Start with the licence, not the user
Every reclaimable seat is a licence that is paid for but not earning its keep. The business case starts with the SKU: what it costs per user per month, and how many seats are assigned. From there, activity data tells you which of those seats are actually used.
The three numbers finance wants
- Reclaimable monthly spend: inactive licensed users × SKU cost.
- Reclaimable annual spend: the monthly figure × 12, or the renewal window if it differs.
- Confidence: how many of those users are clearly inactive versus borderline. Be honest about the borderline group.
Handling multiple licences per user
A user can hold more than one licence (for example an E3 and an E5, or a base licence plus an add-on). Count each assigned SKU at its own price — but never double-count a bundle that already includes the lower tier.
Making it renewal-ready
- Use the current effective price, not the price from last year's invoice.
- State the activity window the analysis is based on.
- List the users behind the headline number so finance can spot-check.
- Propose a review cadence so the saving is re-validated, not assumed.
What not to claim
Do not claim a seat is reclaimable without activity evidence, and do not extrapolate a saving from a sample to the whole tenant. The number is only as defensible as the data behind it.