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License Allocation Flow

License Allocation Flow is a single Sankey diagram that traces how every seat in your tenant moves from the total license pool, through assignment and user activity, into a classification, and finally to a recommended action. It turns the numbers scattered across the Licenses, Usage, and Recommendations pages into one left-to-right picture of where licenses go and where they leak — ideal for a stakeholder walkthrough or an export to share with finance.

How to Read the Diagram​

The flow is organized into five stages, read left to right. The width of each band is proportional to the number of seats moving through it, so the largest sources of waste are the widest ribbons.

Total Tenant​

The starting column — the complete count of Microsoft 365 licenses owned by the tenant. Every seat in the diagram originates here.

License Status​

Splits the total pool by whether each seat is assigned:

  • Assigned — Seats allocated to a user, shown with their share of the total
  • Unassigned — Seats sitting in the available pool, not yet allocated

User Activity​

Splits the assigned seats by recent sign-in and usage activity:

  • Active Users — Users with a recent sign-in (within the activity window)
  • Inactive Users — Users with no sign-in beyond the activity threshold
  • Disabled Accounts — Accounts disabled in Azure AD that still hold a license

License Classification​

Classifies each seat against what the user actually needs:

  • Optimal License — Seats that are right-sized for the user's consumption
  • Over-Licensed — Seats on a higher tier than the user's usage justifies
  • Additional classifications group seats that are unused or candidates for removal

The final column resolves each classified seat into the action the optimizer recommends — keep, downgrade, or reclaim — connecting the flow back to the per-user guidance on the Recommendations and Reclaim Opportunities pages.

Exporting the Flow​

Two export actions in the top-right corner let you share the diagram outside the platform:

  • Export HTML — Download the interactive diagram as a self-contained HTML file
  • Export PDF — Download a static PDF rendering for reports and presentations

Note: The flow reflects the most recently synced data for the selected company. Run a sync before exporting if you need the figures to be current.

Best Practices​

  • Use it for stakeholder reviews — The left-to-right narrative is easier to present to finance and leadership than raw tables; export to PDF for the deck.
  • Look for the widest leak ribbons — The thickest bands flowing into Inactive, Disabled, or Over-Licensed are where the largest savings sit; follow them to Reclaim Opportunities.
  • Read it after every sync — Because band widths are seat counts, the picture only matches reality when the underlying data is fresh.
  • Pair with the detail pages — Treat the flow as the map and the Recommendations and Licenses pages as the turn-by-turn directions.