Microsoft 365 License Deactivation Error Tips for Users & Admins
Recently, many M365 business plan subscribers have begun complaining that they see a Microsoft 365 license deactivation alert in various Office apps. The vast majority of the complaints occur at the user level when they interact with Office 365 apps, like Word, Excel, or PowerPoint.
A small warning bar appears below the toolbox user with the text:
“PRODUCT DEACTIVATED. On Day, Date, Most Features of Product will be disabled.”
This sounds serious, and many users may worry as to what will happen to their data and apps. However, there is no need to panic. With the error confirmation, Microsoft has also released a set of guidelines.
Let us start by addressing the most important question first.
Why Do I See the Microsoft 365 License Deactivation Alert on My Apps?
Knowing why this happens is the first step toward resolution. Moreover, it also helps to prevent accidental triggers. Users face the brunt of the issue but are not the source behind it.
As the admin, if you attempt to do any of the following tasks without due precaution, then your users might also see the error pop up on their screens:
- Changing license or service plan settings.
- Toggling the “Latest version of Desktop Apps.”
Going from one subscription plan to another, like Office 365 E3 to Microsoft 365 E3, is the most common cause. Since this change can only be made at the admin level, users can do little to nothing from their side to trigger or solve the issue.
It was also seen that when a bunch of users were shifted from one licensing group to another, many, if not all, started facing deactivation alerts. Moreover, this was also seen in hybrid environments like synced on-premises security groups.
Microsoft points to multiple potential triggers, while a single root cause remains unknown.
How to Distinguish Between a Real Microsoft 365 License Deactivation and a Fulty Alert?
Refer to Microsoft’s official support page on this issue for the latest updates. Organizations that have already registered a complaint with Microsoft must also collect all the supporting logs to verify that this is an error and not a genuine deactivation notification.
What Users Can Do at Their Level
- Shift your Office 365 license to another computer and see if that helps. Be careful not to overdo any manual movement of licenses, as it could trigger the error in safe accounts.
- Use the Reactivate button that appears inside the alert bar. You may need to sign in again to reactivate.
- Close all open instances of Office apps and log off your accounts. Open the apps and sign in again to see if the alert disappears.
If you see the alert pop up again, escalate it to the admin. Only they can verify the correct date of license expiry.
How Can Admins Try to Fix the Error?
Microsoft has released a set of early workarounds that may help fix this issue. Here’s what admins can do:
- Use the Office License Diagnostic Tool:
- Download it from the Official Microsoft Download Center.
- Unzip the file and navigate to the folder containing it.
- Run licenseInfo.cmd from the command line (no need for admin access).
- Follow the steps to collect diagnostic logs and share them with Microsoft Support.
- Avoid making any licensing changes in the admin center while the issue persists.
Best Practices to Handle Such Situations
As there are indications of a major Microsoft 365 rebranding, such errors may increase in frequency. That’s why admins must have a plan in place to keep their organizational data safe.
- Store a safe copy of emails, contacts, calendars, and documents using SysTools Office 365 Backup Tool.
- Be cautious with any admin-level changes.
Conclusion
This blog explains all the steps an admin must take if users in their organization receive a random Microsoft 365 license deactivation. As the issue is still under investigation, there are no permanent fixes. However, using the guidelines and best practices mentioned above, you can minimize the impact on your organization.
Even though the error is fixed for now, it is no guarantee that it won’t happen again. Such incidents are the reason why Microsoft and other cloud providers refrain from claiming 100% uptime. To stay on the safer side, the professional backup tool is your go-to solution.
