From static profiling to continuous optimization

In the past, user profiling was often done once before a renewal or major contract negotiation. Consultants and IT teams would assess usage, create a few license profiles, and recommend a new license mix.

That approach worked, but it had limitations:

• Static snapshots: Profiling captured a moment in time, not the dynamic reality of a changing workforce.
• Manual effort: Collecting and interpreting usage data was slow and resource-heavy.
• License drift: Over time, new hires, role changes, and shifting workloads meant the profiles quickly went out of date.

In 2025, this model isn’t enough. With Microsoft continuously expanding license types and cloud services, organizations need a way to stay optimized all year round, not just at renewal time.

Profiling Microsoft 365 users effectively

User profiling means segmenting your workforce into categories based on actual usage and needs, then aligning licenses accordingly. Common profiles include:

• Knowledge workers: Require Office apps, Teams, SharePoint, and advanced collaboration tools. Often fit E3 or E5, but not always with every add-on.
• Frontline employees: Staff in retail, healthcare, or manufacturing who need lightweight access (Teams, email, limited apps). Best served with F1/F3 rather than full suites.
• Power users / IT / regulated roles: May require additional security, compliance, or device management add-ons.
• Device-based accounts: Kiosks, factory devices, or shared terminals, which should use device licenses rather than user licenses.

When applied to Azure, profiling can also reveal patterns: which teams or projects are driving the highest consumption, whether commitments are aligned to real demand, and where overprovisioning exists.

The goal

Eliminate unnecessary licenses, close compliance gaps, and create a sustainable, role-based licensing model.

Mixing license types strategically

Microsoft’s sales approach often pushes organizations to standardize on full suites. But smart profiling usually leads to a blended model, for example:

• 25% E5 users (legal, compliance, power users)
• 50% E3 users (knowledge workers)
• 20% F3 users (frontline workers)
• 5% device-based accounts

This kind of mix avoids the trap of paying for premium licenses across the board while still giving high-value roles the features they need. Profiling makes the difference between an oversimplified, costly licensing estate and one that is tailored, flexible, and cost-efficient.

Tools and strategies for ongoing optimization

One of the biggest mistakes organizations make is treating profiling as a one-time project. In reality, license needs shift constantly: employees change roles, projects start and end, and cloud service usage evolves.

That’s why ongoing optimization requires:

• Usage reporting: Tracking what licenses are used, and by whom.
• Adoption visibility: Spotting which features sit idle.
• License drift alerts: Identifying when employees hold licenses mismatched to their role.
• Scenario modeling: Testing how adjustments would affect costs and compliance.

How LicenseQ Hub Helps

This is where LicenseQ Hub adds value. It’s our AI-powered platform designed to keep organizations continuously right-sized by using real usage data across Microsoft 365, Azure and Dynamics 365.

With LicenseQ Hub, organizations can:

• Automatically build user profiles based on actual consumption, not assumptions.
• Detect misalignments instantly (e.g., E5 users who only use workloads available in E3, or frontline staff with licenses they don’t need).
• Identify under-licensed features before they become compliance issues.
• Simulate licensing scenarios (What if 30% of E3 users moved to F3?) to model costs and compliance outcomes.
• Leverage AI-driven forecasts to anticipate future license needs based on historical usage trends.

Instead of discovering waste at renewal time, LicenseQ Hub provides continuous visibility. Now your IT, procurement and finance departments can always know licenses are aligned to real business needs.

Client Case Study: Continuous Profiling with LicenseQ Hub

A European municipality recently engaged LicenseQ Hub ahead of a major Microsoft renewal. Microsoft had proposed upgrading all employees to full suites, citing simplification.

Profiling Analysis

Our analysis uncovered critical inefficiencies:

• Over-licensed staff: Hundreds of frontline employees were carrying unnecessary E3 licenses.
• Overlaps: Multiple subscriptions were assigned to the same users.
• Misuse: Device-based accounts were incorrectly consuming user licenses.

We restructured their estate into four clear profiles:

• Knowledge workers (E3)
• Compliance-heavy staff (E5)
• Frontline staff (F3)
• Shared devices

Immediate Results

• €1.2 million in annual savings.
• A governance process ensuring new hires are automatically assigned to the right license profile from day one.

Ongoing Results with LicenseQ Hub

Unlike a traditional consultancy engagement, the process didn’t stop after the renewal. With LicenseQ Hub, this municipality benefits from continuous license optimization:

• Live monitoring: Dormant or misaligned assignments are flagged immediately, not months later.
• Automated alerts: When staff roles change, Hub identifies when license profiles need adjusting.
• Quarterly reporting: Both IT and finance receive clear reports showing where spend is optimized and where risks might be emerging.

A Continuous Model

Instead of sliding back into licensing drift — where over-licensing creeps back in between renewals — the municipality now runs a living licensing model. With LicenseQ Hub, their Microsoft environment stays right-sized every month, not just during negotiations.

In their words:
“LicenseQ didn’t just help us save money at renewal — they gave us a way to keep control over our Microsoft environment, continuously.” – IT Manager

Closing Thoughts

In 2020, user profiling was about avoiding unnecessary costs. In 2025, it’s about ongoing optimization powered by AI. With Microsoft constantly expanding services and license types, organizations can no longer afford static, one-off profiling exercises.

The key is continuous visibility: making sure every license matches the role, usage, and compliance requirements of the employee or device it’s assigned to.

At LicenseQ, we help enterprises profile smarter with the insights of LicenseQ Hub turning optimization from a one-off project into a continuous process. Get in touch today to schedule a free demo.