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Microsoft 365 license management with Microsoft Entra sign-in data
Microsoft 365 is usually the largest per-seat line in an IT budget, and licenses are easy to leave assigned to people who have moved on. LicenseSphere 360 lets you record your Microsoft 365 licenses, connect Microsoft Entra on demand, and flag seats whose holders have not signed in for 45 days.
What you can do
- Record your Microsoft 365 licenses in the central inventory with seat count, cost, renewal date and purchase order or contract reference.
- Allocate seats to users by email, alongside every other license that person holds.
- Connect Microsoft Entra / Microsoft 365 through Microsoft Graph using credentials you provide. They are encrypted at rest.
- Run the sync on demand. It reads each user's last sign-in time and disabled state and flags seats idle after 45 days without a sign-in.
- Get renewal alerts at 30 days, 60 days and when expired, optionally also in Microsoft Teams through an incoming webhook.
How a review looks
Before each renewal or true-up, run the Entra sync and open the list of flagged seats. For each one, decide whether the person has left, is on long leave, or simply signs in rarely, for example a shared mailbox owner or an occasional approver. Reclaim the seats you confirm are not needed, with the reclaim recorded in the audit trail, then reduce the quantity at renewal.
Because every action is recorded and the audit trail exports to CSV, finance can see what changed and why without a separate spreadsheet.
Honest limits
- The sync is on demand, not continuous. Run it when you need fresh data.
- The idle signal is sign-in activity, not feature usage inside Word, Excel or Teams.
- Reclaiming a seat is a manual action in LicenseSphere 360 that is recorded in the audit trail. It does not change the license assignment in the Microsoft admin centre, so remove it there too.
- This is a license and seat tracking tool, not a replacement for the Microsoft admin centre.
Common reasons an assigned seat is not in use
Each of these shows up differently in sign-in data, which is why the flag is a prompt to check rather than an instruction to remove.
- The employee left and the account was disabled but the license was never removed.
- A contractor engagement ended and the mailbox was kept only for archive purposes.
- A department bought a higher-tier plan for a few users who only need email.
- A shared or role-based account was given a full seat out of habit.
Beyond Microsoft 365
The same inventory holds every other license you track, so the Microsoft 365 seats sit next to your design, security and developer tools. If you use Google Workspace as well, see Google Workspace license management. For the wider picture, start with software license management or SaaS license management.
$2 per managed unit per month, prepaid and billed monthly through Paddle. A person holding Microsoft 365 plus any number of other licenses is one managed unit.
Frequently asked questions
Does LicenseSphere 360 assign or remove Microsoft 365 licenses?
No. It tracks and analyses. Seat reclaim is a manual action recorded in LicenseSphere 360 and does not change assignments in Microsoft.
What data does the Entra connection read?
Each user's last sign-in time and disabled state. Credentials you provide are encrypted at rest.
Can I sign in with my Microsoft account?
Yes. Users sign in with Google or Microsoft. Users are provisioned in advance by your organisation.
Related guides
Try LicenseSphere 360 free for 14 days
Self-serve 14-day free trial of 20 managed units (users or endpoints combined): sign in with Google or Microsoft, enter your company name and accept the Terms, and your trial workspace is created instantly. No credit card. Nothing is charged automatically. If you do not subscribe, trial data is permanently deleted 3 days after the trial ends. $2 per managed unit per month, prepaid and billed monthly through Paddle.