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Office 365 License Consumption

We have discovered an issue with the way licenses are consumed using the Office 365 connector. The Connector downloads and creates the licenses showing consumption. Since the licenses are Named User, the option "Allocations consume license entitlements" is checked under User rights & rules. The problem is when people have servers or multiple computers assigned to them (Department heads, system administrators, etc.) they consume multiple licenses because they can only have it installed on up to 5 systems per license. I have one system administrator who is consuming 29 Visio Professional licenses because of all of the PCs and Servers assigned to him. For Visio alone this issue us consuming 120 extra licenses for people with multiple systems assigned. They do not have Visio installed on all of these systems. I've verified. 

How do other companies handle this?

I would think there would be a way to consume on allocated system that have it installed, and still allocate if it isn't installed on a system, but not count everything that doesn't have it installed.

Erick Hacking, CSAM, CHAMP
IT Software Asset Manager, Lead Sr.
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Re: Office 365 License Consumption

@EHacking 

I've seen internal communication related to your support case raised and that a call will be arranged with Flexera professional services to discuss recommendations. Please update the community on how you decided to implement the processes when it has been decided upon as others may benefit from it.

Thanks,

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Re: Office 365 License Consumption

@EHacking 

Could you please share any recommendations from your side on this, if anything has decided ?

Regards

Rajesh Ponnala

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Re: Office 365 License Consumption

Nothing yet. We are still discussing this. We are not in agreement as to what the actual licensing should be. I've read the EULA and understand it one way, and some at Flexera understand it another way.
Erick Hacking, CSAM, CHAMP
IT Software Asset Manager, Lead Sr.
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Re: Office 365 License Consumption

An update from a conversation I had with support today.

The Office 365 connector creates the licenses from a SKU that Flexera created for this purpose. When the support person sets up a license using that SKU, it reacts the same way as I have described.

We did determine that the Project SKU is incorrectly set up because it incorrectly marks "One entitlement allows an end-user to access unlimited installations" under the "Right of multiple use" section. It should allow for installation on up to five devices.

According to information directly from Microsoft:

https://products.office.com/en-us/visio/visio-plan-2?activetab=pivot%3aoverviewtab
--Get Visio and the always up-to-date Visio desktop app, for use on up to 5 PCs, and 2 GB of OneDrive for Business cloud storage.
https://products.office.com/en-us/project/project-plan-3?activetab=pivot%3aoverviewtab
--Each subscription license allows for up to five concurrent installations of the Project Online desktop app

I continue to argue that the box "Allocations consume license entitlements" should not be marked because it should only count if the application is installed on a system, and not count all systems assigned to that user.

Erick Hacking, CSAM, CHAMP
IT Software Asset Manager, Lead Sr.