“Microsoft 365 Service Adoption Report”
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Microsoft 365 Service Adoption Report

Adoption rates for Exchange, Teams, SharePoint, OneDrive and other M365 workloads across 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

Microsoft 365 Service Adoption Report

Adoption rates for Exchange, Teams, SharePoint, OneDrive and other M365 workloads across 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 › Microsoft 365 Service Adoption Report
What you can measure in this report
Summary Metrics
Adoption by Service
Adoption Gaps by Tenant
Tenant-Level Breakdown
6-Month Trend
Tenants Without Coverage
Key Findings
Strategic Recommendations
Frequently Asked Questions
Avg Services Used
Exchange Adoption
Power BI Adoption
AI-Generated Power BI Report
Microsoft 365 Service Adoption Report

Adoption rates for Exchange, Teams, SharePoint, OneDrive and other M365 workloads across 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 Summary Metrics
Avg Services Used
4.2
Of 8 available
Exchange Adoption
98.6%
Highest service
Power BI Adoption
23.4%
Lowest service
Full Suite Users
31.2%
Using 6+ services
View DAX Query - Summary Metrics
EVALUATE
ROW(
    "AvgServicesUsed", AVERAGE(BI_Lighthouse_Adoption[services_active]),
    "ExchangeRate", DIVIDE(CALCULATE(COUNTROWS(BI_Lighthouse_Adoption), BI_Lighthouse_Adoption[exchange_active] = TRUE()), COUNTROWS(BI_Lighthouse_Adoption)),
    "PowerBIRate", DIVIDE(CALCULATE(COUNTROWS(BI_Lighthouse_Adoption), BI_Lighthouse_Adoption[powerbi_active] = TRUE()), COUNTROWS(BI_Lighthouse_Adoption))
)
What are these DAX queries? DAX (Data Analysis Expressions) is the formula language used by Power BI to query data. Each “View DAX Query” section shows the exact query the AI wrote and executed. You can copy any query and run it in Power BI Desktop against your own dataset.
2.0 Adoption by Service

Percentage of tenants actively using each M365 service.

Exchange Online
98.6%
Microsoft Teams
94.1%
OneDrive
87.3%
SharePoint
72.8%
Intune
54.2%
Defender
48.7%
Power Automate
31.5%
Power BI
23.4%
ServiceMAU
DiscoverAndRespond278,206
AADP241,453
Outlook207,295
Exchange202,213
Teams127,055

Exchange and Teams are near-universal at 98.6% and 94.1% adoption respectively. The real opportunity lies in the middle tier: SharePoint (72.8%) and Intune (54.2%) represent proven services with room for growth. Power Automate and Power BI show the lowest adoption but the highest growth rates, suggesting early-adopter momentum that could be accelerated with targeted workshops.

View DAX Query - Adoption by Service
EVALUATE SUMMARIZECOLUMNS('BI_Lighthouse_Service_Usage'[service_name], "MAU", SUM('BI_Lighthouse_Service_Usage'[monthly_active_users]))
3.0 Adoption Gaps by Tenant

Tenants with the most unused services relative to their license entitlements.

Datum Corp
3 of 8 used
Northwind Traders
3 of 8 used
Proseware Inc
4 of 8 used
Tailspin Toys
4 of 8 used
Lucerne Publishing
5 of 8 used
Woodgrove Bank
5 of 8 used
TenantServices UsedEntitledGapUnused ServicesLicense Tier
Datum Corp385Intune, Defender, Power Automate, Power BI, SharePointE5
Northwind Traders385Intune, Defender, Power Automate, Power BI, SharePointE3
Proseware Inc473Defender, Power Automate, Power BIE3
Tailspin Toys484Intune, Power Automate, Power BI, DefenderE5
Lucerne Publishing572Power Automate, Power BIE3
Woodgrove Bank583Power Automate, Power BI, DefenderE5

Datum Corp and Northwind Traders only use 3 of 8 available services despite holding E5 and E3 licenses respectively. Datum Corp is particularly concerning since their E5 license includes advanced security and analytics capabilities that sit completely unused. A dedicated adoption workshop for these two tenants could unlock significant value.

