Office 365 excess licences (or wasted licences)

Title of the alert: “Possible Under Utilised Licenses”

Description: Alerts when the the number of licences allocated is less than the number assigned, resulting in 365 excess licences.


  • An allowed waste threshold can be set (count), enabling some wastage not to be reported.

The problem: This alert is triggered when the number of assigned licenses is less than the activated license count (potentially indicating under utilisation) .  Depending on the licences and how they are applied, it may also be a false positive.

Impact: If there is an actual under utilisation, then it may be possible to reduce required licences, potentially resulting in an ongoing cost-saving.

Suggested steps: Engage a technician to confirm that the alert is accurate, and take appropriate steps to bring the license count inline with your requirements.