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Licenses are precious entities which must be managed efficiently; otherwise you would end up paying more for it than expected. Not all the users who have been assigned Microsoft 365 licenses would be utilizing it, or at least not all the services offered by Microsoft 365. You must also renew licenses at the right time to ensure a hassle free working environment. Hence, it is inevitable that you should maintain a hawk's eye on license usage.
To manage Microsoft 365 licenses efficiently, make sure that you know the answers for the following questions:
The License by Service Report provides you details on licenses assigned to each user in your organization and the services that are enabled for that particular user.
In License by Service Report, if you analyse the user attributes, (Department, Office, Usage location etc) you can determine whether a user has been over licensed or under licensed. For example, a temporary employee or a project trainee need not be given access to all the Microsoft 365 components. Using this information you can reassign the licenses suitably.
The License Details Report, provides you details on licenses purchased by you, and the number of valid licenses, unassigned licenses, expired licenses, locked out licenses, and more. The unassigned licenses count gives you the number of available licenses, that can be assigned to unlicensed users. The unlicensed users can be found easily using the Unlicensed Users Report.
M365 Manager Plus has an exclusive report to track down user account whose licenses are about to expire, to avoid last minute bottlenecks. You can schedule this report to constantly monitor the license status.
Apart from the above mentioned reports, you can also generate, Recently Modified Licenses to keep track of who did what change in licenses.
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