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Licenses assigned to external users

Last updated Policies Licences & Costs Microsoft 365

AI summary

Rencore Governance detects Microsoft 365 licenses assigned to external users, which consume resources intended for staff and may provide broader access than necessary. Review results to revoke unnecessary assignments and consider implementing approval workflows for external license requests.

Severity: Medium Costs Recommended Generally available

What it detects

Shows licenses which are assigned to external users and could be removed or might unnecessary.

Why it matters

External users with Microsoft 365 licenses consume resources intended for internal staff and may have broader access than necessary for external collaboration. Review all externally assigned licenses to validate business requirements, revoke unnecessary assignments to reduce costs, and implement approval workflows for any external license requests to ensure appropriate resource allocation and maintain cost control.

The rule

Every Subscription that has any License assignments where Is External is true

In Rencore Governance

The Licenses assigned to external users policy in Rencore Governance: the rule, its trend and the objects that match it
The policy page in a Rencore demo Environment, captured October 2026.

Details

Applies to Subscription
Connector Microsoft 365
Severity Medium
Category Costs
Recommended Yes
Recommended automation None
License type Standard

Other policies that check Subscription objects:

Frequently asked questions

What does the licenses assigned to external users policy detect?

The Licenses assigned to external users policy shows licenses which are assigned to external users and could be removed or might unnecessary.

Which objects does the licenses assigned to external users policy check?

The Licenses assigned to external users policy checks Subscription objects from the Microsoft 365 inventory and reports each one that matches its rule as a violation.

How severe is a violation of the licenses assigned to external users policy?

Violations of the Licenses assigned to external users policy have Medium severity. The policy is in the Costs category.

Which module includes the licenses assigned to external users policy?

The Licenses assigned to external users policy comes with the Microsoft 365 connector in the Digital Workplace module of Rencore Governance, which every Plan includes.