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Are You Wasting Money on Microsoft Licenses? Here's How to Fix It

December 6, 2024
December 12, 2024
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Are You Wasting Money on Microsoft Licenses? Here's How to Fix It

Microsoft products are essential for business operations, offering tools for productivity, communication, and collaboration. However, many organizations spend more than necessary on Microsoft licenses due to common inefficiencies. Here's a closer look at the ways companies lose money and practical steps to optimize licensing and reduce costs.

Over-Licensing: Buying More Than You Need

Over-licensing happens when businesses purchase more licenses than required. This can result from overestimating needs or a lack of visibility into actual usage.

The Fix:

  • Conduct regular audits to assess how licenses are being used
  • Use license management tools to track usage and align purchases with actual needs

Underutilization: Not Fully Using Available Features

Many companies only use a fraction of the features offered by Microsoft tools. Advanced capabilities in products like Power BI or Microsoft 365 often go unused, leading to underutilized investments.

The Fix:

  • Provide training programs to help employees understand and utilize advances features
  • Encourage teams to explore and experiment with less familiar functionalities

Choosing the Wrong Licensing Model

Microsoft offers various licensing models, such as perpetual licenses, subscription-based models, and cloud services. Selecting an option that doesn’t fit the organization's needs can lead to unnecessary spending.

The Fix:

  • Evaluate organizational needs and compare licensing models to find the most cost-effective solution
  • Consider factors like scalability, flexibility, and total cost of ownership when making decisions

License Reclamation: Overpaying for Unused Licenses

Unused licenses often remain active due to employee turnover, role changes, or completed projects, leading to unnecessary costs

The Fix:

  • Implement processes to track employee status changes and reclaim unused licenses promptly
  • Use automation tools to simplify and expediate license reallocation

Lack of Software Asset Management (SAM)

Without effective Software Asset Management practices, companies may overspend on licenses or risk non-compliance. SAM ensures better control and efficiency in managing software throughout its lifecycle.

The Fix:

  • Develop a comprehensive SAM strategy, including inventory management, compliance tracking, and vendor oversight
  • Leverage SAM tools to automate routine tasks and maintain compliance

Stop Overpaying for Microsoft Licenses - Get a Free Assessment!

Wondering if you’re leaving money on the table with your Microsoft licensing? Let our team help. Our FREE Microsoft Licensing Assessment provides:

  1. A complete inventory of your licenses (no more guesswork)
  2. Clear usage insights - who's using what and how often
  3. Actionable recommendations from our experts to slash costs

Most companies save 5–10%—sometimes more! Ready to optimize and save?

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Microsoft Licensing Assessment

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