RETURN
FILTER(
    ADDCOLUMNS(_SkuSummary,
        "Utilization", DIVIDE([Consumed], [Total], 0)),
    [Utilization] >= 0.95 && [Total] < 10000 && [Total] > 0
)
ORDER BY [Total] DESC
6.0 Key Findings
!

Office 365 E1 accounts for 303 of the total wasted licenses

76.1% of E1 seats are unused, and the entire subscription is in a WARNING state. This is the single largest cost leak in the tenant. If this subscription is expiring, the 95 active users need to be migrated to another SKU before access is lost. If it was intentionally reduced, the seat count should be right-sized to match actual consumption.

!

Security products (Defender P2 and Entra ID P2) are 36-37% underused

37 Defender P2 and 36 Entra ID P2 licenses are sitting unassigned. Unlike productivity tools where waste is purely financial, unassigned security licenses mean endpoints without threat protection and identities without conditional access. The waste here is not just cost. It is exposure.

!

Dynamics 365 Marketing has the second-highest waste rate at 45.5%

Only 6 of 11 Dynamics 365 Marketing licenses are consumed. Marketing automation tools are expensive per seat. If the remaining 5 seats have no planned assignment, they should be reduced at the next renewal to avoid paying for capacity that is not being used.

Core M365 E3 and F3 licenses are well-sized

M365 E3 at 98.8% and F3 at 98.5% utilization show that the main productivity suite is properly allocated. These are the largest SKUs by volume (1,176 and 612 seats) and they are running close to capacity without overage. No changes needed here.

Premium add-ons (Copilot, Teams Premium) are at 100% utilization

All 13 Copilot and all 10 Teams Premium licenses are assigned and consumed. These higher-cost add-ons are being used by every seat that was purchased. If demand grows, plan for additional seats at the next ordering cycle.

7.0 What Should You Do With This Data?

5 priorities based on the findings above

1

Resolve the Office 365 E1 warning state immediately

All 398 E1 seats are in WARNING. Check Partner Center for the subscription expiration date and billing status. If this subscription is being deprecated or cancelled, migrate the 95 active users to M365 E3 or another appropriate SKU before they lose access to Exchange Online, SharePoint, and Teams. If the subscription is still active and the warning is a billing issue, fix the payment method. Either way, right-size to ~100-120 seats (95 consumed + buffer) and eliminate the 303-seat overage.

2

Assign the 37 unassigned Defender P2 licenses or reduce the seat count

Every unassigned Defender P2 license represents an endpoint or server that is not receiving Microsoft's threat detection and response capabilities. Pull the list of devices in Intune or Entra ID and cross-reference against assigned Defender licenses. If 37 devices genuinely do not need Defender P2, reduce to 65 seats. If they do need it, assign the licenses now. 37 unprotected endpoints is a security gap, not just a cost issue.

3

Assign or reduce Entra ID P2 to match actual identity protection needs

36 Entra ID P2 licenses are unassigned. These licenses unlock conditional access policies, identity protection, and privileged identity management for the assigned users. Check which admin and privileged accounts are covered and whether the unassigned licenses were purchased for users who have since left or changed roles. Reduce to ~70 seats if no assignment plan exists.

4

Review Dynamics 365 Marketing and CE Plan seat counts before renewal

Dynamics 365 Marketing at 45.5% waste (5 of 11 unused) and CE Plan at 30.0% waste (15 of 50 unused) are both candidates for seat reduction. These are high-cost licenses. Talk to the CRM team to confirm how many users actually need access, and adjust the seat count at renewal. If adoption is expected to grow, set a 90-day checkpoint to verify before committing to the current count.

5

Set up a monthly license utilization review cadence

Run this report monthly. License waste accumulates quietly as employees leave, change roles, or stop using tools. A monthly check against the Partner Center data takes under 15 minutes through Proxuma Power BI and catches overspend before it compounds. Add it to the IT operations calendar alongside patching and backup reviews.

8.0 Frequently Asked Questions
Where does the license data come from?

The data comes from the BI_MicrosoftPartnerCenter_Subscribed_Skus table in Proxuma Power BI. This table is populated by the Microsoft Partner Center connector, which pulls the current subscription and license allocation data from your tenant. It includes total units, active units, consumed units, available units, warning units, and suspended units per SKU.

What does "consumed" vs "available" mean?

Consumed means a license has been assigned to a user or device. Available means the license is purchased but not assigned to anyone. Available licenses cost the same as consumed ones. You pay for the seat whether someone uses it or not. The goal is to keep consumed close to total, with a small buffer (5-10%) for new hires and role changes.

What does a "WARNING" state mean for a license?

A warning state in Partner Center means Microsoft has flagged the subscription for an issue. Common causes: the subscription is approaching its expiration date, there is a billing failure, or the subscription was cancelled and is in a grace period. Users assigned to warning-state licenses still have access during the grace period, but will lose it if the issue is not resolved.

Why are trial/free SKUs excluded from the waste analysis?

Many tenants have SKUs with 10,000+ units from Microsoft trial offers, developer packs, or included free tiers. Including them inflates the total and makes the waste numbers meaningless. This report filters to paid SKUs with fewer than 10,000 total units to focus on the licenses that actually affect your monthly bill.

How often should I run this report?

Monthly is the recommended cadence. License allocation changes as employees join, leave, or change roles. Running it monthly catches drift before it becomes a significant cost. Run it quarterly at minimum, and always run it before any Microsoft renewal or true-up to have accurate consumption numbers for negotiation.

Can I run this report against my own data?

Yes. Connect Proxuma Power BI to your Microsoft Partner Center, add an AI tool (Claude, ChatGPT, or Copilot) via MCP, and ask the same question. The AI writes the DAX queries, runs them against your real license data, and produces a report like this in under fifteen minutes.

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