License Governance
How IdentityOps detects wasted Microsoft 365 license assignments and surfaces reclaimable savings with honest confidence tiers.
Applies to: Free+ (savings estimates: Pro)Module: License Governance
What License Governance does
License Governance analyzes your Microsoft 365 license assignments against user activity, account status, and subscription data. It identifies licenses assigned to users who are not using them — disabled accounts, departed users, and long-inactive accounts — and calculates honest savings estimates broken down by confidence tier.
Unlike vendor-optimistic tools, IdentityOps separates guaranteed waste from likely waste from cases that need human review. You always know exactly how confident the estimate is.
What gets scanned
Each scan reads the following data from Microsoft Graph to build the license waste analysis:
All tenant SKU subscriptions (e.g., Microsoft 365 E3, EMS E5, Power BI Pro)
Per-user license assignments across every subscription
User sign-in activity from Entra audit logs
User account status (enabled, disabled, deleted)
Three confidence tiers
Waste findings are classified into three tiers based on how confident IdentityOps is that the license can be reclaimed. Savings are always shown per tier so you know what is guaranteed versus speculative.
Guaranteed
Disabled or departed users with active license assignments. No debate — these licenses are definitively wasted and immediately reclaimable.
Likely
Users with no sign-in activity for 90+ days who are not flagged as service accounts. High confidence these are reclaimable, but worth a quick check.
Review
Service accounts, shared mailboxes, and edge cases. These may be intentionally assigned. Requires human judgment before reclaiming.
Savings estimates
IdentityOps uses a three-tier cost model to calculate potential savings. The most specific pricing source available is used automatically.
1Custom pricing
You configure per-SKU monthly costs in pricing settings. This is the most accurate option if you have an Enterprise Agreement or negotiated rates.
2Microsoft list prices
Built-in reference prices for approximately 35 common Microsoft 365 SKUs. Used automatically when custom pricing is not configured.
3None
If neither custom nor list pricing is available for a SKU, savings amounts are not shown. Waste counts are still displayed.
SKU Intelligence
Microsoft uses internal SKU identifiers that are difficult for humans to read. IdentityOps translates these into friendly names throughout the interface.
| Microsoft SKU ID | Friendly name |
|---|
| ENTERPRISEPACK | Office 365 E3 |
| SPE_E3 | Microsoft 365 E3 |
| SPE_E5 | Microsoft 365 E5 |
| EMSPREMIUM | Enterprise Mobility + Security E5 |
| POWER_BI_PRO | Power BI Pro |
IdentityOps also detects bundling and redundancy. For example, EMS E3 is included in Microsoft 365 E3 — if a user has both assigned, the standalone EMS E3 license is redundant and flagged as reclaimable.
Actions
View waste users per SKU: Drill into any subscription to see which users are flagged, with the reason for each (disabled, inactive, duplicate).
Export waste findings as CSV: Download a spreadsheet of all waste findings for offline review or to share with procurement and IT leadership.
Configure custom per-SKU pricing: Set your actual contract costs per license per month for accurate savings calculations.
Acknowledge findings: Mark a finding as reviewed so your team knows it has been evaluated. Tracks who acknowledged it and when.
Feature availability
Savings estimates (dollar amounts) require the
Pro plan. Free and Starter plans can see waste counts and user breakdowns, but dollar amounts are not displayed. Upgrade from
Settings → Billing to unlock full savings estimates.
IdentityOps Recommendation
Reclaim guaranteed waste first — disabled users with active licenses are risk-free wins. “Likely” waste should be reviewed with the team before removing.
Where teams usually go next