Who Are Unlicensed Users in Microsoft 365?

Unlicensed users in Microsoft 365 are accounts that exist in your tenant but do not have an active license assigned. These users can include external collaborators, inactive employees, or placeholders for future onboarding. While they don’t consume a paid license, they can still be a potential source of clutter, making it challenging to manage your tenant efficiently.

Challenges Posed by Unlicensed Users

• Tenant Clutter: Unlicensed accounts can accumulate over time, especially when users leave the organization, and their accounts remain unlicensed but not deactivated.
• Security Risks: Inactive but unlicensed accounts with sign-in access pose a risk if they are not monitored or deactivated.
• Compliance and Auditing Issues: Difficulty in identifying and reporting on unlicensed accounts can lead to gaps in audit trails.

How to Monitor Unlicensed Users in Microsoft 365

Using the Microsoft 365 Admin Center

To filter for unlicensed users using Microsoft 365 Admin Center, you have to do the following:

• Go to Users >> Active Users page >> Select Filter >> Select Unlicensed Users

Using Graph PowerShell

PowerShell scripts can be used to retrieve unlicensed users in the tenant. For example:

Get-MgUser -Filter 'assignedLicenses/$count eq 0' -ConsistencyLevel eventual -CountVariable unlicensedUserCount -All

While this method offers flexibility, it requires technical knowledge, manual effort, and additional scripting for tasks like filtering by department or exporting results.

Introducing the Microsoft 365 Unlicensed User Management Tool

The Microsoft 365 Unlicensed User Management Tool offers an intuitive and efficient way to manage unlicensed users in Microsoft 365. Designed to simplify tenant management, this free tool enables administrators to:

• Filter Unlicensed Users by Sign-In Status: : Easily identify active (sign-in allowed) and inactive (sign-in denied) users.
• Filter by Department or Job Title: : Narrow down user lists for targeted management.
• Search Unlicensed Users : Quickly locate users by first name, last name, UPN, Display Name, or email address.
• Export and Share Reports: :
  • Download reports as CSV for offline analysis.
  • Email detailed reports to stakeholders for review.

Why Choose This Tool?

Microsoft 365 provides built-in tools and methods to track active users:

1. Ease of Use: No scripting required. Get results with a few clicks.
2. Time Efficiency: Save hours by automating the filtering and reporting process.
3. Comprehensive Reporting: Generate detailed, shareable reports for auditing and compliance.
4. Actionable Insights: Gain clarity on unlicensed user distribution to optimize tenant management.

How to Get Started?

Download Microsoft 365 Unlicensed User Management Tool today! Start using the Unlicensed User Management Tool to take control of unlicensed accounts in your Microsoft 365 environment.

By simplifying tenant management, this free tool empowers administrators to focus on what truly matters—enhancing productivity and security across their organization.