Microsoft 365 SaaS License Management success guide

  • Release version: Australia
  • Updated March 12, 2026
  • 1 minute to read

    • Track Microsoft 365 SaaS subscription licenses in the ServiceNow Software Asset Management application and proactively identify saving opportunities for Microsoft 365.

    Note:
    Microsoft Dynamics 365 and Power Apps haven’t been covered in this guide. For details, see Integrating with Microsoft Dynamics 365 and Power Apps.

    Microsoft 365 is a subscription-based product and offers various features and functionalities. For more information, see Microsoft 365 FAQs.

    Microsoft 365 licensing

    Microsoft 365 is a hybrid Software as a Service (SaaS) application. Licensing of Microsoft 365 depends on subscription information from the cloud and from installations on endpoint devices, such as laptops, workstations, or virtual systems.

    You must gather the following information and reconcile for licensing:
    • Microsoft 365 subscription users from the Microsoft Cloud.
    • Local installation information from relevant endpoint devices with enough detail for correctly aligning installations to user subscriptions in the Microsoft Cloud.

    Microsoft 365 saving opportunities

    You can collect and analyze data from multiple sources for identifying Microsoft 365 saving opportunities. The Software Asset Management application automates this process with the base system integrations to the cloud and on-premise inventory tools. This installation data is normalized with the subscription profiles, which helps in importing Microsoft 365 or Office 365 entitlements easily.

    Reconciliation automatically produces license compliance positions based on attributes and calculations included in the Software Asset Management publisher pack for Microsoft. For more information, see Identify savings opportunities.

    Track subscription licenses and identify saving opportunities for Microsoft 365 by following these steps:
    1. Create a Microsoft 365 integration
    2. Validate subscription, installation, and usage data
    3. Import Microsoft 365 subscription entitlements
    4. Identify savings opportunities
    5. Microsoft 365 license optimization