Introduction
Managing IT budgets while providing employees with the right productivity tools requires continuous attention. In a growing organization, Microsoft 365 subscription costs can increase quickly if licenses are assigned without regular reviews.
Premium add-ons such as Visio Plan 2, Project, Microsoft 365 Copilot, and Power BI Pro can be particularly easy to overlook when employees change roles or finish projects.
The Microsoft 365 Admin Center Usage Reports help IT administrators understand how employees use Microsoft 365 services. By combining usage reports with license assignments, business requirements, and subscription costs, IT teams can identify potential savings and make better licensing decisions.
In this guide, I’ll explain how IT managers can review usage reports, assess add-on licenses, investigate Power BI Pro usage, and establish a practical license review process.
1. Start with the Right Microsoft 365 License Strategy
Not every employee needs the same Microsoft 365 subscription. The best approach is to match each license to the employee’s role, required applications, security requirements, and storage needs.
Microsoft 365 E3 vs. Business Standard
Microsoft 365 E3 and Business Standard provide different combinations of applications, services, and security capabilities. They should not be treated as interchangeable simply because both provide access to Microsoft 365 services.
For example:
- Microsoft 365 E3: May suit employees who need enterprise-level capabilities, including the specific security, identity, device-management, and productivity features included in the organisation’s subscription.
- Microsoft 365 Business Standard: May suit eligible smaller organisations and users who primarily need Office applications, email, and standard collaboration services.
Before moving a user to a lower-cost plan, compare the included features carefully. Check whether the employee depends on capabilities such as Microsoft Entra ID P1, Intune, advanced security controls, or other services that may not be included in the replacement subscription.
Also check the eligibility and user-count conditions for Microsoft 365 Business plans before using them in an enterprise environment.
Be Careful When Using Licenses for Storage
A licensed user generally receives a OneDrive for Business storage allocation, commonly 1 TB under eligible plans. However, assigning Business Standard solely to obtain more storage is not automatically the most cost-effective or appropriate solution.
OneDrive is designed for an individual user’s work files. For departmental documents, shared business records, or data that must remain available independently of a particular employee, SharePoint Online may be more appropriate.
Before purchasing additional storage or assigning another license, compare:
- The actual storage requirement.
- Whether the data belongs in OneDrive or SharePoint.
- The cost of the required subscription or storage add-on.
- The relevant Microsoft licensing terms.
- Data ownership, retention, backup, and access requirements.
Practical tip: Review both license utilisation and storage utilisation. A user who rarely uses an application may still have important data or business responsibilities that make a license change inappropriate.
Before reviewing your Microsoft 365 license strategy, it is also worth checking whether your security and device-management settings match the licenses assigned to your users. In my article, Microsoft 365 Security: 7 Practical Settings Every Business Should Review, I cover important security settings that businesses should review as part of their Microsoft 365 administration.
2. Audit Add-on Licenses Using Usage Reports
Specialised add-ons can create avoidable costs when they remain assigned after an employee changes roles or finishes a project.
Examples include Visio Plan 2, Project plans, and Microsoft 365 Copilot.
Where to Find Usage Reports
- Sign in to the Microsoft 365 Admin Center.
- Select Reports. If it is not visible, select Show all first.
- Select Usage.
- Open the relevant service report, such as Visio, Project, or Microsoft 365 Copilot, where available.
- Review the activity information and last activity dates.
- Export the report when you need to sort or compare a larger number of users.
The reports available depend on the product and subscription. Microsoft generally provides reporting periods such as 7, 30, 90, or 180 days, although the options vary by report. Usage data may also take time to appear.
See Microsoft’s Microsoft 365 Admin Center usage reports overview for current report availability and navigation details.
License reviews are also closely connected to endpoint management. When employees change roles or leave the organisation, IT teams should consider both their Microsoft 365 licenses and their access to company-managed devices. In my guide, Microsoft Intune: How I Manage Company Laptops and Devices, I explain how Intune fits into day-to-day device management.
Use a 60-Day Review Threshold — Not an Automatic Rule
A 60-day inactivity threshold can be a useful internal review trigger, but it should not be treated as a universal Microsoft recommendation or an automatic reason to remove a license.
