How MSPs Can Audit Tool Usage to Eliminate Redundancy and Underuse

In some cases, managed service providers (MSPs) accumulate too many tools across functions like ticketing and documentation, collaboration, and automation. When tool adoption varies across teams or when multiple platforms offer similar functions, it leads to inefficiency, unnecessary expenses, and user confusion.

To avoid any of those results, regularly audit software usage to help you identify what is underused, where platforms can be consolidated, and how to realign the stack with your MSP’s daily needs.

This guide provides a lightweight, repeatable audit process designed to achieve a streamlined, non-disruptive audit. When paired with NinjaOne’s IT monitoring, usage insights, and automation, you’ll have a structured approach to optimizing spending and boosting operational efficiency.

For a quick visual overview, watch our video guide on How MSPs Can Audit Tool Usage to Eliminate Redundancy and Underuse.

Steps to audit tool usage to eliminate redundancy and underuse

To streamline operations, MSPs first need to identify which tools are fully used and which ones are just filler. A recurring software usage audit uncovers unused and underutilized tools and spot overlapping features to help you save cash and make workflows more efficient.

📌 Prerequisites:

• Prepare a complete inventory of all internal tools, including SaaS (Software-as-a-Service) and on-premise applications, along with their associated licenses, costs, and designated owners.
• You must have access to usage metrics like logins, active accounts, and feature usage.
• Utilize appropriate auditing tools to collect and manage usage data. PowerShell can automate data extraction from systems, while Excel is ideal for organizing and analyzing collected information.
• Engage team leaders and technicians for feedback.
• You need a lightweight framework or matrix for classification (Keep, Consolidate, Retire).

Step 1: Create an inventory of all deployed tools

Compile a list of every tool your MSP currently utilizes. This will give you the information needed to assess cost, usage level, and potential overlap.

📌 Use Cases:

• This step helps you create a consolidated list of every tool in use.
• It provides visibility into tool costs by category, helping you identify where spend is concentrated.
• Supports transparent decision-making on which tools to keep, consolidate, or retire.

📌 Prerequisites:

• You will need a compilation of license records or billing statements to confirm which tools are currently used.
• This requires input from technicians or their team leads to confirm tool ownership and usage.

Here is a sample inventory template:

This template makes it easier to spot redundant tools and measure usage and prices.

How can you gather information about the tools being used?

• Check billing and license records to see the software you’re paying for.
• Review sign-in or account logs to confirm which tools are being used.
• Ask team leads to explain how each tool contributes to their daily workflows and whether it adds real value to their operations.

Step 2: Collect tool usage metrics

Once you know what tools are being used, the next step in your tech stack audit is to check how much your team relies on them. This will enable you to separate essential platforms from those that add cost without delivering value.

📌 Use Cases:

• This step shows whether tools support daily operations or not.
• Match license spend against real adoption and usage.

📌 Prerequisites:

• You need access to usage reports from each tool’s admin console or dashboard.
• This requires log data from your SSO (Single Sign-on) or identity provider to verify sign-ins.

Here’s the usage data you will need to extract:

• Active user counts (daily, weekly, monthly)
• Number of tasks or tickets created through the tool
• Login events and frequency
• Feature engagement metrics

Once collected, you can compare usage data against license costs and each tool’s intended purpose. This will give you clarity about which platforms deliver value and which ones are underused.

How can you extract software usage data?

• You can pull directly from each tool’s administrator dashboard. SaaS platforms show active users, logins, and feature activity.
• Check your SSO or identity provider logs to confirm how often employees are signing in.
• Utilize the built-in export options to download usage stats for easier analysis.
• Ask team leads or known users how they use the software to add insights that raw numbers cannot capture.
• You can collect up-to-date data for better decision-making if you have an RMM with IT asset management capabilities.

Step 3: Analyze for redundancy and underuse

Once you have usage data, the next step is to spot underused tools or duplicated functionality. This will help you rationalize the stack and cut costs without hurting productivity.

📌 Use Cases:

• This step highlights obsolete and rarely-used tools that can be retired.
• It reveals redundant platforms that perform similar functions.
• This shows where licenses are paid for but never deployed or activated.

📌 Prerequisites:

• You need to possess the inventory list from Step 1 to compare categories and costs.
• This step requires usage metrics from Step 2 to determine adoption rates.
• You will need input from managers to confirm whether low-usage tools are still a crucial part of the workflow.

Here’s what you need to look for:

• Low-use tools. For example, a software with fewer than 10% active users.
• Functional overlap. This is like if you’re using both Asana and Trello for tasks, or MS Teams and Slack for communication.
• Licenses that have not been used yet or are undeployed.

By identifying overlap and underuse, you can form a clear basis for consolidating software while maintaining functionality your teams rely on.