View DAX Query - Adoption Gaps by Tenant
EVALUATE
SUMMARIZECOLUMNS(
    BI_Lighthouse_Adoption[tenant_name],
    "ServicesUsed", CALCULATE(DISTINCTCOUNT(BI_Lighthouse_Adoption[service_name]), BI_Lighthouse_Adoption[is_active] = TRUE()),
    "ServicesEntitled", DISTINCTCOUNT(BI_Lighthouse_Adoption[service_name])
)
ORDER BY [ServicesUsed] ASC
4.0 Tenant-Level Breakdown

Detailed view per tenant with key metrics highlighted.

TenantLicensesAffectedImpactSeverityStatus
Contoso Ltd2,840142$3,120
Fabrikam Inc1,92086$1,548
Woodgrove Bank1,58024$432
Adventure Works1,24067$1,206
Trey Research1,12012$216
Datum Corp86045$810
Proseware Inc7208$144
Lucerne Publishing98092$1,656
Tailspin Toys64038$684
VanArsdel Ltd6805$90

Contoso Ltd has the highest absolute impact with 142 affected licenses representing $3,120/month. Lucerne Publishing is proportionally worse at 9.4% of their licenses affected. Three tenants are in healthy status with fewer than 25 affected licenses each.

5.0 6-Month Trend

How this metric has changed over the past 6 months.

MonthTotalAffectedRateChange MoMStatus
Nov 20256,9402854.1%--
Dec 20257,0202984.2%+0.1%
Jan 20267,1103244.6%+0.4%
Feb 20267,1803514.9%+0.3%
Mar 20267,2903785.2%+0.3%
Apr 20267,3934125.6%+0.4%

The affected rate has climbed from 4.1% to 5.6% over six months, a 36.6% increase. The trend is accelerating: the month-over-month change grew from +0.1% in December to +0.4% in April. Without intervention, this metric is on track to exceed 6% by June.

6.0 Tenants Without Coverage

Managed tenants where this metric is not being tracked.

TenantLicensesLast ActivityRiskRecommended Action
Bellows College188Never syncedEnable monitoring
Adatum Corporation1122025-11-18Check connector
Wingtip Toys1422026-01-05Update permissions

Three tenants representing 442 licenses have no active monitoring for this metric. Bellows College has never synced data. The combined blind spot covers 6.0% of your managed license base.

7.0
Key Findings
!

Performance Gap Requires Attention

The gap between top and bottom performers is wider than expected. The bottom 20% scores more than 25 percentage points below the portfolio average, indicating structural issues that require targeted intervention.

!

Declining Trend in Moderate Risk Group

Entities in the moderate risk category show a declining trend over the past quarter. Without intervention, 3-4 of these entities may shift to the high-risk category within 60 days.

Top Performers Remain Consistent

The top 30% of the portfolio maintains stable performance above target, indicating current best practices are effective and can serve as a model for the rest.

8.0
Strategic Recommendations

1. Conduct a targeted review of all high-risk entities within 2 weeks. Document the root cause for each entity and create a remediation plan with clear deadlines and accountable owners.

2. Implement automated monitoring for the moderate-risk group. Set thresholds that trigger an alert when performance drops 5 percentage points below target, enabling early intervention before entities slip into high risk.

3. Schedule this report monthly as part of the QBR process. Use the trend data to verify that improvement initiatives are delivering measurable results across multiple quarters.

9.0
Frequently Asked Questions
How is service adoption measured?

A service is considered adopted when at least 10% of licensed users have been active in the last 30 days. Individual user adoption is measured by any meaningful interaction with the service.

Why does Power BI have the lowest adoption?

Power BI requires more specialized skills than basic productivity tools. Most organizations need training or a champion user to drive adoption beyond IT.

How can we increase adoption?

Start with lunch-and-learn sessions for underutilized services. Create template solutions (Power Automate flows, Power BI dashboards) that demonstrate immediate value.

Does higher adoption reduce churn?

Yes. Research shows that customers using 5+ M365 services have 3x lower churn rates than those using only 2-3 services. Adoption is your best retention tool.

What is the difference between DAP and GDAP?

DAP (Delegated Admin Privileges) grants broad admin access to all tenants. GDAP (Granular Delegated Admin Privileges) allows role-specific, time-limited access. Microsoft is deprecating DAP in favor of GDAP for better security.

How do we measure tenant onboarding completeness?

Track the percentage of baseline policies applied, security defaults enabled, and core workloads activated. A tenant is fully onboarded when all Lighthouse baseline recommendations show as compliant.

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