---
sourceDocument: Australia Asset Management
sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/it-asset-management

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    - australia

ft:locale :

    - en-US

ft:publication_title :

    - Australia Asset Management

ft:clusterId :

    - itam

bundleId :

    - itam

workflow :

    - Technology


---

# Microsoft 365 SaaS License Management success guide

# Microsoft 365
SaaS License Management success guide {#ariaid-title1}

* Release version: Australia
* 
* Updated March 12, 2026
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 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](https://servicenow-prod.fluidtopics.net/1zveYkyMP1~QpVqE~RwUSw#integrating-with-microsoft365 "Integrating your ServiceNow instance with the Microsoft Dynamics 365 and Power Apps service enables you to track your software subscriptions and to reclaim unused licenses.").

Microsoft 365 is a subscription-based product and offers various features and functionalities. For more information, see [Microsoft 365 FAQs](https://www.microsoft.com/en-us/microsoft-365/microsoft-365-for-home-and-school-faq#coreui-heading-zmiprwo).

## Microsoft 365 licensing {#manage-o365-licenses__section_jlb_4bn_1xb}

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.
{#manage-o365-licenses__ul_uvc_zbn_1xb}

## Microsoft 365 saving opportunities {#manage-o365-licenses__section_ybd_kfc_2xb}

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](https://servicenow-prod.fluidtopics.net/VzmJn6AZkdE6_HLvvy1E3g "Identify savings opportunities and save money with the ServiceNow Software Asset Management application.").
Track subscription licenses and identify saving opportunities for Microsoft 365 by following these steps:

1. [Create a Microsoft 365 integration](https://servicenow-prod.fluidtopics.net/OMtFpHApPuBS7A~i4U~s0Q "Compare Microsoft 365 user subscriptions with installation usage data for a complete license compliance position.")
2. [Validate subscription, installation, and usage data](https://servicenow-prod.fluidtopics.net/qUL1jVHkNe8RdJfn4dC5Dw "Validate subscription, installation, and usage data before running a reconciliation for completeness and accuracy of your reports.")
3. [Import Microsoft 365 subscription entitlements](https://servicenow-prod.fluidtopics.net/z70CzX_xiJfG3xqfchuBGQ "Import Microsoft 365 subscription entitlements into the ServiceNow Software Asset Management application.")
4. [Identify savings opportunities](https://servicenow-prod.fluidtopics.net/VzmJn6AZkdE6_HLvvy1E3g "Identify savings opportunities and save money with the ServiceNow Software Asset Management application.")
5. [Microsoft 365 license optimization](https://servicenow-prod.fluidtopics.net/anByBVfHUeKsIB9U49JIRQ "Find Software Asset Management optimization recommendations for Microsoft 365 based on usage.")
{#manage-o365-licenses__ol_b3w_gh5_mxb}