Overview
SCU Cost Estimate
This agent typically consumes 1-3 SCUs per optimization analysis, depending on the size of your user base and number of license SKUs being analyzed.
Introduction
License Optimizer helps you stop wasting money on unused licenses. If you've ever wondered how many of your Microsoft 365 licenses are actually being used, or whether users really need all the features they're assigned, this agent is for you. It analyzes actual usage patterns, identifies underutilized licenses, recommends optimal assignments, and shows you exactly where you can cut costs without impacting user productivity.
What It Does
Analyzes license utilization across all Microsoft 365 and Azure licenses
Identifies unused licenses assigned to inactive users or never used
Tracks feature usage to see which service plans are actually being consumed
Recommends optimal assignments based on real usage patterns
Detects duplicate licenses where users have overlapping service plans
Finds inactive users who are consuming licenses but not using services
Projects license needs with forecast modeling for future planning
Calculates cost savings showing exactly how much you can save
Provides reassignment plans with specific actions to optimize allocation
Use Cases
1. Reducing License Spend
You're paying for hundreds or thousands of licenses but suspect many aren't being used. License Optimizer analyzes actual usage data, identifies licenses assigned to inactive users, finds underutilized premium licenses, and shows you exactly which licenses can be removed or downgraded. Get specific cost savings recommendations with dollar amounts.
2. Right-Sizing License Assignments
Users have E5 licenses but only use features available in E3. License Optimizer tracks which service plans are actually being consumed, compares against license tiers, and recommends downgrading users to cheaper SKUs when they don't need premium features. Save money without affecting productivity.
3. Cleaning Up After Departures
Employees have left but their licenses are still assigned. License Optimizer identifies inactive users based on sign-in patterns and service usage, then provides a list of licenses that can be immediately reclaimed. Stop paying for accounts that aren't being used.
4. Eliminating License Duplication
Users have multiple licenses with overlapping service plans (like having both E3 and E5, or redundant add-ons). License Optimizer detects these duplications and recommends consolidation to eliminate unnecessary spending.
5. License Forecasting and Budgeting
You're planning next year's budget and need to project license costs. The agent analyzes usage trends, user growth patterns, and consumption rates to forecast future license needs. Make informed budget decisions based on actual data, not guesswork.
Why License Optimizer?
No visibility into actual usage: You know how many licenses you bought, but not how many are actually used
Usage analytics: See exactly which licenses are being used and which are sitting idle
Overprovisioned premium licenses: Users have expensive licenses but only use basic features
Right-sizing recommendations: Identify who can be downgraded without losing needed functionality
Inactive accounts consuming licenses: Former employees or inactive users still have licenses assigned
Inactive user detection: Find accounts that aren't signing in or using services
Complex licensing models: Too many SKUs, unclear which users need what
Optimal assignment guidance: Recommendations based on actual usage patterns
Duplicate licenses wasting money: Users with overlapping service plans from multiple licenses
Duplication detection: Identify and eliminate redundant license assignments
Budget planning guesswork: Unclear how many licenses you'll need next year
Forecasting: Project future needs based on trends and growth patterns
How It Works
What goes in:
User license assignments from Entra ID
Microsoft 365 usage reports (email, Teams, SharePoint, OneDrive, etc.)
User activity logs and sign-in patterns
Service plan consumption data
Application usage metrics
License SKU information and pricing
Billing and cost data (if available)
What it does:
Analyzes which licenses are assigned to each user
Tracks actual usage of each service plan
Identifies sign-in patterns and activity levels
Compares assigned features vs used features
Detects duplicate or overlapping service plans
Calculates utilization rates and cost per user
Forecasts future license needs based on trends
Generates optimization recommendations with cost impact
What you get:
License optimization report with utilization rates
Cost savings recommendations with dollar amounts
Underutilized license inventory (who has what they're not using)
Reassignment action plan (specific users to downgrade or remove)
Inactive user list with last sign-in dates
Duplicate license detection with consolidation recommendations
Usage trend analysis showing consumption patterns over time
License forecast projections for budget planning
Compliance status summary ensuring proper assignment policies
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