Right-size Dynamics 365 and Microsoft 365 licenses to the roles you actually use
A licensing optimization assessment compares the license capacity for security roles you allocated vs the capacity your users actually utilized. We recommend you run it once your ERP has stabilized and processes are well defined. So, when you renew, you base it on today's requirements instead of the roles granted during implementation from the past.
15%+typical licensing cost reduction when DAX assesses a mature environment.Results depend on your agreement, commitment terms, renewal dates, and role design.
A consulting service from DAX Software Solutions, a Microsoft Solutions Partner. There is nothing to download or install.
In short
- Roles are granted broadly during an initial ERP implementation, so nothing blocks testing and go-live and business processes can be executed at least as is to keep the business fully functional.
- A few years in, processes are well defined and most users exercise only part of the access they were given.
- In Dynamics 365 Finance and Supply Chain Management, assigned security roles determine the license a user needs, so unused roles keep users on costlier licenses.
- Comparing allocated with utilized capacity shows what to remove, right-size, or keep before your renewal.
Why do ERP systems end up over-licensed?
Licensing waste in an enterprise system is rarely a purchasing mistake. It builds up over the life of the implementation.
- Implementation
Roles are granted openly
During discovery, testing, and data migration, teams get broad access so nothing blocks progress toward go-live.
- Go-live and stabilization
Access is added, rarely removed
Temporary roles, cover arrangements, and workarounds stay in place while the business settles into the new system.
- Maturity
The paths to each outcome are defined
A few years in, processes and approvals are well established, and most users exercise only part of the access they were given.
- Optimization
Licenses follow the roles in use
Comparing allocated with utilized capacity shows which roles and licenses each job needs today, before your next renewal.
Allocated capacity vs. utilized capacity
Budget vs. actual tells you where the money went. Allocated vs. utilized capacity tells you whether you needed to spend it. DAX compares the two at every layer that drives your licensing cost.
| Layer | Allocated: what you pay for | Utilized: what people use | What the assessment checks |
|---|---|---|---|
| License seats | Licenses purchased and assigned | Users with recent sign-in activity | Unassigned seats, inactive users, and people who have left |
| Security roles | Roles assigned to each user, many of them during implementation | The roles a user’s work actually exercises | Roles kept from testing, data migration, or temporary cover |
| License type | The license the assigned roles require, often a full user license | The license the user’s actual activity requires | Users who fit Team Members or Operations – Activity once unused roles are removed |
| Applications | Base and attach licenses held | The applications the user actually works in | Attach licenses kept only because of an unused role |
| Microsoft 365 tiers and add-ons | Business Premium, Copilot, and other add-ons | Premium features and add-ons in regular use | Users whose work a lower tier covers |
When should you run a licensing optimization assessment?
The best time is after your system has matured and before your next renewal. These are the usual signs that allocated capacity has drifted above what you use:
- Your ERP system has been live for a few years and its processes are stable.
- Users still hold roles granted during implementation, testing, or temporary cover.
- People have changed jobs or left since go-live, but their access and licenses haven't changed.
- Most users are on full licenses, and no one has checked what their work requires.
- License quantities were set for go-live and have only grown since.
- Your Microsoft renewal is 90 to 120 days away.
How a licensing optimization assessment works
Measure first. Optimize second. Negotiate third. Each recommendation traces back to your own spend, role, and usage data.
- Phase 1
Discovery consultation
What are we licensing, and when does it renew?
What we do
- A 30-minute advisory consultation with a DAX licensing specialist
- Confirm the Dynamics 365 and Microsoft 365 products and modules in scope
- Note your agreement, renewal dates, and commitment terms
- Capture planned hiring, attrition, and projects that change future demand
What you get
A first view of your licensing picture and the savings opportunities worth mapping.
- Phase 2
Budget vs. actual spend baseline
What did we plan to spend, and what are we spending?
What we do
- Compare budgeted licensing spend with invoiced spend
- Calculate your current annualized run rate
- Separate committed spend from month-to-month spend
- Flag price changes and renewal exposure
What you get
A financial baseline and budget variance your finance team can check line by line.
- Phase 3
Allocated vs. utilized capacity audit
What did we allocate, and what are people actually using?
