How to stop paying for Microsoft 365 licenses nobody uses

Where the waste usually is

• Leavers whose accounts were blocked but still have a license
• Shared mailboxes with a paid license they don't need
• Accounts nobody has signed in to for 90 days or more
• Purchased licenses that aren't assigned to anyone
• People on Business Premium who only need Standard, or the reverse when security features are needed

Steps

1. 1

   Export license assignments

   List every licensed account with its last sign-in.

2. 2

   Convert leavers

   Convert leavers' mailboxes to shared, then remove the license.

3. 3

   Review inactive accounts

   Confirm with managers before blocking or converting them.

4. 4

   Reduce the subscription count

   Removing a license from a person doesn't reduce the bill. Lower the number of licenses on the subscription, keeping your commitment term in mind.

Doing it with TenantWard

The licenses report shows unassigned licenses, licensed leavers and inactive accounts, each with an action to free the license safely.