Step 4: Automate detection of underuse via PowerShell

As your tech stack grows, manual checks become tedious. However, you can use scripts and exports to automate parts of the audit IT tool process. This will make it easier to detect platforms you no longer need.

📌 Use Cases:

• This step speeds up reviews by automatically highlighting underused tools.
• It reduces human error when scanning large environments with many endpoints.
• This supports scheduled tech stack audits without adding extra work.

📌 Prerequisites:

• You need elevated permissions (admin access) to run scripts in PowerShell.
• This step requires CSV exports or reports from Step 2 detailing underuse.

Here is the process for automating the detection of underuse:

1. Ensure your CSV report from Step 2 has headers that match what the script expects. In this case, let’s go with ToolName, ActiveUsers, etc.
2. Save your usage data CSV file with something simple, like ToolUsage.csv. 
3. Put the file in an easy-to-find folder, like Documents.
4.  Update the script:# Import usage data and filter for tools with fewer than 2 active users

   Import-Csv ToolUsage.csv | Where-Object { [int]$_.ActiveUsers -lt 2 } | Select-Object ToolName, ActiveUsers

   1. Change the file name (ToolUsage.CSV) if needed.
   2. Update the script to match the column headers if they’re different.
   3. You can change the number in ActiveUsers based on what your environment classifies as the underuse threshold.
5. Next, run the script. This includes the location of the document, file name, and headers:
   cd C:\Users\YourName\Documents
Import-Csv toolUsage.csv | Where { $_.ActiveUsers -lt 2 } | Select ToolName, ActiveUsers
6. Read the results; PowerShell will list tools with fewer than two active users.

Step 5: Gather qualitative feedback from your team

Numbers paint a clear picture, but don’t always tell the whole story. When performing a tech stack audit, talk to your team to understand why usage looks like it does and which tools they rely on.

📌 Use Cases:

• This highlights whether duplicate tools are serving different needs across teams.
• It lets you capture upcoming plans or requests before you can make changes.

📌 Prerequisites:

• You need to have the usage data from Step 2 to guide your questions.
• This requires a simple survey tool, like Google Forms, to promptly collect wider feedback.

Here’s what you need to find out:

• Ask why a tool is sparingly used. It could be due to workflow mismatch, awareness, or accessibility.
• Confirm whether duplicate tools are filling needs across departments.
• Check whether teams are planning to adopt new tools, prefer others, or change how they use existing ones.

Pattern your questions around these to help you avoid disruption when optimizing tools. This also ensures that decisions will be grounded in how people actually work.

Step 6: Classify tools to Keep, Consolidate, or Retire

After reviewing usage data and team feedback, you can now decide the future of each tool in your MSP’s arsenal.

📌 Use Cases:

• This step ensures you keep the tools your team needs, reducing waste and confusion.
• This provides justifications for license renewals or cancellations.
• It lets you communicate changes to staff with transparency.

📌 Prerequisites:

• Complete inventory from Step 1, usage data from Step 2, and overlap analysis from Step 3.
• You need to have input from managers to confirm business-critical needs.

Use this decision matrix to justify the changes in your IT stack:

• Keep: Tools that are essential and actively used by your team.
• Consolidate: Tools with overlapping functions. Select the one that fits your workflows.
• Retire: Tools that are underused, redundant, or obsolete.

Here’s an example of a decision form based on the decision matrix:

⚠️ Things to look out for

Audit software usage best practices summary table

A successful IT audit depends on consistent practices that keep the practice simple, repeatable, and aligned with your business goals. The table below gives you the key components to focus on and the benefits they deliver.

Workflow example for auditing tool usage

MSPs can use the repeatable workflow below that keeps tool usage reviews consistent and seamless.

Here is a suggested quarterly tool usage audit workflow:

1. Export your tool inventory and usage metrics.
2. Run scripts to flag low-use and duplicate tools.
3. Engage teams for quick feedback to add context.
4. Sort each tool into Keep, Consolidate, or Retire categories.
5. Document the decisions and assign actions.
6. Review again next quarter to track progress and confirm savings.

Streamline your MSP toolset with recurring software audits

Regular software usage audits will help MSPs avoid unnecessary costs, improve workflows and efficiency, and maintain a lean yet impactful toolset. You can achieve this by combining data, user testimonials, and structured decision-making, giving your team operational efficiency while reducing costs without disrupting service delivery.

Related topics:

• The Cure for Overtooling and Vendor Sprawl
• What Is Software Sprawl: Risks, Impacts, & Solutions
• How to Audit Your MSP Tool Stack for Overlap, Waste, and Underutilization
• High Risk Software Audit
• Best Software Inventory Tools in 2026