Dynamics 365 User License Compliance: A Struggle that Benefits Microsoft

• ​Dynamics 365 has limited built-in controls to help maintain user license compliance, leaving organizations at risk.
• Microsoft-provided compliance tools provide incomplete analysis and recommend the highest and most expensive licensing options.
• Customers need to understand how the tools work because they are weapons that Microsoft uses in audits and contract renewals.
• Educating admins on licensing rules and establishing periodic reviews are key to reducing compliance risk and controlling cost.

Microsoft licenses Dynamics 365 users for individual applications, processes, and data; however, the service does not always prevent users from exceeding the limits of their assigned license. The service’s inability to self-regulate license compliance places organizations at greater risk, especially during audits and during contract renewals when calculating user license requirements is critical. The problem is compounded in organizations that modify security roles or customize applications to meet internal requirements. Microsoft provides basic compliance tools, but their results benefit Microsoft more than the customer, and there is no single tool to generate a list of all required user licenses. Organizations must adopt additional manual processes to reconcile user licensing, and many end up purchasing third-party solutions.