Best Microsoft 365 License Management Tool for Enterprises

Is your organization’s “one-size-fits-all” Microsoft 365 licensing approach causing you to overpay for advanced features that your employees aren’t even using?

This often happens in many organizations due to a lack of visibility over their Microsoft 365 license usage and due to manual license management.

Moreover, managing Microsoft 365 licenses manually in a large enterprise like yours can be challenging, especially when you handle multiple Microsoft 365 license types, thousands of users, and strict compliance requirements. This often leads to compliance risks and wasted license spend.

To take control and simplify this Microsoft 365 license management process, you’ll need SaaS management software, which helps you track licenses effortlessly.

Our SaaS management platform, CloudFuze Manage, helps you take control of Microsoft 365 License Management with intelligent automation, cost optimization insights, and security features.

In this blog post, you’ll learn what Microsoft 365 licensing is, why companies need it, and how CloudFuze Manage helps in managing Microsoft 365 licenses.

Understanding Microsoft 365 Licensing

Microsoft 365 licenses are subscription-based plans that give you access to Microsoft’s productivity tools and services, such as Word, Excel, PowerPoint, Outlook, Teams, OneDrive, and SharePoint, along with compliance and security features.

Microsoft offers different types of licenses. The various Microsoft 365 license types for enterprise are:

1. Microsoft 365 Apps for Enterprise (basic services)

A basic plan that provides access to essential Microsoft desktop applications like Word, Excel, and PowerPoint, without advanced security or compliance features.

2. E3 (desktop applications plus advanced features)

A mid-tier plan that includes Microsoft desktop apps along with advanced AI, productivity, security, and compliance tools suitable for most enterprise needs.

3. E5 (analytics, security, and compliance)

This is the most comprehensive plan offering advanced analytics, enhanced security, and full compliance capabilities for highly regulated industries.

Note: Each plan includes different apps, storage, security features, and pricing plans. And the above-discussed pricings are as of Aug 2025. It may vary over time. Therefore, it’s recommended to refer to Microsoft’s official pricing page for updated prices.

Also, you can use Microsoft Entra ID (Microsoft’s native tool) to centralize identity and license management across Microsoft 365. It enables SSO, MFA, group-based licensing, and conditional access policies, ensuring compliance and security across your Microsoft 365 ecosystem. Integrating Entra ID helps your enterprises to streamline Microsoft 365 license assignments and reduce manual work.

Why You Need a Third-Party Microsoft 365 License Management Tool?

Microsoft 365 powers your organization with tools like Teams, SharePoint, and OneDrive. When you use Microsoft’s native tool, Entra ID, for license and identity management, you’ll lack in-depth cost-optimization analytics, control over multiple SaaS apps (other than M365), and total visibility over the license usage.
Also, you’ll face:

• Complexity in choosing and managing Microsoft 365 license types like Enterprise Apps, E3, and E5 for your business needs.
• Difficulties in overseeing hybrid environments with both on-premises and cloud users.
• Issues arising from over-licensing and under-utilization of Microsoft 365 licenses, which waste your SaaS budget.
• Compliance and audit challenges that increase the risk of SaaS-related security issues.

CloudFuze Manage automates user workflows, equips organizations with potential savings insights, and offers centralized license management, thereby helping organizations like yours stay secure and reduce subscription costs up to 30%.

The Problems You’ll Face Without Having a Dedicated SaaS Management Platform

If you manage your SaaS licenses manually,

• You’ll have no visibility into your SaaS apps and their license usage.
• Delayed manual employee onboarding and offboarding wastes the IT team’s valuable time and energy.
• You’ll lack the data needed for forecasting the future license needs for your team.
• SaaS security risks that arise due to improper license allocation across the departments.

Why CloudFuze Manage Is the Best Microsoft 365 Management Tool?

CloudFuze Manage is the best Microsoft 365 license management tool as it simplifies Microsoft 365 license management across your company. Here’s how it helps you:

1. Gain Full Visibility

You see all your SaaS apps, including Microsoft 365, in a single dashboard.

2. Optimize M365 Licenses Automatically

Our SaaS management app analyses user activity in the Microsoft 365 app for 60 days, and if the utilization is below a threshold, it recommends “Potential Savings” insights. You can either remove or reassign that M365 license accordingly.

For example, using CloudFuze’s SaaS Management platform, you can identify users who are only using a basic app in Microsoft 365 but have access to E3 or E5 licenses. Also, you can then move them from E5 or E3 to a basic license and save your Microsoft 365 license cost instantly.

3. Automate User Onboarding and Offboarding in Microsoft 365 Environment

When a newly hired employee joins the organisation, you can onboard them automatically to Microsoft 365 apps without any delays using CloudFuze Manage.

Also, when the same employee leaves the company, our tools help you revoke the allocated Microsoft 365 licenses access instantly. This saves your organization from SaaS security gaps and frees up unused Microsoft 365 permits.

4. Integrate with Entra ID

Our SaaS management platform works with Entra ID (Identity Provider) so you can apply group-based Microsoft 365 licensing and conditional access policies without strenuous effort.

5. Stay Audit-Ready

With CloudFuze Manage, you can download a detailed audit-ready report for all your SaaS apps (including Microsoft 365), which helps you stay ready for audits anytime.

Simplify Microsoft 365 License Management with CloudFuze Manage

Microsoft 365 is essential for your business, but managing these licenses doesn’t have to stress you out.

Our SaaS management platform, CloudFuze Manage, simplifies this Microsoft 365 license management, especially for large enterprises like yours. We help you automate, optimize, and secure your Microsoft 365 environment without writing a single line of code.

Further, you can reduce your hidden M365 subscription costs, integrate Entra ID for security, and streamline SaaS operations with CloudFuze Manage.

To know more about our platform, check out this video:

Get started with CloudFuze Manage for your Microsoft 365 license management today!

Contact us for a free product walkthrough now!

Frequently Asked Questions

1. What are the common mistakes enterprises make in Microsoft 365 license management?

Enterprises often over-purchase Microsoft 365 licenses, fail to monitor their usage, and ignore underutilized Microsoft 365 subscriptions. They’ll also experience delayed deprovisioning for offboarded employees and lack full visibility into subscribed license costs, leading to wasted Saas budgets and compliance risks.

2. Can CloudFuze Manage help you manage non-Microsoft SaaS apps like Zoom or Slack?

Yes. You can use our platform to manage licenses for Zoom, Slack, and 50+ major SaaS apps. We help enterprises to centralize SaaS license tracking, automate provisioning/deprovisioning, and provide cost-saving insights across all your SaaS platforms.

3. Does CloudFuze Manage offer fixed product-specific pricing or per-user pricing?

Our SaaS management platform uses a flexible per-user pricing model. You pay based on the number of users managed, ensuring scalability and cost-efficiency as your organization grows, without locking you into rigid, product-specific pricing plans.