Are you unknowingly overspending on your Microsoft 365 licences? You’re not alone. But the impact of poor licence management goes far beyond just your bottom line. 

As IT professionals, we’ve observed that licence management is often overlooked, despite its significant impact on a company’s operational efficiency, security posture, and overall productivity. Let’s explore why this matters and how proper management can benefit your business. 

Common Ways Businesses Mismanage Microsoft 365 Licences

Here are 4 common ways businesses mismanage their Microsoft 365 licences: 

  • Retaining inactive licences: Licenses can easily remain assigned to former employees or unused accounts. Beyond the obvious cost implications, this poses a significant security risk, potentially leaving access points open to unauthorised use. 
  • Incorrect licence mix: Not all licences are created equal. An imbalanced mix can lead to overpayment or lack of crucial features, impacting costs, productivity, and your ability to implement critical security measures. . 
  • Overprovisioning features: Many staff members are assigned comprehensive licences when they only require basic functionalities. This not only results in unnecessary expenditure but can also overwhelm users with unused features, potentially reducing productivity. 
  • Neglecting regular reviews: Microsoft frequently updates their offerings. Without regular reviews, you may miss out on new features or security enhancements that could significantly benefit your business operations. 

Why Effective Licence Management Matters

It’s crucial to understand that effective licence management isn’t just about minimising costs. It’s about optimising your Microsoft 365 environment to align with your business needs and strategic goals. Here’s why it truly matters: 

  • Enhanced Security: Proper licence management ensures you have access to the latest security features, reducing your organisation’s vulnerability to cyber threats. We recommend the Microsoft Business Premium plan as the sweet spot for both price and features, particularly around security & compliance
  • Improved Compliance: Certain licence types include advanced compliance tools. Having the right licences helps you meet regulatory requirements more effectively. For example, the cheaper Microsoft 365 Business Standard plan doesn’t include features such as Unified Audit Logging and Sensitivity Labels, both of which are useful for compliance.
  • Increased Productivity: When users have the right tools for their roles, they can work more efficiently. Proper licence allocation ensures everyone has what they need – no more, no less. . 
  • Future-Proofing: Regular licence reviews help you stay ahead of technological changes, ensuring your business is always leveraging the most current and beneficial features. . 
  • Strategic IT Alignment: Licence management is a key part of aligning your IT capabilities with your broader business strategy, driving digital transformation and competitive advantage. 

Proper licence management doesn’t need to be onerous, but it does require ongoing attention, expertise, and strategic planning. It’s about understanding your current needs, anticipating future requirements, and aligning your licensing strategy with your broader IT and business goals. 

If you’re not actively managing your Microsoft 365 licences, you’re likely missing opportunities for cost savings, operational improvements, and enhanced security. More importantly, you may be compromising on tools that could drive your business forward in an increasingly digital world. 

Getting Started with Licence Management 

The first step towards improved licence management is to understand what licences you currently have in place. This is easily done from within Microsoft 365 Admin, or by asking your IT team to produce a report for you.  

From there, you can review your current licence assignment against actual usage and business needs. This will help identify any discrepancies, such as overprovisioning or inactive licences still assigned to former employees. 

At Grassroots IT, we believe that technology should be a strategic enabler for your business. Effective licence management is a key part of this strategy. It ensures you’re getting the most value from your Microsoft 365 investment, both in terms of cost-efficiency and operational capability. 

Ready to stop overspending and start optimising your Microsoft 365 environment? Let’s have a conversation about how we can help you align your licences with your business needs and goals, ensuring you’re not just saving money, but setting your business up for future success.