Managing User Licenses with the Microsoft 365 Admin Center
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Microsoft 365 offers Enterprise Mobility & Security (EMS), Windows 10, and Office 365 to enhance business productivity and security. Because Microsoft 365 offers a variety of services and features, not everything is in the same place. Therefore, we need to navigate within different portals, and familiarity with “what is where” gets really important over time.

In this course, we will have a look at some of the most common tasks to be performed by Microsoft 365 administrators related to Azure AD identities, how to secure your environment by assigning the correct permissions to your users, and how to reduce administrative overhead. We’ll do various tasks in different ways by using the Microsoft 365 Admin Center, the Azure portal, and even use Windows PowerShell for automating bulk actions.

Choosing the right type of identity for your current infrastructure is the first step for any successful Microsoft 365 deployment.

Learning Objectives

  • Plan Azure AD Identities
  • Manage Users and Groups
  • Manage User Access with Access Reviews
  • Manage Passwords and Password Policies
  • Implement Self-Service Password Reset (SSPR)
  • Manage Product Licenses

Intended Audience

  • People preparing for Microsoft’s MS-100 exam
  • Microsoft 365 Administrators


  • Experience with Microsoft 365
  • Experience with the Azure portal
  • Experience with PowerShell

Licensing users is the first step in allowing them access to apps and services. From the Microsoft 365 admin center, you can license a single user or multiple users. 

First, let's have a look at how we can license a single user. You can select a user, and click on Manage Project Licenses, or you can simply click on the user. Go to licenses and apps, after you selected a usage location you can expand your licenses, and here you'll see all your subscriptions available for your tenant

If we select the Office 365 Enterprise E5 all the plans will be assigned to the user. And you can see that by expanding the apps menu, and if we scroll down we can see that all the plans have been assigned. It's also from there that you can remove a few plans if you don't want your users to have access to them. 

So let's remove a few plans, and then click on save changes. Click on cancel to close the page, and let's have a look at licensing multiple users. Here I have two users, James and Mary, who are currently licensed for some services. And I can change their subscription, or plans that they have access to, by selecting both. And let's use the manage project licenses this time. And because they are already licensed, we are presented with two options, do we want to replace the existing licenses that they have or do we want to add some licenses. For this demonstration, let's click the replace licenses. Click next, and as you can see if you do not have any more licenses available, then you will not be able to assign your subscription. Let's choose Enterprise Mobility, and toggle the setting to on. 

When the menu expands, you can select exactly what services in a granular way, you want to assign to the users. Let's remove some services. Scroll down, and click on replace. Remember that you're doing that for multiple users, so whatever you choose will be assigned or removed for those two users. Once you're finished, click on close and the replacement has now been done. 

If you wish to remove a license for a user, select a user, go to manage project licenses and you can have two possibilities here. Either you go to the apps and you remove one by one each service, or just go to licenses and uncheck the subscription. Click on save changes and cancel to close the page. Now the user is unlicensed.

About the Author

Veronique is a SharePoint and Office 365 consultant for an IT company based in Glasgow, UK. She loves photography, the outdoors, and long walks with her two dogs! You can follow Veronique on Twitter @veronicageek or read her blog at