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Cutting software costs

The 90-Day Inactive User Rule: Setting Reclamation Thresholds That Work

How to choose the right inactivity threshold for reclaiming software licenses, by product type, with the data sources and exceptions to plan for.

By the MI Solutions SAM team9 min read2 exhibits

"Reclaim licenses that have not been used for 90 days" is the most common rule in software asset management. It is a good default, but not a universal one. A collaboration tool used daily should be flagged much sooner. An engineering tool used for a quarterly project might be wrongly reclaimed. The right threshold depends on how the product is used.

Why the threshold matters

The threshold is a trade-off between two mistakes. Set it too long, and you keep paying for licenses that are clearly not needed. Set it too short, and you reclaim from people who were about to use the product, creating tickets, frustration and re-purchases.

Exhibit 1
A shorter threshold finds more licenses, but more of them come backLicenses flagged and licenses later restored, by threshold, for a 2,000-seat office suite,illustrative020040060030 days45 days60 days90 days120 days180 daysFlagged 170Restored later 5Illustrative. For a product used weekly, restore requests fall sharply between 60 and 90 days; for a dailytool, the curve shifts left.

The sweet spot is where the restore line flattens. For a typical office suite that is around 90 days. For daily tools it comes much earlier.

Thresholds by product type

Exhibit 2
Inactivity thresholds should follow how a product is usedSuggested days without activity before a license is flagged for reclamation0 days50 days100 days150 days30 daysTeam chat45 daysVideo meetings60 daysCRM60 daysDesign tools90 daysOffice suite120 daysEngineeringtoolsGuidance only. Adjust for your organization's working patterns and each contract's terms.

The logic is simple: the more frequently a product is used in normal work, the sooner a gap in activity signals that the license is no longer needed.

Measuring activity reliably

"Last used" can mean different things in different systems. Choose the most reliable signal for each product:

SourceWhat it measuresWatch out for
Vendor admin consoleLast sign-in or last activity in the appDefinitions vary by vendor
Identity provider (SSO)Last authentication to the appLong-lived sessions can hide activity
Device inventoryLast time installed software ranNot available for every product
Vendor usage reportsFeature-level activityOften limited to higher plans

Use the same source and definition every cycle, so results are comparable and users trust the rule.

Plan for exceptions

01Leave

Parental leave, sabbaticals and long-term sick leave. Pause reclamation, or reclaim and restore on return.

02Seasonal work

Finance at year-end, audit tools, event software, annual planning tools.

03Service accounts

Accounts used by systems rather than people, which may need to stay licensed.

04New joiners

People who received a license but have not started using it yet. Give them a grace period.

05Contractual minimums

Licenses you must keep under the contract, whether used or not.

06Executives and on-call

Same rule, but confirm with an assistant or manager before reclaiming.

Turn the threshold into policy

Write the thresholds into your SAM policy, publish them, and apply them consistently. Users accept reclamation far more readily when they know the rule in advance. Our guide to license reclamation explains the full process, including notifications, and our SAM policy guide shows where the rule belongs.

A threshold policy is complete when it states

How MI One helps

Frequently asked questions

Is 90 days too long?

For daily-use tools, yes. For products used periodically, it can be too short. Set it per product.

What if a vendor does not provide last-activity data?

Use your identity provider's sign-in data, or ask the vendor for a usage export before renewal.

Should we reclaim from executives?

Apply the same rule to everyone, with the same notification. Consistency is what makes the policy credible.

Can we automate reclamation completely?

For low-risk products with group-based licensing, yes, after a notification step. For expensive or specialist products, keep a human review of the list.

See where your software budget goes

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