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How to Read Microsoft Entra License Usage: Entitlements, P1/P2 Metrics, and Trends

By Freedom251 Team · · 4 min read

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Microsoft Entra License Usage shows tenant-level license entitlements alongside selected feature-usage measures. It helps administrators compare usage with licenses available, but its P1 and P2 headline metrics are representative indicators—not a complete measure of adoption across every feature. The page is different from Entra’s application sign-in reports, which are named Usage and insights.

What the License Usage page measures

In the Microsoft Entra admin center, License Usage brings together counts of Microsoft Entra ID P1, P2, and Suite entitlements and selected feature-usage measures for the tenant. The entitlement totals aggregate eligible products that include the relevant Entra ID tier. Microsoft lists Microsoft Entra ID P1, Microsoft Entra ID P2, Microsoft Entra Suite, Microsoft Entra ID Governance, Microsoft Entra Verified ID, Microsoft Entra Private Access, and Microsoft Entra Internet Access among the products included in these counts. Microsoft’s License Usage documentation describes the page as visibility into feature use across a tenant.

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The page is a comparison aid, not an invoice or a user-by-user assignment audit. Its entitlement section reports licenses purchased for the current month, while the feature-usage view reports the previous month. Keep those periods distinct when interpreting the displayed relationship.

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How to open the page and who can access it

  1. Open the Microsoft Entra admin center.
  2. Go to Billing > Licenses and open License Usage.

A paid Microsoft Entra license is required, and Microsoft documents the capability as available in public clouds. The least-privileged documented role is Reports Reader. Microsoft also lists Application Administrator, Cloud Application Administrator, Global Reader, Security Administrator, Security Reader, and Security Operator as roles that can access it. Consult Microsoft’s access requirements if you need to confirm permissions for a particular tenant.

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What the P1 and P2 headline metrics mean

Each tier’s headline count is a specific, representative user measure for the previous month—not a count of every feature used or every licensed user.

View Headline metric What it counts
Entra ID (P1) Conditional Access evaluation Unique users for whom at least one Conditional Access policy was evaluated during the measurement period.
ID Protection (P2) Risk-based Conditional Access evaluation Unique users for whom at least one risk-based Conditional Access policy was evaluated during the measurement period.

These definitions come from Microsoft’s description of the License Usage metrics. A low headline count alone does not establish that all other capabilities in the tier are unused, and a high count does not prove every feature is fully adopted.

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How to interpret used, unused, and spike amounts

The feature usage report in each tab compares the previous month’s usage with the entitlement count for each metric. Microsoft labels the portion attributed to active usage as Licenses Used, the remaining entitlement as Licenses Not Used, and use above the entitlement count as Usage Spike.

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  • Licenses Used: the entitlement portion corresponding to reported active use for that metric.
  • Licenses Not Used: the remaining entitlement in the comparison; it is not, by itself, proof that a license can be removed without checking assignments and requirements.
  • Usage Spike: reported use above the entitlement count. Treat it as a signal to investigate the measure and licensing context, not as a standalone explanation of why the count exceeded entitlements.

Because the page compares different reporting periods, a discrepancy may reflect changes in either usage or the entitlement denominator. License counts for other months can change with renewals, non-renewals, or additional purchases, according to Microsoft’s entitlement guidance. The page does not prescribe a universal licensing decision from any one percentage or category.

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How to use the six-month trend and active-versus-guest views

The Monthly usage patterns panel shows feature use across the previous six months and lets administrators switch between active and guest users. The chart compares usage with entitlement counts over time. Separating the user views can help distinguish internal usage from activity by external collaborators, but it does not determine which users need a license or what licensing action to take.

When a trend moves, check whether the entitlement count also changed before attributing the shift to user behavior. For a recent change, allow for the reporting delay: Microsoft says usage data may take up to three days to update. See the feature usage and update details for the reporting window and chart definitions.

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License Usage is not the Usage and insights sign-in report

The similar names refer to different reporting views. License Usage is about tenant entitlements and selected feature utilization. The separate Usage and insights reports are application-centric sign-in analytics, including authentication methods, service principal sign-ins, and application credential activity.

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To find those application reports, Microsoft documents the path as Entra ID > Monitoring & health > Usage & insights. Questions about top applications, failed sign-ins, sign-in errors, or an application’s last sign-in belong to that reporting area, not License Usage. See Microsoft’s Usage and insights report documentation for its scope and access details.

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What the Microsoft Graph beta resource does—and does not—establish

Microsoft Graph documents an azureADPremiumLicenseInsight resource for tenant P1/P2 license utilization. It is part of the Graph beta API. Microsoft warns that beta APIs may change and are not supported for production applications, so this resource should not be treated as a stable production integration. Read the resource documentation and its beta-status warning before considering it.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Conditional Accesslicense managementMicrosoft 365 administrationMicrosoft EntraMicrosoft Entra ID

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