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M365 License Optimization

The Microsoft Licenses page in Chronom provides a comprehensive view of your organization's Microsoft 365 license portfolio, helping you identify waste, optimize assignments, and reduce costs.

Accessing the License Page​

Navigate to Inventory → Microsoft Licenses from the top navigation bar.

Microsoft 365 License Overview

Understanding the Dashboard​

Filter Tabs​

At the top of the page, filter tabs let you scope the view:

TabDescription
AllEvery M365 license in your tenant
PaidOnly licenses with a cost (e.g. Microsoft 365 E3, E5)
FreeComplimentary or included licenses
TrialLicenses in a trial period

Each tab shows a count of matching licenses so you can quickly see the distribution.

Use the search bar to find specific licenses by name or SKU.

License Table​

Each row in the table represents a license type and shows:

ColumnDescription
NameThe license display name (e.g. Microsoft 365 E5)
Potential SavingsEstimated monthly or annual savings if recommendations are followed
MSRP/YearThe list price per user per year for this license
RecommendedNumber of actionable recommendations for this license
WasteA percentage bar showing how much of this license's spend is wasted (assigned but unused)

Working with License Details​

Click the expand arrow on any license row to see detailed user-level data:

  • Assigned users — Which users hold this license
  • Usage status — Whether each user is actively using the license features
  • Recommendations — Specific actions such as:
    • Remove — User has not used the license in the analysis period
    • Downgrade — User's usage pattern matches a lower-tier license
    • Reassign — License could be better utilized by another user or team

Optimization Workflow​

  1. Sort by Waste — Click the Waste column to surface the most wasteful licenses first
  2. Review Recommendations — Expand high-waste licenses and review the per-user recommendations
  3. Take Action — Work with your IT admin to implement the recommended changes in the Microsoft 365 Admin Center
  4. Monitor Progress — Chronom rescans on your configured schedule, so savings will be reflected in subsequent scans
tip

Focus on Paid licenses with high Waste percentages first — these represent the quickest wins for cost reduction.

Common Scenarios​

Unused E5 Licenses​

Users assigned Microsoft 365 E5 who only use basic email and calendar features. Chronom recommends downgrading to E3 or Business Basic, potentially saving hundreds of dollars per user per year.

Departed Employee Licenses​

Licenses still assigned to users who have left the organization. Chronom flags these for removal.

Trial License Cleanup​

Trial licenses that have expired but are still assigned. Removing these keeps your license inventory clean.