Lee Ellams
Microsoft 365 licensing can often be one of those costs that no one is actively checking. Licences are added as teams grow, upgraded when new features are needed, and rarely reviewed unless something forces the issue.
That approach might have worked when costs were lower. It becomes harder to justify as pricing changes are announced and budgets come under greater scrutiny.
With Microsoft announcing price increases due to take effect in the summer, alongside already rising IT hardware costs and growing pressure to justify technology budgets, many organisations are discovering they’re paying more for Microsoft 365 than they realise. A licence review is often the fastest way to uncover where that spend no longer aligns with reality.
Microsoft 365 price increases haven’t come out of nowhere. Microsoft is investing heavily in new capabilities, particularly AI features being built directly into everyday tools like Outlook, documents such as Word, Excel and PowerPoint, as well as Teams. Those features rely on significant compute power and ongoing development, and that cost is now being reflected in licence pricing.
Full details are available on Microsoft’s official pricing announcement: Advancing Microsoft 365: New capabilities and pricing update
At the same time, IT hardware costs are rising. Devices are being kept in service longer, refresh cycles are stretching, and support overheads are increasing. When budgets are under pressure from multiple directions, licensing inefficiencies become harder to justify.
Add wider economic uncertainty into the mix, and it’s clear why CFOs want clearer answers about Microsoft 365 spend - not just how much is being paid, but why those licences are needed and who is actually using them.
Common Microsoft 365 Licensing Mistakes Organisations Make
Most Microsoft 365 overspend happens because licence reviews just aren’t a regular occurrence.
Licences are often assigned when someone joins the business and never reviewed. Premium plans are applied “just in case” a user might need a feature in the future. Employees change roles, teams restructure, and responsibilities evolve, but licensing remains unchanged.
Leavers are another frequent issue. Even with solid offboarding processes, licences can remain active longer than necessary or be duplicated across systems.
Individually, these issues seem minor. Collectively, they create licence creep – a slow, steady increase in Microsoft 365 costs that often goes unnoticed until prices rise or budgets tighten.
Over-licensing has direct financial consequences. Small monthly inefficiencies compound into significant annual spend, and Microsoft price increases amplify that impact further.
There’s also a planning cost. When licensing isn’t clearly audited, IT teams struggle to forecast budgets accurately, finance teams lack confidence in cost projections, and leadership finds it harder to make informed decisions.
From a governance perspective, licensing plays a growing role in security and compliance. Organisations are increasingly expected to demonstrate that access levels and capabilities are appropriate for each role. Paying for the wrong licences can undermine that position.
What A Microsoft 365 Licence Review Involves
A Microsoft 365 licence review is not about removing tools or reducing productivity. It’s about accuracy.
A review examines what licences are currently assigned, how they are being used, and whether they align with real job roles across the organisation. It identifies unused, duplicated, or misaligned licences and highlights where changes may be appropriate.
Crucially, it produces a clear, defensible view of Microsoft 365 spend that both IT and finance teams can rely on. The goal is not aggressive cost-cutting, but clarity and control.
When licensing reflects how people actually work, decision-making becomes far simpler.
Key Benefits
Cost savings are often the most immediate outcome. Removing unnecessary licences or realigning plans can reduce Microsoft 365 spend without impacting day-to-day work.
Beyond savings, organisations gain visibility. Budgeting becomes more predictable, conversations with finance are easier, and IT leaders are better equipped to justify their decisions.
A licence review also supports better future planning. Whether preparing for audits, renewals, device refresh cycles, or growth, having an accurate baseline makes those conversations far more productive.
It also naturally opens the door to broader discussions about device strategy, support overheads, and long-term IT lifecycle planning.
How We Can Help
If Microsoft 365 costs feel higher than expected, or if you’re not confident that current licences still reflect how your organisation operates, a licence review is a sensible place to start.
For many IT teams, the challenge isn’t recognising the issue - it’s finding the time and capacity to review licensing properly alongside everything else.
That’s where an external review helps. We bring an independent view, experience of how licences are typically used across different roles, and the ability to spot savings or misalignment that are easy to miss day to day. The focus isn’t just on reducing cost, but on making sure licences are matched to how people actually work.
The review is low risk and non-disruptive. Just clear insight, practical recommendations, and a solid basis for better decisions.
Before cutting tools or absorbing higher costs, it’s often worth having an expert take a look at what you’re already paying for.
Book a Microsoft 365 Licence Review today, or contact our team to talk it through.
