Practical guide · Licences
An assigned licence is not the same thing as a useful one.
Microsoft 365 licences often pile up out of habit - copying the last hire’s assignment instead of checking what the role actually requires. Licence hygiene connects every assignment to a current reason.
The decision to make
This guide helps decide when a licence review is enough, when a role-based profile becomes worthwhile, and what stays a cost decision that belongs to your organization, not this website.
An assigned licence is not necessarily a used one
A person can hold a full licence without using the features that justify its cost. Review compares assignment against real use rather than assuming more licence always means more value.
Orphaned licences cost money before anyone notices
A disabled account or an unclosed departure can keep carrying a licence for months. Connecting licence review to the lifecycle process closes this quiet leak.
- Disabled accounts are checked against their active licences
- A departure triggers a licence check, not just an account block
- Overlap between an old role and a new one is flagged
A role-based profile speeds up future assignment
Documenting what a typical role receives - base licence, groups, applications - makes each new assignment faster and more consistent than copying the last account created.
Add-on modules deserve their own review
Copilot, Teams calling, advanced device management, or other add-ons carry a cost separate from the base licence. A separate review confirms who genuinely needs them instead of letting them ride along with general assignment.
A simple matrix for assigning the work.
| Situation | Owner | Cadence | Useful evidence |
|---|---|---|---|
| Disabled or departed account | M365 owner | At every departure | Licence removed or reassigned |
| Standard role | Manager + M365 | Agreed review | Confirmed licence profile |
| Add-on (Copilot, calling…) | Business sponsor | Separate review | List of justified holders |
Decision checklist
What should be true before considering this area under control.
- No active licence remains on a disabled account
- Common roles follow a documented licence profile
- Add-ons have a list of justified holders
- Gaps between assignment and use are explained
- Licence cost stays a decision made by your organization
Next step
Compare licence cost with the service levels.
CAD pricing covers the management service, never Microsoft licences. Then see the readiness list to name the licences that deserve a first review.