Hi ​@hs08 if you are licensed on the fixed license model you must explicitly name each user to be protected, if you license the entire tenant you are on a variable license that allows you to exceed and reconcile your license shortfall.

To expand upon this further, if a user is unlicensed in M365, we don’t have any mailbox/onedrive/sharepoint to protect so there’s nothing to backup

Hi ​@MicoolPaul 

I’m use flexible license and right i only have around 900 mailbox/onedrive/sharepoint users.

So with this scenario when i select entire tenant in backup policy, the backup policy will only backup active M365 users and no worries the license will be consumed by non-active M365 users. Active M365 users mean any user who have mailbox, onedrive and sharepoint.

Am i right?

Active = if they have ANY M365 service to protect, so just consider that. It also includes if you’ve got M365 shared mailboxes if they are licensed for example.

Try running VDC Insights and see how many licensed users it detects

Hi ​@MicoolPaul 

Here the dashboard

Dashboard says 929 licenses required

How VDC calculate the active and inactive users?

Active/inactive is based on M365 sign in, they all need to be licensed regardless, just to make you aware as well, I’ve adjusted the number I told you as I misread your question before