Post-Close Licensing Assessment Finds 838+ Excess Licenses
A global industrial manufacturer was assessed for Microsoft licensing alignment across their environment. The company was operating on a combination of annual and month-to-month subscriptions with a major renewal approaching.
The assumption going in was that the company might be under-licensed. The reality was the opposite: 838+ excess licenses across six major product categories.
The Situation
Altaris performed a seat-level reconciliation of license entitlements against actual deployment across more than twenty Microsoft products. After adjusting consumption data to exclude service accounts, disabled organizational units, and inactive users, the results showed material over-licensing across several major product lines:
| Product | Licensed | Deployed | Excess |
|---|---|---|---|
| Productivity suite | 1,338 | 1,041 | 297 |
| Desktop OS | 1,332 | 1,041 | 291 |
| Bundled suite | 598 | 348 | 250 |
| CRM | 89 | 67 | 22 |
| Project management | 81 | 57 | 24 |
| Diagramming | 75 | 51 | 24 |
The company was paying for hundreds of licenses that weren't assigned to active users.
Additional findings revealed a mix of annual and month-to-month subscriptions that could be optimized through commitment restructuring, and the purchasing power warranted evaluating a transition to a more cost-effective agreement type for better per-seat pricing.
Why This Matters in M&A
Licensing over-spend is the mirror image of under-licensing — and it matters just as much in a deal.
When a buyer acquires a company that's significantly over-licensed, there are two implications.
First, it's an immediate cost savings opportunity. Eliminating excess licenses and right-sizing the subscription footprint can produce six-figure annual savings that improve the acquired entity's operating margin from day one. For a buyer running a post-close value creation playbook, this is a quick win.
Second, it's a signal that the target's IT governance may have gaps. A company paying for hundreds of licenses nobody is using hasn't been actively managing their software estate. That same lack of oversight could mean other licensing issues — in areas where the gap goes the other direction.
An assessment that only looks for under-licensing misses half the picture. The buyer needs to know both: where the risk is and where the savings are.
The Takeaway
Not every licensing assessment uncovers liability. Sometimes it uncovers opportunity. In this case, the assessment identified hundreds of excess licenses across major Microsoft products, creating an immediate path to recurring cost reduction.
For acquirers evaluating targets with large Microsoft footprints, a licensing assessment isn't just about avoiding penalties. It's about understanding the true cost structure of the business — and knowing where to find value the seller left on the table.
Related Case Studies
$575K Gap Found Before Close — Pre-close due diligence turned a hidden liability into a negotiating lever worth $733K.
62% Under-Reporting Exposed: $2.7M in Total SPLA Licensing Exposure — A managed hosting provider was reporting barely a third of its actual Microsoft licensing obligation.
A licensing assessment finds risk and savings. Often in the same environment. Contact us or reach us directly at [email protected].
