Mike Austin breaks down how Microsoft measures license consumption: 85 of 200 licenses assigned (42.5%), but only 22.9% of services actually used. The video maps M365 SKU plans to individual services within the bundle.
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But we want to look and see, okay, what have we bought and what do we have assigned? Microsoft considers consumption based on the percent of licenses that are allocated. So in this case, it's 42.5%. And that's because 85 of 200 have been assigned, which is 42.5%. So Microsoft assumes this account is 42%, is consuming 42% of the licenses. Now, as we talked about on the last slide, we said that O365, M365 is made up of a number of services. So when I clicked on it, the services that M365 are made up of showed up over here. And so some of these are very easy to see. These are the plans within that SKU or those services. So some of them are pretty easy to understand. This Office subscription is your Microsoft 365 enterprise apps or Office. This is your Active Directory, the Azure Ad Plan. That's the free one. Or, sorry, that's the premium one. So that's the plan one. All of these map back to services that are in these boxes. What we can actually see is that although 42% of the licenses are assigned or consumed, in Microsoft words, this account is only using 22.9% of the actual services in that bundle.