For example, an employee may use Visio only during occasional projects. A manager may need Project or Power BI access only at certain points in a reporting cycle. An absence, temporary reassignment, or reporting limitation can also affect the apparent activity level.
A safer review process is:
- Identify licenses with no recorded activity over the chosen period.
- Confirm the user’s role and whether the application is still required.
- Ask the employee or manager to confirm business needs.
- Check for dependencies, ownership, and any data-access implications.
- Remove or reassign the license only after approval.
For premium add-ons, you can use 60 days as a starting point and adjust the review period to suit the application and the organisation’s work patterns.
Important: Usage reports are indicators, not a complete record of every business requirement. An absence of recorded activity does not, by itself, prove that a license is unnecessary.
3. How to Review Power BI Pro Usage
Power BI requires a slightly different approach from the standard Microsoft 365 usage reports.
If you want to determine whether a Power BI Pro license is being used, consider the relevant Power BI usage metrics and activity logs rather than relying only on the main Microsoft 365 Admin Center dashboard.
Option A: Review Report Usage Metrics
Power BI report usage metrics can help report creators understand how reports are being used, including report views and viewer patterns.
Depending on the report and your permissions:
- Open the Power BI Service.
- Navigate to the relevant workspace and report.
- Open the report’s usage metrics, where available.
- Review the available usage information.
There are limitations. Access to usage metrics depends on the relevant permissions and configuration, and running usage metrics reports requires a Power BI Pro or Premium Per User license. The metrics can help assess report engagement, but they do not automatically provide a complete tenant-wide license audit.
See Microsoft’s guide to Monitor usage metrics in Power BI workspaces.
Option B: Review Power BI Activity Logs
For a broader administrative review, Power BI administrators can use the Power BI activity log to investigate activities such as report viewing, publishing, and other recorded operations.
Microsoft documents a method for retrieving activity events through the Power BI Management PowerShell module. This is more suitable for administrators who need a repeatable audit process or a wider view of tenant activity.
See Microsoft’s Power BI activity log guide.
The important distinction is that report usage metrics and activity logs serve different purposes. Usage metrics help explain report engagement; activity logs provide a broader record of supported administrative and user activities. Neither should be treated as a direct, complete list of licenses that can safely be removed without further checks.
4. A Practical License Audit Checklist for IT Managers
Use the following process as a starting point for a monthly or quarterly review.
| Step | Focus area | Recommended action |
|---|---|---|
| 1. Review subscriptions | E3 vs. Business Standard and other plans | Confirm each plan matches the user’s role, security needs, and licensing eligibility. |
| 2. Review add-ons | Visio, Project, Copilot | Check the relevant usage reports and identify licenses that may no longer be needed. |
| 3. Validate inactivity | Users with little or no recorded activity | Use a defined review period, such as 60 days, to trigger a business-needs check. |
| 4. Review Power BI | Power BI Pro | Use available usage metrics and activity logs to assess actual use. |
| 5. Confirm before changes | Employee and manager requirements | Validate dependencies, ownership, and future needs before removing a license. |
| 6. Reconcile subscriptions | Assigned and available licenses | Compare license assignments with purchased subscriptions before requesting additional seats. |
The Microsoft 365 Admin Center also provides license information under Billing → Licenses, while Users → Active users can help administrators review user accounts and assigned products.
For organisations with many users, exporting reports and comparing them with license assignments can make the process more efficient.
5. YouTube Resources for Microsoft 365 Administrators
If you are learning the Microsoft 365 Admin Center, these videos may provide useful supplementary demonstrations.
- Microsoft 365 Admin: What Every IT Technician Must Know — Jake’s Tech
- How to Manage Microsoft 365 Licenses and Billing Options in the Admin Center Portal — Level Up with Louis
These videos are supplementary learning resources. Microsoft’s official documentation should remain the primary reference when checking current licensing rules, report availability, and administrative procedures.
Conclusion
Microsoft 365 usage reports can help IT managers identify underused services, review premium add-ons, and make more informed licensing decisions.
The most effective approach combines activity data with license assignments, employee requirements, subscription conditions, and business context. A 60-day review threshold can help identify candidates for investigation, but licenses should not be removed based on inactivity alone.
By reviewing licenses regularly and validating the business need before making changes, IT teams can reduce avoidable spending while ensuring employees retain the tools and capabilities they need.
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