What we do
- Reconcile purchased, assigned, and active licenses
- Compare the security roles assigned to each user with the work their job involves
- Flag roles kept from implementation, testing, or temporary cover
- Review premium-feature adoption in Microsoft 365
What you get
A utilization picture by license, role, and user, showing where allocated capacity isn't creating value.
- Phase 4
Role and license right-sizing
Is every user on the right roles and the right license?
What we do
- Map each job to the roles and license it requires now that processes are defined
- Model the license change when unused roles are removed, such as full users who fit Team Members or Operations – Activity
- Flag the opposite case too: users whose license lacks something their role depends on
- Reclaim unused seats and identify duplicate capabilities
What you get
Recommendations by user and role: what to remove, reassign, or right-size.
- Phase 5
Renewal baseline and ongoing reviews
What quantity should we renew?
What we do
- Build the renewal quantity from requirements, not last year's count
- Compare commitment options and term lengths
- Keep technology, finance, and business teams aligned on the changes
- Run regular reviews as your environment evolves
What you get
Your Licensing Optimization Dashboard and a renewal baseline to negotiate from.
Where the savings come from
Remove unused roles
Take away roles granted for implementation, testing, or temporary cover that are no longer used.
Right-size license types
When a user's remaining roles need less, move them to the lighter license their work requires.
Reclaim seats
Release licenses assigned to inactive users and people who have left.
Rate optimization
Choose longer subscription commitments when they provide better pricing.
Volume flex
Increase or decrease subscription volumes as business requirements change.
Estimate what unused and oversized licenses cost you
Use figures from your Microsoft admin center and your latest invoice. The estimate covers two common gaps between allocated and utilized capacity: licenses nobody is using, and users on a higher tier than their work requires.
How this is calculated
Unused licenses = purchased − actively used. Reclaimable spend = unused × monthly cost × 12. Estimated wastage counts only the reduction in the number of licenses.
This is an educational estimate, not a quote or a guarantee of savings. Actual opportunities depend on your agreement type, commitment terms, renewal dates, and the role requirements we confirm during an assessment. Nothing you enter here is sent to DAX or stored.
Your Licensing Optimization Dashboard
A management-level view your CFO, CIO, and procurement team can all work from.
Dynamics 365 and Microsoft 365 license types: what to check before you renew
Licensing waste runs in two directions: users on a license whose rights a lighter one covers, and users on a license that lacks something their role depends on. Use this guide to see where a review is likely to find room to right-size.
Dynamics 365
| License type | What it covers | Right-sizing check |
|---|---|---|
| Full user | Users who need the full use rights of an application, such as Finance, Supply Chain Management, or Commerce. | Users who don't need full use rights may fit Team Members or Operations – Activity. |
| Base + attach | Each user holds one base license. Each additional application their security roles require is added as an attach license. | Confirm each user's base and attach licenses match what their security roles actually require. |
| Team Members | Read-only access to all Dynamics 365 data, plus basic capabilities for designated scenarios such as expense entry or updating contacts. | Confirm each user's tasks fall within Team Members use rights, and that customizations stay within its 15-table limit. |
| Operations – Activity | Users who need more than Team Members but not the use rights of a full user license. | A middle option for light users, instead of defaulting to a full license. |
| Device | Access granted to a shared device rather than to a named user. | Review shared devices where one device license may fit better than licensing each person. |
Microsoft 365 business plans
| Plan | What it includes | Right-sizing check |
|---|---|---|
| Business Basic | Web and mobile versions of Word, Excel, PowerPoint, and Outlook, business email, Teams, and 1 TB of cloud storage per user, for up to 300 users. | Users who never open desktop apps may not need a higher tier. |
| Business Standard | Adds desktop versions of Word, Excel, PowerPoint, and Outlook, plus webinars, Loop, and Clipchamp. | Are all Standard users working in desktop apps, or would web apps cover their work? |
| Business Premium | Adds advanced identity and access management, threat protection, device security, and data protection with Microsoft Entra ID, Intune, Defender, and Purview. | Mixing Premium and Standard by role can cost less than licensing everyone at Premium. |
| Apps for business | Desktop versions of Word, Excel, PowerPoint, and Outlook with 1 TB of OneDrive storage. Exchange email and Teams are not included. | Make sure it isn't stacked on users whose plan already includes the desktop apps. |
| Microsoft 365 Copilot | An optional add-on. Each user needs a qualifying Microsoft 365 plan as well. | Assign it to the users who will use it, and check that each one holds a qualifying plan. |
Microsoft can update its licensing guidance at any time without notice, and your agreement and the Product Terms are what bind. DAX checks your position against current terms during every assessment.
