--- sourceDocument: Yokohama IT Asset Management sourceDocumentLink: https://www.servicenow.com/docs/r/yokohama/it-asset-management Release : - yokohama ft:locale : - en-US ft:publication_title : - Yokohama IT Asset Management ft:clusterId : - itam bundleId : - itam workflow : - Technology --- # Integrating with Microsoft 365 # Integrating with Microsoft 365 {#ariaid-title1} Release version: Yokohama Updated January 30, 2025 ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 6 minutes to read Summarize ![AI sparkle icon](https://servicenow.com/docs/portal-asset/ai-sparkle-icon) Summarized using AI This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete. ## Summary of Integrating with Microsoft 365 Integrating the ServiceNow Software Asset Management (SAM) application with Microsoft 365 enables you to track software subscriptions and usage, ensuring license compliance and identifying optimization opportunities. This integration helps minimize security risks by requiring only minimal, necessary Microsoft 365 user or API permissions. It supports managing licenses effectively across multiple tenants and government cloud environments. Show full answer Show less ## Setup and Configuration * **Prerequisites:** Install key plugins including *Software Asset Management Professional for Microsoft* , *ITAM Health Check* , *Software Asset Management - SaaS License Management* , and *Microsoft Entra ID Spoke* (requires Integration Hub subscription). * **Register Application:** Register an application in Microsoft Entra ID for subscription retrieval from the Microsoft 365 admin center. * **Configure Power BI Usage:** Enable service principal authentication for Power BI APIs to optimize licenses such as downgrading or removing low-usage subscriptions. * **Disable Anonymous User Information:** Disable anonymization in Microsoft 365 Admin Center to allow accurate user license tracking. * **Create Microsoft 365 Integration Profile:** Import subscription and usage data for compliance and optimization. Support is available for government plans and products without direct API access by uploading activity reports. * **Set up Reclamation and User Resolution Rules:** Automate license reclamation based on usage and map Microsoft 365 users to ServiceNow users for accurate license management. * **Run Scheduled Jobs:** Automate data pulls or run on demand to keep license and usage data current. * **Configure Software Models and Entitlements:** Automatically generate models based on subscriptions, including suite components and downgrade rights, and add entitlements based on Publisher Part Number to avoid duplicates. * **Manage Add-on and Step-Up Licenses:** Associate add-ons and handle various Microsoft 365 subscription types to maintain accurate license inventory. * **Set up License Reservations:** Create reserve entitlements for Microsoft online services to supplement existing subscriptions. ## Verification and Management * **Verify Subscription Pulls:** Confirm all subscriptions are imported correctly with your Microsoft 365 administrator. * **Health Checks:** Use the ITAM Health Check dashboard to validate Microsoft 365 configurations and troubleshoot issues. * **Verify Usage Data:** Ensure usage data is accurately pulled to identify inactive licenses and optimization candidates. * **Create Success Goals:** Track your Microsoft 365 license management progress and improvements. * **Add to Published Product List:** Add Microsoft 365 products to improve visibility and simplify the Software Asset Workspace. * **Run Reconciliation:** Perform reconciliation specifically for Microsoft to verify license consumption aligns with configurations. * **Check License Position Reports:** Review compliance status across Microsoft 365 and associated products. * **Act on Unlicensed Subscriptions and Optimization:** Identify unlicensed usage and leverage SAM analytics to reclaim or optimize licenses effectively. ## Benefits for ServiceNow Customers This integration empowers ServiceNow customers to maintain accurate Microsoft 365 license compliance, reduce unnecessary license costs through optimization and reclamation, and ensure security by enforcing minimal permission access. It streamlines managing multiple tenants and government cloud environments and supports comprehensive reporting and automation, thereby enhancing overall software asset management efficiency. Integrating the Software Asset Management application with the Microsoft 365 service enables you to track your software subscriptions and software usage to determine license compliance and act on optimization opportunities. Important: Minimize security risks and protect information by granting access only to the necessary user or API permissions.{#integrate-with-microsoft__table_box__entry__3} | Process | Required user role in the Microsoft 365 application | Authentication scopes | |-|-|-| | Download subscriptions | Application developer | * User.Read.All * Organization.Read.All {#integrate-with-microsoft__ul_hhv_ypl_qbc} | | Pull user activity | * Power platform administrator * Application developer {#integrate-with-microsoft__ul_n43_gbk_zbc} | Reports.Read.All | | Reclaim subscriptions | Application developer | * GroupMember.ReadWrite.All * LicenseAssignment.ReadWrite.All {#integrate-with-microsoft__ul_egn_bzw_wcc} | [Table 1. Minimal user permissions] {#integrate-with-microsoft__box-title} ## Setting up Microsoft 365 integration {#integrate-with-microsoft__section_gdf_jy1_tcc} Manage Microsoft 365 license compliance and optimization by performing the following steps: * Prerequisites Before you begin with Microsoft 365 integration, confirm that all prerequisites are met. 1. [Install Software Asset Management Professional for Microsoft](https://www.servicenow.com/docs/rVlsGv0mlYEBvqZ88iny8Q "The Software Asset Management publisher pack for Microsoft helps you track your license compliance position using Microsoft licensing metrics.") Install the Software Asset Management Professional for Microsoft (com.snc.samp.microsoft) plugin to access the Microsoft Publisher pack features in the Software Asset Management application. 