Microsoft is the publisher most likely to review your licensing. In Flexera's 2025 survey, half of organizations had been audited by Microsoft in the previous three years. Because Microsoft products span desktops, servers, SaaS and cloud, there are many places for gaps to appear, and many ways to prepare.
Two kinds of review
| Cooperative review | Formal audit | |
|---|---|---|
| How it starts | Invitation from Microsoft or a partner | Letter invoking the audit clause |
| Who performs it | Microsoft or a partner | Typically an independent audit firm |
| Tone | Advisory | Contractual |
| Outcome | Recommendations, often purchases | Formal findings and settlement |
Treat both seriously. Data shared in a cooperative review can still lead to commercial pressure.
Where gaps are most common
Microsoft's estate is broad, but compliance gaps cluster in a few areas. Desktop and SaaS subscriptions are usually the simplest; server software is where the money is.
Licensing depends on cores, hosts and mobility rights, and changes as clusters change.
Especially in test or development environments not covered by the right benefits.
For client access and desktop products.
Desktop applications outside the subscription, such as specialist tools.
Rights to use licenses in the cloud depend on specific terms.
Preparation checklist
Microsoft's changing agreements
Microsoft has been moving customers from traditional Enterprise Agreements to the Microsoft Customer Agreement for Enterprise (MCA-E) or the Cloud Solution Provider (CSP) program, with some cloud Enterprise Agreements no longer eligible for renewal on the old terms from 2025. Under MCA-E there is no annual true-up, so licensing must be managed continuously rather than reconciled once a year. See preparing for a Microsoft EA renewal.
How MI One helps
Frequently asked questions
How often does Microsoft audit?
Audit clauses typically limit formal audits to a set frequency. Check your agreement.
Does Microsoft 365 reduce audit risk?
For desktop applications, subscription licensing simplifies compliance. Server, virtualization and hybrid cloud licensing remain the main risk areas.
Should we accept a cooperative review?
It can be useful, but prepare as carefully as you would for an audit, and agree in writing how the data will be used.
Sources
- Flexera, 2025 State of ITAM Report press release, June 18, 2025. https://www.flexera.com/about-us/press-center/it-teams-losing-visibility-according-to-flexera-2025-state-of-itam-report
- US Cloud, "Microsoft Enterprise Agreement changes: navigating the 2025 cloud transition." https://www.uscloud.com/blog/microsoft-enterprise-agreement-changes-navigating-the-2025-cloud-transition/