Microsoft licensing can be a complex task considering the plethora of services and products offered. A crucial aspect of managing Microsoft 365 environment is effectively managing and monitoring license allocations. In preparation for the MS-100 Microsoft 365 Identity and Services exam, here’s an in-depth look at licensing in Microsoft 365 and how you can efficiently manage and monitor their allocation.

Table of Contents

Understanding Microsoft 365 Licensing

As a Microsoft 365 admin, you are required to have an understanding of license assignments. Users need to be assigned appropriate licenses before they can use Microsoft 365 services. These licenses are tied to a variety of service plans such as Exchange Online, SharePoint Online, Teams, etc. Each license might come with different offerings, thus understanding what each license includes is vital.

Some of the available licenses include Microsoft 365 E5, E3, E2, F3, A5, A3, etc. Each of these licenses offers a different set of services. For example, the E5 license includes premium offerings such as Power BI Pro and Azure AI services. On the other hand, E3 excludes these premium services.

Managing License Allocation

There are several methods to get users the licenses they need. In small organizations, you might just assign licenses manually to each new user as they come on board. Larger organizations, however, will likely want to automate this process.

You can assign licenses either via the Microsoft 365 admin center or by employing PowerShell. PowerShell is more tech-intensive but it gives you more options if you need to make bulk changes or automate your tasks. Here’s a simple PowerShell script to assign a license:

$licenseOptions = New-Microsoft365LicenseOptions -AccountSkuId “enterprise:E3” -DisabledPlans “PROJECTWORKMANAGEMENT”, “SWAY”
Set-Microsoft365UserLicense -UserPrincipalName “user@domain.com” -LicenseOptions $licenseOptions

In this example, the New-Microsoft365LicenseOptions cmdlet creates a Microsoft365LicenseOptions object that you then pass to Set-Microsoft365UserLicense to assign the license to the user. The -DisabledPlans option allows you to disable individual services that are part of the overall license assignment.

Monitoring License Allocation

Monitoring license allocation involves keeping track of which licenses have been assigned, who they are assigned to, and whether they are being utilized. The Microsoft 365 admin center provides good visualization for license assignment and utilization.

For a more in-depth license monitoring and usage reporting, you can use built-in reports such as Active Users – License details or Microsoft 365 usage report. These reports give rich insights into how users are using Microsoft 365 services. You can identify which services are heavily used and which services are not being used.

Group-Based Licensing

Group-based licensing in Azure AD simplifies license assignments. With this feature, you can configure license assignments based on group membership. Once a license is assigned to a group, any user who is a member of the group automatically gets the license. To implement this, you need to utilize Azure AD Premium P1 or P2, because group-based licensing is a premium feature.

Conclusion

Efficiently managing and monitoring license allocations in Microsoft 365 is critical to maximize the return on your investment. It requires understanding the license offerings and using suitable methods for license assignments and monitoring. Remember to leverage PowerShell for automation and group-based licensing for efficiency. And, most importantly, monitor the usage of licenses to ensure they are being fully utilized.

Practice Test

True or False: Microsoft 365 licenses can be managed and monitored through the Microsoft 365 admin center.

• True
• False

Answer: True

Explanation: The Microsoft 365 admin center provides a centralized interface for managing and monitoring license allocations for users.

Which of the following can be used to automate the application of licenses in Microsoft 365?

• a) PowerShell
• b) Microsoft Graph
• c) Azure Active Directory
• d) All of the above

Answer: d) All of the above

Explanation: All of these technologies can be used to automate the application of licenses in Microsoft

True or False: It is not possible to assign multiple licenses to a single user in Microsoft

• True
• False

Answer: False

Explanation: Each user can be assigned multiple licenses, depending upon the requirements of the services and applications they need to use.

What is the major benefit of managing licenses through Microsoft 365 groups?

• a) Facilitates auto-renewal of licenses
• b) Facilitates bulk assignment
• c) Removes the need for individual license assignment
• d) Both b and c

Answer: d) Both b and c

Explanation: Microsoft 365 groups allows licenses to be assigned in bulk, removing the need for individual license assignment.

True or False: Azure Active Directory is required to manage and monitor Microsoft 365 license allocations.

• True
• False

Answer: True

Explanation: Azure Active Directory is a necessary tool for managing and monitoring Microsoft 365 license assignments and allocations.

Which of the following provides information about license usage in the organization?

• a) Microsoft 365 admin center
• b) Azure portal
• c) PowerShell
• d) Office for the web

Answer: a) Microsoft 365 admin center

Explanation: The Microsoft 365 admin center provides comprehensive information about license usage within the organization.

True or False: You can recover licenses from deleted users in Microsoft

• True
• False

Answer: True

Explanation: When a user is deleted, their license is freed up and can be reallocated to another user.