2. [Install ITAM Health Check application](https://www.servicenow.com/docs/r_mI~jzwiFgEztXaLwFXbA "Use the Health check dashboard to view the results of the health scan that is performed on the configurations in your Software Asset Management application.") Install the ITAM Health Check application to get an overview of your Software Asset Management configurations and receive recommendations for correcting errors. 3. [Install Software Asset Management - SaaS License Management plugin](https://www.servicenow.com/docs/RP~t713q8QFqVTpJS_PmyA "Request the Software Asset Management - SaaS License Management plugin (sn_sam_saas_int) so that you can create and manage integrations with your SaaS and Single Sign-on (SSO) applications. You can use these integrations to track license usage and to reclaim unused licenses.") Install the Software Asset Management - SaaS License Management plugin (com.sn_sam_saas_int) to create and manage integrations with your SaaS and Single Sign-On (SSO) applications. These integrations enable you to track license usage and reclaim unused licenses effectively. 4. [Install Microsoft Entra ID Spoke](https://www.servicenow.com/docs/access?context=microsoft-azure-ad-spoke&version=yokohama&pubname=yokohama-integrate-applications&ft:locale=en-US) Install the Microsoft Entra ID spoke (formerly Azure AD spoke) to enable automated integration with the Microsoft 365 Admin Center for license removal and other scenarios. An Integration Hub subscription is required for this spoke. For more information about Integration Hub, see [Integration Hub](https://www.servicenow.com/docs/access?context=integrationhub&version=yokohama&pubname=yokohama-integrate-applications&ft:locale=en-US). 5. [Receive latest updates from Software Asset Management Content Service](https://www.servicenow.com/docs/mQP6G811SwWNdizf_UfEew "Opt in to the Software Asset Management Content Service to share unnormalized software installation data from your organization with ServiceNow to improve the normalization process.") Update your instance with new content weekly on a scheduled basis through Software Asset Management Content Service. The Software Asset Management application provides automated content to simplify the normalization of software installations and subscriptions, offering enriched data such as lifecycle information, downgrade rights, and suite definitions. This data is essential for maintaining accurate license compliance and optimization. 6. [Create a success goal](https://www.servicenow.com/docs/~Pa3Y~CRgnxMXffGeuyLEQ "Create success goals to track the success of the Software Asset Management application in your instance.") Create a success goal to track the success of Microsoft 365 configuration setup on the Software Asset Management application. {#integrate-with-microsoft__ol_qdr_sy1_tcc} * Software Asset Management configurations Configure your Software Asset Management (SAM) application, which includes setting up user accounts, managing licenses, and confirming compliance with Microsoft's software usage policies. 1. [Register application on Microsoft Entra ID](https://www.servicenow.com/docs/UqIpL~zoOGsY7PhRujAuyA "Register an application through the Microsoft Entra ID portal.") Register an application on Microsoft Entra ID (formerly Azure Active Directory) that enables the retrieval of all subscriptions provisioned in the Microsoft 365 admin center. 2. [Configure Power BI usage to get usage information](https://www.servicenow.com/docs/WDKIkwbiG6kDQvIJryBw_A "Grant your application access to Power BI service content and APIs by enabling service principal authentication for Power BI read-only APIs. Power BI service content and APIs help optimize your Microsoft 365 subscriptions, such as by downgrading subscriptions from Office 365 E5 to Office 365 E3.") Enable service principal authentication for Power BI read-only APIs to enable your application access to Power BI service content and APIs. This access helps optimize your Microsoft 365 subscriptions, such as downgrading subscriptions from Office 365 E5 to Office 365 E3 or removing Power BI low-usage subscriptions​. 3. [Prevent anonymous user information](https://www.servicenow.com/docs/f1fHWToPpcFJ6RTKamHV~g "Avoid anonymous user information in Microsoft 365 reports on activity to be imported to ServiceNow.") By default, Microsoft hides the user names of subscribers in the Microsoft 365 Admin Center, preventing ServiceNow from accurately tracking Microsoft 365 license usage. To resolve this issue, disable this anonymization feature in the Microsoft 365 Admin Center. 