Best Microsoft 365 license optimization tools (2026)
If you're trying to cut Microsoft 365 license waste, you have five realistic options — from doing it by hand to enterprise governance suites. Here's a straight comparison, including who each one is actually for. (Full disclosure: we make SeatScout. We've tried to be fair about where the others win.)
The options at a glance
| Tool | Price model | Runs | Dollar-quantified report | Best for |
|---|---|---|---|---|
| Microsoft 365 admin center | Free (included) | In portal | No — usage only, manual | Spot checks |
| Free PowerShell / Graph scripts | Free | Your tenant | No — raw CSV, DIY | Admins who like to assemble |
| AdminDroid | Free reports + paid tiers | SaaS / app | Partial | Deep, ongoing M365 reporting |
| CoreView | Enterprise / quote | SaaS platform | Yes (enterprise) | Large-tenant governance |
| SeatScout | Free / $49 / $129 one-time | Your tenant (read-only) | Yes — CFO-ready | SMBs & consultants who want a fast $ answer |
Competitor pricing varies and is set by each vendor — check their sites for current numbers. This table reflects model/positioning, not exact quotes.
Native Microsoft 365 admin center
Free and already in your tenant. It shows license counts and usage, but you do the analysis yourself and there's no dollar figure or remediation plan. Fine for a quick look; painful for a real audit.
Free PowerShell / Graph scripts
There are excellent community scripts that list inactive users and unused licenses. They're free and run in your tenant — but you assemble them, wrangle Graph permissions (and the Entra P1 sign-in-activity gotcha), and interpret raw CSVs. No pricing, no consolidated report. Great if you enjoy the plumbing.
AdminDroid
A strong, deep M365 reporting product with a large catalog of reports (including license/usage) and a free tier. If you want broad, ongoing reporting across many areas of M365 — not just licensing — it's a serious option. It's a heavier install than a single-purpose script.
CoreView
An enterprise governance and license-optimization platform built for large, complex tenants — delegated administration, policy, deep optimization. Quote-based and aimed at bigger organizations. Overkill (and over-budget) for an SMB or a one-off consultant audit, but powerful at scale.
SeatScout
Single-purpose and deliberately small: one read-only command, run inside your own tenant, that turns license data into a dollar-quantified, CFO-ready report — unused, inactive, disabled, unassigned, overlapping plans, and E5→E3 downgrade candidates — plus a remediation checklist. One-time price (free tier, $49 single-tenant, $129 for consultants with white-label + unlimited client tenants). Nothing leaves your tenant.
Where SeatScout isn't the right fit: if you want continuous, broad M365 reporting (AdminDroid) or enterprise-scale governance and delegated admin (CoreView), those are better tools. SeatScout wins when you want a fast, cheap, defensible dollar answer — for your tenant or a client's — without standing up a platform.
Want the dollar number in 5 minutes?
Run SeatScout read-only in your tenant and see exactly what's recoverable. Free tier, no platform to set up.
Get SeatScout →How to find wasted M365 licenses → · E5 vs E3 downgrade math →
SeatScout is independent and not affiliated with Microsoft, AdminDroid, or CoreView. Product names are trademarks of their respective owners.