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ENTRA.LC.3001 - License SKUs Should Not Exceed 95% Utilization

Description​

This test validates that no Microsoft 365 license SKU exceeds 95% utilization in your tenant. Reaching capacity on critical licenses can prevent new user provisioning, block existing users from accessing services during license reassignment, and cause unexpected business disruptions.

Policy Statement​

Contoso's company policy requires proactive monitoring of license capacity to ensure sufficient availability for business operations, seasonal growth, and emergency provisioning needs. The 95% threshold provides advance warning before reaching 100% capacity, allowing time for procurement and license activation.

Why This Matters​

Running out of licenses creates several critical business impacts:

  • User Provisioning Blocked: Cannot assign licenses to new employees or contractors
  • Service Disruption: Existing users may lose access during license reallocation
  • Business Continuity: Emergency access requests cannot be fulfilled
  • Productivity Loss: Users waiting for licenses cannot access Microsoft 365 services
  • Compliance Risk: Unlicensed users may create shadow IT solutions

License Types Monitored​

The test monitors all active SKUs including:

  • Microsoft 365 E3/E5 licenses
  • Microsoft 365 Business Basic/Standard/Premium
  • Exchange Online Plans
  • Teams, SharePoint, and other service-specific licenses
  • Add-on licenses (Phone System, Audio Conferencing, etc.)

How to Fix​

Step 1: Review Utilization Details​

Run the test to identify which license SKUs are over-utilized. The test results show:

  • License SKU name and ID
  • Current utilization percentage
  • Consumed units vs. enabled units
  • Available units remaining

Step 2: Calculate License Requirements​

Determine how many additional licenses you need:

Immediate needs = (Consumed units) - (Enabled units) + buffer
Recommended buffer = 5-10% of total licenses

Consider upcoming hires, projects, or seasonal needs in your calculation.

Step 3: Purchase Additional Licenses​

Option A: Microsoft 365 Admin Center​

  1. Navigate to Microsoft 365 admin center - Purchase services
  2. Go to Billing > Purchase services
  3. Search for the license type that's over-utilized
  4. Click Details on the matching product
  5. Click Buy and specify the number of additional licenses
  6. Complete the purchase workflow

Option B: Add Licenses to Existing Subscription​

  1. Navigate to Microsoft 365 admin center - Your products
  2. Go to Billing > Your products
  3. Select the subscription that needs more licenses
  4. Click Buy licenses or Add licenses
  5. Enter the quantity of additional licenses
  6. Review and complete the purchase

Note: License purchases may require approval from procurement or finance teams.

Option C: Contact Microsoft Partner​

If your organization purchases through a Cloud Solution Provider (CSP) or Enterprise Agreement:

  1. Contact your Microsoft partner or account manager
  2. Request additional licenses for the over-utilized SKU
  3. Provide the SKU part number from the test results
  4. Specify the quantity needed

Set up regular monitoring to track license usage over time:

# Check current license utilization for all SKUs
Connect-MgGraph -Scopes "Organization.Read.All"

Get-MgSubscribedSku | ForEach-Object {
    $enabled = $_.PrepaidUnits.Enabled
    if ($enabled -gt 0) {
        $utilization = [math]::Round(($_.ConsumedUnits / $enabled) * 100, 2)
        [PSCustomObject]@{
            License = $_.SkuPartNumber
            Consumed = $_.ConsumedUnits
            Enabled = $enabled
            Available = $enabled - $_.ConsumedUnits
            'Utilization %' = $utilization
        }
    }
} | Where-Object {$_.'Utilization %' -gt 80} | 
    Sort-Object 'Utilization %' -Descending | 
    Format-Table

Important Considerations​

  • Purchase Timing: License activation can take 24-48 hours after purchase
  • Auto-Renewal: Enable auto-renewal to prevent unexpected license expiration
  • License Optimization: Review assigned licenses to reclaim unused licenses before purchasing
  • Cost Management: Balance license availability with cost efficiency
  • Compliance: Ensure you maintain enough licenses for all active users