4. [Set up a Microsoft 365 integration profile](https://www.servicenow.com/docs/3Mr5y3jj9en6XJ2HGWoKyQ "Create an integration profile to track software subscriptions and optimize stale licenses for the Microsoft 365 service.") Create a Microsoft 365 integration profile in the Software Asset Management application to import user subscription data, determine license compliance, and identify optimization opportunities. If you manage multiple tenants, create a separate integration profile for each. 5. [Configure the integration profile to get data for government customers](https://www.servicenow.com/docs/S4kywp4QZFa0Yah7IlfTHw "Change the endpoints of the REST message and OAuth application on your ServiceNow subscription profile so that you can use your subscriptions.") The ServiceNow AI Platform supports Microsoft 365 Government plans, offering all the features of Microsoft 365 services within a government-exclusive cloud. This setup helps organizations comply with the U.S. security and compliance standards. 6. [Configure the integration profile to get usage for Microsoft 365 Copilot, Visio Online, and Project Online](https://www.servicenow.com/docs/RVktCXxRrO9SJLGMgBv1Cg "Monitor the usage activity data for Microsoft 365 Copilot, Visio Online, and Project Online to identify reclamation candidates based on low usage.") Microsoft doesn't provide APIs to get usage directly for Microsoft 365 subscription products, such as Microsoft Visio, Microsoft Project, and Microsoft Copilot. However, you can download activity reports for these products from the Microsoft 365 admin center. Microsoft 365 administrators can download these reports and SAM Admin can attach them unmodified to the integration profile in the Software Asset Management application. The scheduled jobs within ServiceNow will then process these reports and identify reclamation candidates if the usage is low. 7. [Configure reclamation rules](https://www.servicenow.com/docs/GNxfuFZjHxagOBJEcFk2aQ "Use reclamation rules to cancel user subscriptions that have limited to no activity.") The Software Asset Management application automatically provides base system reclamation rules when you create an integration profile for Microsoft 365. For more information, see [Reclamation rules for Microsoft 365 integration](https://www.servicenow.com/docs/ZeaTe3DDXF1hXFrCJkYN3A "Reclamation rules for Microsoft 365 integration sets the minimum usage threshold for a subscription. If a subscription remains inactive for a specified period, Software Asset Management marks the subscription as a potential reclamation candidate."). 8. [Configure user resolution rules](https://www.servicenow.com/docs/W0WBIBFqeOLU8UwtqBLHjg "If the User field in the Software Subscription [samp_sw_subscription] table is empty, map the field with an associated user in the User [sys_user] table within ServiceNow AI Platform.") Resolve or match the Microsoft 365 admin center user to the ServiceNow user (sys_user) to determine the right license compliance and provide correct optimization recommendations. Important: Remember that sometimes licenses are assigned to non-human users such as email accounts. In these instances, you can skip the user resolution process as it isn't required. 9. [Run scheduled jobs](https://www.servicenow.com/docs/hbAxJFBYU__WVo~AFHdjRQ "Your Microsoft 365 integration profile is set to fetch subscription and usage information automatically from the Microsoft 365 Admin Center on a schedule. If needed, you can also manually run the following scheduled jobs to get this information. Each job must be complete before starting the next one.") The Microsoft 365 integration profile you created automatically gets subscription and usage information from the Microsoft 365 admin center on a scheduled basis. You can now run these jobs on demand and verify they're completed successfully. 10. [Set up software models and entitlements](https://www.servicenow.com/docs/eePzH8c71Dckuq3nGOssaQ "Create software subscriptions for SaaS and SSO applications for users in the Software Asset Workspace.") The Software Asset Management application integrates with the Microsoft 365 admin center to generate software models automatically based on assigned subscriptions. These models include suite components, downgrades, and lifecycle details to confirm compliance and optimize licensing. For these automatically created software models, remember to add your entitlements. If you have previously set up entitlements using Publisher Part Number, the software models from that setup are used in this integration, avoiding the creation of duplicate models. Note: Verify that no software models are created without Discovery Maps (DMAPs) and no entitlements are created without a Publisher Part Number (PPN) for a smoother implementation. 11. [Set up Add on, From SA, and Step Up entitlements](https://www.servicenow.com/docs/ZnvgF6kRquZsD4wf9Tsj~g "You can create entitlements to track and manage the From SA and Add-on licensing terms for your Microsoft 365 subscription software products and services.") Associate an Add-on license with a perpetual office legacy license with active Software Assurance. Microsoft 365 offers various subscription types such as Full USL, Add On USL, From SA USL, Step-up license, and reserved licenses. To learn more about these licenses, see [Supported Microsoft 365 license types](https://www.servicenow.com/docs/r6_2tQprAaFVCw4WRRTWUw "The Microsoft 365 integration supports various Microsoft 365 license types"). 