If you're running an MSP, there's a good chance you're paying for Microsoft 365 licenses that no one is using.
This is a common issue we see with partners—especially those managing multiple tenants—and it’s often missed until it’s already impacted your bottom line.
In this post, we’ll explore how license overspend happens, why it’s so easy to overlook, and how MSPs can put simple controls in place to track, optimise, and protect their license usage across all customers.
The Hidden Cost of Unused M365 Licenses
Here’s a real-world example we’ve seen time and time again:
- A user leaves a client organisation.
- You offboard them and remove the license from your client’s monthly invoice.
- But… no one actually removes the license from your CSP portal.
The result?
You’re still being billed by your distributor, but no longer passing that cost on to your client. Over time, that’s money lost—often without you even realising.
Multiply that across multiple tenants and it adds up fast.
Why It’s Hard to Track M365 License Usage Manually
Microsoft 365 licensing is notoriously complex. Without the right tools, most MSPs rely on a mix of PowerShell scripts, spreadsheets, and tenant-by-tenant checks to:
- Identify unused or expired licenses
- Track which users have active license assignments
- Compare billing vs usage across tenants
- Detect sudden spikes or drops in license counts
This is time-consuming, error-prone, and difficult to scale—especially as your client base grows.
What MSPs Are Searching For Right Now
We’ve seen a huge spike in MSPs looking for solutions around:
- M365 license management across multiple tenants
- Unused license tracking in Microsoft 365
- How to reduce Microsoft 365 costs for clients
- Tools to audit Office 365 licenses
- Automated license reporting for MSPs
If you're searching for answers in these areas—you’re not alone.
A Smarter Way to Manage Microsoft 365 Licensing
We created MSP Easy Tools to help solve exactly this kind of problem. Here's how it helps MSPs:
- 🔍 Instant visibility of license usage by user, tenant, and license type
- 🚨 Alerts when license counts change unexpectedly
- 📊 Weekly reports showing expired, unused, or over-allocated licenses
- 💸 Helps avoid license overspend—saving both you and your clients money
Bonus: Most of our tools don’t require premium M365 licenses, so you can offer valuable reporting, automation, and security checks without forcing clients to upgrade to expensive plans.
Go Beyond Licensing
MSP Easy Tools isn’t just for license management. It gives you a full operational view across your Microsoft 365 clients, including:
- ✅ Real-time monitoring & alerting
- ✅ Security misconfiguration detection
- ✅ Compliance and best practice tracking
- ✅ Automated fix tools to resolve issues fast
- ✅ Client-ready reporting you can use in QBRs or support reviews
It’s all designed to make Microsoft 365 easier, safer, and more profitable to manage—at scale.
Final Thoughts
Microsoft 365 license leakage is a real problem—but it’s one that’s completely avoidable with the right visibility and automation.
If you’re spending hours on manual tracking—or worse, not tracking at all—it’s time to rethink how you're managing M365 across your clients.
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