Error 'you've reached your license limit'
The vendor says you have no free license left to assign. Usually a mix of leavers still 'on' and real growth.
Try this first
- 1Check in the vendor's admin portal: assigned vs purchased licenses.
- 2Does 'purchased' look right? Or are you paying for less than you actually want to assign?
- 3Walk the assigned list and detach inactive users: leavers, long-no-login, test accounts.
- 4Scale up to more licenses only if you really have more active users; vendors deliberately set threshold emails.
- 5Going forward: schedule quarterly reviews and assign that task to someone explicitly, else it creeps back.
When to bring us in
On big growth jumps or a vendor pushing a higher tier: ask for advice, sometimes another license model is cheaper.
See also
- New hire has an account but cannot reach Outlook or TeamsAn M365 account without a license is an empty shell. Assigning takes a few clicks, but picking the right plan pays off long-term.
- Employee left, but their email must be retainedPulling the license straight away starts a 30-day timer on the mailbox. The right route keeps access to the mail without paying for the license.
- We pay for licenses nobody usesBetween leavers, duplicate plans, and test accounts there is often 10-20% wasted license spend. A usage report exposes it fast.
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