If you want to reduce software waste before a renewal, start by checking who still has access and who still uses the product. Microsoft Entra access reviews can remove unneeded group, app, and role access, while Microsoft 365 usage analytics can show whether assigned licenses are actually being used. Together, they give small businesses and IT teams a repeatable way to clean up access before paying for another term. Microsoft documents access reviews as a way to recertify access and remove it when users no longer need it, and usage analytics includes a licensing report that shows license assignment distribution by month access reviews usage analytics.
Why access cleanup should happen before renewal
Renewals often fail for a simple reason: the organization tracks seats, but not actual need. A person may still be assigned to a Microsoft 365 group, an enterprise app, or a role long after their project ends or their job changes. Microsoft says access reviews are meant to keep only the right people on groups, enterprise applications, and roles, and that excessive access can create audit findings and security risk access reviews overview. That same cleanup thinking applies to licensing. If access grants are stale, the related license assignment may be stale too.
Usage analytics helps you see the other side of the problem. Microsoft says the report set includes a licensing view with the count of users assigned each license type and the monthly assignment distribution, plus user-level detail for the last complete calendar month. It also notes that user-level detail can help with adoption and licensing decisions usage analytics. For renewals, that means you can compare what was assigned with what is actually active.
Build a simple review workflow
A practical workflow does not need to be complicated. It needs to be repeatable and owned.
List the apps, groups, and license pools tied to the renewal. Start with the resources that create the largest cost or risk. Microsoft Entra access reviews can target a group or an application connected to Microsoft Entra ID manage user access. If licenses are managed through a group, Microsoft also documents using groups to manage application licenses and recommends periodic access reviews so only authorized users stay in the group group-based licenses.
Choose the right reviewer. Microsoft supports self-review, manager review, group owners, or specified reviewers depending on what you are reviewing. For a small business, the manager or resource owner is often the most useful reviewer because they can answer whether the access still matches the job manage user access.
Set a cadence before the renewal date. Microsoft says access reviews can recur weekly, monthly, quarterly, or annually. For renewal cleanup, align the review to the contract cycle rather than the calendar year. If the renewal is annual, schedule the review several weeks before the procurement deadline so you have time to remove access and update counts access reviews overview.
Use reminders and apply the result. Microsoft Entra sends reviewers an email by default, can send reminders, and can automatically remind users halfway to the end date if they have not responded. After the review ends, you apply the changes and remove access that is no longer needed manage user access.
Cross-check with usage data. Use the licensing report in Microsoft 365 usage analytics to compare assigned licenses with actual use. Microsoft says the report shows license types, assignment counts, and monthly distribution. If a user still has access but has not been active in the last full calendar month, that is a candidate for investigation, not automatic removal usage analytics.
Decide what to remove, and what to keep
Not every unused-looking account should be removed immediately. Some people need access for irregular work, backup coverage, audits, or training. Microsoft explicitly notes that access reviews are useful when automation is not possible, when a group is used for a new purpose, or when business-critical data needs periodic reconfirmation access reviews overview.
That leads to an important tradeoff: usage data is useful, but it is not the same as business need. A low-activity user may still need a license for month-end reporting, shared mailbox support, or seasonal work. Use the review to ask the owner why access is still needed, not just whether the user logged in recently. For Microsoft 365, the usage analytics report only gives user-level detail for the last complete calendar month, so it is best for trend spotting, not for proving long-term lack of use usage analytics.
For Microsoft licensing, there is also a product-edition question. Microsoft states that access reviews require Microsoft Entra ID Governance for member users, and that some capabilities can work with Microsoft Entra ID P2; Microsoft Entra ID P1 is included in Microsoft 365 Business Premium, and Microsoft Entra ID P2 is included in some higher-tier plans and suites. Because Microsoft’s licensing page is detailed and sometimes plan-specific, verify the exact edition you own before building the workflow on a feature you may not have licensing fundamentals. If you manage licenses through groups, also confirm whether your current license supports the specific governance features you want to use.
Turn the review into a repeatable process
Once you complete one renewal cycle, capture the process so it can be reused.
- Define the owner. Someone in IT, identity, or the business unit should own the review schedule and the final decision log.
- Record the evidence. Keep the review date, reviewer, decision, and any business justification.
- Track follow-up actions. If access is removed, confirm the license assignment changed as expected.
- Measure the result. Compare assigned licenses before and after the cleanup, then compare that with active use in the next reporting month.
If you already use lifecycle or entitlement workflows, you can connect access reviews to license management so renewals are not a one-time scramble. Microsoft notes that entitlement management can use periodic access reviews to ensure only authorized users stay in the group that carries licenses group-based licenses. For many small organizations, that is enough structure to move from ad hoc cleanup to a standard monthly or quarterly process.
The practical rule is simple: review access first, then renew. If a user no longer needs the app, group, or role, remove the access before you renew the license. If the user still needs it, document why and keep the seat. That keeps the conversation grounded in business need instead of guesswork, and it gives IT a defensible process when renewal time comes around.