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Linking Entitlements to Deployments in LCM

This article explains how to link licenses (entitlements) to software deployments in the License and Contracts Manager (LCM) to track consumption and utilization. It guides users through selecting a license within a contract, allocating it to one or more software deployments, and configuring allocation quantities and metrics such as users or installs.

Once licenses (entitlements) have been created and added to a contract in the License and Contracts Manager (LCM), they can be allocated against software deployments. This process allows you to track consumption, understand utilization, and assess compliance.

Purpose of Entitlement Allocation

Linking entitlements to deployments enables you to:

  • Track how licenses are consumed across software deployments

  • Identify under-utilized or over-deployed licenses

  • Maintain clear evidence for audits and internal reviews

  • Understand remaining entitlement availability in real time

Prerequisites

Before allocating entitlements, ensure that:

  • A contract has been created in LCM

  • One or more licenses exist within the contract

  • Relevant software deployments are already available in the platform

Step 1: Access the Contract and License

  1. Navigate to Apps → License and Contracts Manager.

  2. Open the relevant contract.

  3. From the Licenses section, select the license you want to allocate.


Step 2: Open the Track Deployment Window

  1. In the selected license view, locate the Allocations section.

  2. Click Track Deployment.

Step 3: Configure the Deployment Allocation

Within the Track Deployment modal, configure the following fields:

Vendor

  • Select the vendor associated with the deployment (for example, Microsoft).

  • The product list is filtered based on the selected vendor.

Product

  • Choose the software deployment you want to allocate the license against (for example, 365 Apps or Office).

Allocated Quantity

  • Define how many entitlement units should be allocated.

  • Set to 0 to allow unlimited allocation, meaning the deployment can consume from the full entitlement pool.

  • Enter a specific number to limit how much of the entitlement is allocated to that deployment.

You can allocate the same entitlement to multiple deployments.

Deployment Metric

  • Select the metric used to measure consumption:

    • Installs

    • Users

The metric should reflect how the license is consumed in practice.

Notes (Optional)

  • Add notes to document assumptions, allocation logic, or audit-related context for this specific allocation.

  1. Click Track to save the allocation.

Step 4: Review Allocation and Utilization

After tracking deployments:

  • Allocations appear in the Allocations table for the license.

  • The Deployed, Entitled, and Available values are automatically recalculated.

  • A utilization bar visually indicates consumption.

Example

In the illustrated example:

  • Entitled: 90 M365 E5 licenses

  • Deployed: 52 licenses across multiple deployments

  • Available: 38 licenses remaining

This provides immediate visibility into under-utilization and remaining capacity.

Key Considerations and Best Practices

  • Use unlimited allocations (0) when you want deployments to consume dynamically from the entitlement pool.

  • Use fixed allocations when you need tighter control or contractual separation.

  • Always select the correct metric (Users vs. Installs) to avoid misrepresentation of consumption.

  • Use notes to capture audit-relevant context or allocation rationale.