12. [Set up license reservations](https://www.servicenow.com/docs/2g3JCACy7yuJorH~jxs5PA "You can create reserve entitlements for Microsoft online services to add licenses to your existing Microsoft 365 subscriptions. You can pay for the new licenses during your true-up process.") Create reserve entitlements for Microsoft online services to add licenses to your existing Microsoft 365 subscriptions. {#integrate-with-microsoft__ol_hfd_kvb_tcc} * Software Asset Management configurations verification Review and validate the Software Asset Management configurations to track and manage Microsoft 365 licenses and usage accurately. 1. [Verify the complete pull of all subscriptions](https://www.servicenow.com/docs/p0MEy12v25ybuxB4EAZGuQ "Determine the exact software subscription information to be pulled from the Microsoft 365 admin center and verify if complete subscription information is pulled accurately to ServiceNow.") Verify with the Microsoft 365 administrator that all subscription records have been successfully pulled. 2. [Run health check](https://www.servicenow.com/docs/UOWo3TLwxFdTFr2rWdHAJg "Run a health check scan on your Software Asset Management configurations and get recommendations on fixing any errors that might exist.") Run a health check on the Health check dashboard by selecting Microsoft 365, SaaS, and General to verify the Microsoft 365 configurations and review the findings for each suite. 3. [Verify the pull of all required software usage](https://www.servicenow.com/docs/AcNpHfYC5JX~oefTv7JXOA "Evaluating software usage activity helps you discover active, inactive, and unassigned subscriptions among all subscriptions found on the Microsoft 365 portal.") Verify if the Software Asset Management application has pulled the usage details for your Microsoft 365 subscribed users, which is required to identify the last activity and determine optimization opportunities. 4. [Create a success goal](https://www.servicenow.com/docs/~Pa3Y~CRgnxMXffGeuyLEQ "Create success goals to track the success of the Software Asset Management application in your instance.") Create a success goal to manage your Microsoft 365 licenses. 5. [Add Microsoft 365 and associated products to the published product list](https://www.servicenow.com/docs/aR5q00EMKmECbYFMTW0toA "Report only on the licensable software products that are part of the current implementation phase of Software Asset Management by publishing those software products. By publishing only a few software products initially, you can assess the initial progress and gradually increase the scope of the implementation.") Add Microsoft 365 and associated products to the published product list to improve readability and declutter the Software Asset Workspace. Scale your SAM efforts strategically by evaluating progress based on resource needs, work quality, and configuration management. 6. [Run reconciliation](https://www.servicenow.com/docs/CsTOnTZs~oHwbwPNjebDjA "Reconciliation is run as a scheduled job (default is weekly), but you can also run reconciliation manually to reconcile software products in the Software Asset Workspace environment on-demand.") Run reconciliation on the Software asset overview page to verify that the licenses are consumed according to the Software Asset Management configurations. You must run reconciliation only for Microsoft as the publisher to verify Microsoft 365 license consumption. 7. [Check license position report](https://www.servicenow.com/docs/miQPwQYU20Y8jfn9Q6WXVg "The Software Asset Management License Position report shows compliance details for each software model in a single list.") Check your overall compliance positions for Microsoft 365 and associated products in the License Position Report. 8. [Act on unlicensed subscriptions](https://www.servicenow.com/docs/VkeYTSf8wV4~g82qcyXbQg "View license usage information related to Microsoft in the publisher overview for Microsoft in the Software Asset Workspace.") Identify and address the unlicensed Microsoft 365 subscriptions. 9. [Act on optimization recommendations](https://www.servicenow.com/docs/bClHWeAGxcuNwMQn_Pr_8w "View licensing optimizations for Microsoft by selecting Microsoft from the Publisher drop-down list.") Software Asset Management supports various optimization use cases, which you can view on the Software asset analytics page. {#integrate-with-microsoft__ol_vzx_rxb_tcc} {#integrate-with-microsoft__ul_ebt_ly1_tcc} **Related concepts** * [Microsoft 365 integration](https://www.servicenow.com/docs/Sh835NQkGU8SioBtLZfM2g "Create an integration with Microsoft 365 to download subscription information that is compared with software installations for compliance.") * [Automated license removal for Microsoft 365](https://www.servicenow.com/docs/CWvGAfyEAyfERFcX6I~YlA "Software Asset Management optimizes Microsoft 365 subscription usage by identifying low usage and overlapping candidates, and then automatically removing the licenses from the Microsoft 365 admin center. This proactive management helps you streamline costs and enhance the efficiency of low usage and overlapping licenses.") * [Software Asset Management software suites](https://www.servicenow.com/docs/5~9tBzn_8IVBY4hg6Rj5~g "Software Suites is a way for a software publisher to group related applications as a set.") * [Evaluating software usage activity for Microsoft 365 subscriptions](https://www.servicenow.com/docs/AcNpHfYC5JX~oefTv7JXOA "Evaluating software usage activity helps you discover active, inactive, and unassigned subscriptions among all subscriptions found on the Microsoft 365 portal.")