Licensing advice from a Microsoft Solutions Partner
The license a user needs follows from how roles and processes are designed. DAX implements and supports Dynamics 365 Finance, Supply Chain Management, and Business Central, so the role design and the licensing decision sit with the same team.
Microsoft Solutions Partner
Designated for Digital & App Innovation (Azure) and Business Applications.
20+ years in ERP and CRM
Over 20 years of industry experience in ERP and CRM.
Implementation through support
Dynamics 365 implementation, integration, and managed services, plus Microsoft 365 and Copilot licensing and rollout.
Global delivery
Headquartered in Woodland Hills, California, with teams in the US, India, and the ASEAN region.
Selected Dynamics 365 client engagements
These are Dynamics 365 implementation and support engagements. They are not licensing assessments.
Dynamics 365 Finance & Operations Implementation for a Cannabis Dispensary
Six legal entities, complex item-variant inventory, and strict government statutory regulations — implemented for a leading medical and recreational cannabis dispensary.
Read the case study →Dynamics 365 Finance & Operations Managed Support Service for a Leading Real Estate Company
By leveraging DAX's AMS, real estate companies can gain a competitive advantage by reducing IT costs and improving application performance.
Read the case study →Implementation of Dynamics 365 Business Central
Business Central has experienced rapid growth since its launch in 2018, with over 70,000 customers worldwide and a growing partner ecosystem.
Read the case study →Related services
Don't renew history.
Renew requirements.
The objective isn't simply to reduce licensing. It's to make sure your organization has:
Licensing optimization: frequently asked questions
What is the difference between allocated and utilized license capacity?
Allocated capacity is everything you pay for and assign: license seats, license types, and the security roles behind them. Utilized capacity is the part your users actually exercise in their day-to-day work. The gap between the two is the licensing you can remove, right-size, or stop renewing.
Why do ERP implementations end up with more roles and licenses than they need?
During an implementation, roles are granted broadly so discovery, testing, data migration, and go-live are never blocked. Once the system matures and the path to each business outcome is well defined, most users need only part of that access, but the roles, and the licenses they require, usually stay in place.
When is the right time for a licensing optimization assessment?
Once your ERP or enterprise system has been in production long enough for its processes to settle, typically a few years after go-live, and ideally 90 to 120 days before your next renewal, so there is time to measure usage, act on the findings, and negotiate from an accurate quantity.
How much can a licensing optimization assessment save?
In mature environments, DAX assessments typically reduce licensing costs by 15% or more. Your result depends on your agreement type, commitment terms, renewal dates, and how your roles are designed, which is why every recommendation is based on your own spend and usage data.
How do security roles affect Dynamics 365 license costs?
In Dynamics 365 Finance and Supply Chain Management, the license a user requires is determined by the security roles assigned to them. A user who keeps a role they no longer use can stay on a full user license when Team Members or Operations – Activity would cover their actual work.
Is this a software product or a download?
No. DAX provides professional licensing advisory and optimization services. Our consultants work with your team and the reports and figures you share. There is no software for you to download or install.
What happens during the 30-minute consultation?
A DAX licensing specialist reviews your licensing picture with you: the Microsoft products and modules you use, how roles are assigned, and your upcoming renewal.
What do we receive from an assessment?
Your Licensing Optimization Dashboard, optimization recommendations by user and role, and a renewal baseline built on requirements, not last year's assumptions.
Which products do you review?
Our assessments focus on Dynamics 365 and Microsoft 365 subscriptions and their add-ons, such as Microsoft 365 Copilot.
Request a Licensing Assessment Session
Tell us a little about your environment and a DAX licensing specialist will follow up to schedule a 30-minute advisory consultation.
- What capacity did we allocate, in licenses and roles?
- What capacity are we actually using?
- Which roles does each job still need?
- What did we budget, and what did we actually spend?
- What capacity will we realistically need next year?
Prefer to talk to us directly? Call +1-818-568-6460 or email contact@daxsws.com.