License Usage

Software & LicensesAlso known as: License Usage, License Utilization, Software Usage, Use of Licenses
In brief

License usage (also license utilization) is the actual use of an assigned software license, measured by signals such as logins, last activity, or the use of specific features over a defined period. It shows whether paid and assigned licenses are needed, making it the basis for decisions on quantities, tiers, and renewals.

Key Takeaways

  • License usage is measured via signals such as logins and last activity.
  • Its informative value depends on what data a provider makes available.
  • Microsoft 365 shows last activity and license assignment per person in the Active Users report.
  • Lack of activity is a prompt to review, not proof that there is no need.

How is license usage measured?

License usage is measured via usage signals whose availability varies by application.

  • Last login or last activity per account
  • Active days within a period, such as 30 or 90 days
  • Use of specific features or modules
  • Visits to a web application in the browser

Why is an assignment list not enough?

An assignment list only shows permissions, not actions. Whether a person actually opens a tool cannot be read from it. Only usage data reveals which assigned licenses remain without activity for weeks. Microsoft, for example, provides reports that show last activity per service alongside the license assignment.

What are the limits of license usage as a metric?

Usage data is an indicator, not a final assessment. Seasonal tasks such as annual financial statements, cover arrangements, parental leave, or missing data from the provider can obscure genuine usage. Conversely, a single login does not prove genuine need. Therefore, the responsible person should always be consulted before canceling.

Example: License Usage in practice

Real-world example

Example: A management consultancy with 90 employees has assigned 75 licenses for a whiteboard tool. Over the past 30 days, 48 accounts show activity. Of the 27 inactive accounts, 6 belong to employees on parental leave, while the remaining 21 are revoked after checking back.

License Usage vs. License Assignment

AspectLicense UsageLicense Assignment
Meaningwho actually uses the softwarewho is permitted to use it
Data sourceLogins, activity dataAdmin console, directory service
Time referenceActivity over a periodState at a point in time

License usage measures actual activity over a period, whereas license assignment only records who is permitted to use software.

How does Sovaro help with License Usage?

How Sovaro helps

Sovaro detects used apps via the Sovaro Agent and the browser extension, even without SSO. Licenses without usage for 30 days are flagged; whether you revoke or cancel them is decided by your team.

Frequently Asked Questions about License Usage

Sources

See Sovaro with your own data.

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