Single select: Which PowerShell cmdlet can be used to assign a license to a user?

• a) Set-MsolUser
• b) New-MsolUser
• c) Remove-MsolUser
• d) Add-MsolUser

Answer: a) Set-MsolUser

Explanation: The Set-MsolUser cmdlet is used to update a user record, including assignment of a license.

True or False: Identifying unassigned licenses is essential in license management.

• True
• False

Answer: True

Explanation: Identifying unassigned licenses is essential to ensure you are maximizing your investment in Microsoft

Single select: A user assigned with an E3 license can also be assigned with an E5 license.

• a) True
• b) False

Answer: a) True

Explanation: A user can be assigned with both an E3 and E5 licenses simultaneously.

True or False: Microsoft 365 does not provide notifications when licenses are set to expire soon.

• True
• False

Answer: False

Explanation: Microsoft 365 does alert administrators when licenses are near expiration total to ensure continued service access.

Single Select: You can view a report of active users and the licenses they’re assigned in which portal?

• a) Microsoft 365 admin center
• b) Azure portal
• c) Office 365 portal
• d) Dynamics 365 portal

Answer: a) Microsoft 365 admin center

Explanation: The Microsoft 365 admin center offers detailed reports of active users along with the licenses assigned to them.

True or False: All the features of a Microsoft 365 license are activated only when assigned to a user.

• True
• False

Answer: True

Explanation: A Microsoft 365 license’s features are only activated when the license is assigned to a user.

Single Select: The process of returning unassigned licenses back to Microsoft is known as:

• a) Licensing
• b) Decommissioning
• c) De-provisioning
• d) Repurchasing

Answer: c) De-provisioning

Explanation: When unassigned licenses are returned to Microsoft, the process is called de-provisioning.

True or False: Azure AD (Active Directory) provides licensing options per product (like Office 365, Dynamics CRM).

• True
• False

Answer: True

Explanation: Azure AD allows administrators to manage licenses for individual products which are part of the Microsoft portfolio.

Interview Questions

What is the primary tool for managing and monitoring Microsoft 365 license allocations?

The primary tool for managing and monitoring Microsoft 365 license assignments is the Microsoft 365 admin center.

How can you verify if a license has been properly assigned to a user from the Microsoft 365 admin center?

You can find and select the user under “Active Users,” then check under “Licenses and Apps.” It will list all the licenses assigned to the chosen user.

Which PowerShell command allows you to see all the licenses that are assigned in a Microsoft 365 organization?

The “Get-MsolUser -All | select UserPrincipalName, isLicensed” PowerShell command allows you to see all the licenses that are assigned in a Microsoft 365 organization.

Can the same Microsoft 365 license be assigned to more than one user?

No, each Microsoft 365 license can only be assigned to a single user.

Where can you purchase additional Microsoft 365 licenses for your organization?

Additional Microsoft 365 licenses can be purchased directly from the Microsoft 365 admin center.

How does auto-expanding licensing in Microsoft 365 work?

With auto-expanding licensing, new users on Microsoft 365 will automatically be assigned a license from the available pool, and licenses will be bought in bulk when the pool is depleted.

How can you check what services are assigned to a specific Microsoft 365 license?

You can get this information by checking the “Licenses and Apps” section of a specific user in the Microsoft 365 Admin Center.

How would you revoke a user’s Microsoft 365 license?

You can revoke a Microsoft 365 license by going to the user’s details in the admin center and then removing the license allocation under the “Licenses and Apps” section.

What happens if a user’s Microsoft 365 license is removed while they are still using a service?

If a Microsoft 365 license is removed from a user who is still using a service, they immediately lose access to the service.

Can you report on license usage in Microsoft 365?

Yes, it is possible to generate license usage reports using the reporting function in the Microsoft 365 Admin Center.

Where can you view information about your organization’s Microsoft 365 licenses?

Detailed information about your organization’s Microsoft 365 licenses can be viewed in the Billing -> Licenses section of the Microsoft 365 Admin Center.

Can you assign a Microsoft 365 license to a user through PowerShell?

Yes, you can use the “Set-MsolUserLicense -UserPrincipalName “username” -AddLicenses “licenseSKU” command to assign a license to a user through PowerShell.

Can you determine the number of available licenses in your Microsoft 365 organization through PowerShell?

Yes, you can use the “Get-MsolAccountSku” PowerShell command to determine the number of available licenses.

What PowerShell command would you use to list all unlicensed users in your organization?

The “Get-MsolUser -All -UnlicensedUsersOnly” PowerShell command will list all users in your organization who do not have a license.

What happens if an organization runs out of Microsoft 365 licenses?

If an organization runs out of Microsoft 365 licenses, no new users can be given a license until more are purchased or some are freed up by removing them from existing users.

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