Unused licenses

Last updated Oct 17, 2026 Policies Licences & Costs

AI summary

Identify Microsoft 365 subscriptions with unused license units to spot budget waste from over-provisioning. Adjust enabled unit counts to match actual consumption plus a reasonable growth buffer.

Severity: Low Costs Generally available

What it detects

Shows M365 licenses with more enabled units than consumed units.

Why it matters

Licenses with more enabled units than consumed indicate subscription oversizing that wastes budget without providing value. Adjust enabled unit counts to match actual consumption plus a reasonable buffer for growth, implement quarterly reviews through Rencore Governance to track utilization trends, and maintain optimal license levels that balance cost efficiency with operational flexibility for new user onboarding.

The rule

Every Subscription where Units unused is greater than 0

In Rencore Governance

Details

Applies to	Subscription
Connector	Microsoft 365
Severity	Low
Category	Costs
Recommended	No
Recommended automation	None
License type	Standard

Other policies that check Subscription objects:

Licenses assigned to external users (Medium)
Licenses assigned to inactive users (Medium)
Licenses assigned to disabled users (Medium)
Licenses with less than 10 units available (Information)
License usage for Visio, Project and Power BI Pro (Medium)
Licenses with unused seats (Medium)

Frequently asked questions

What does the unused licenses policy detect?

The Unused licenses policy shows M365 licenses with more enabled units than consumed units.

Which objects does the unused licenses policy check?

The Unused licenses 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 unused licenses policy?

Violations of the Unused licenses policy have Low severity. The policy is in the Costs category.

Which module includes the unused licenses policy?

The Unused licenses policy comes with the Microsoft 365 connector in the Digital Workplace module of Rencore Governance, which every Plan includes.

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