My Microsoft 365 license renewal is coming up. How do I save money?
Microsoft is updating its pricing for all Microsoft 365 annual subscriptions, effective April 1, 2025. These updates will impact monthly-billed annual plans, introducing a 5% price increase to enhance flexibility and standardize billing across their global platforms.
What is changing:
- Existing Customers:
- Stay on Monthly-billed annual plans with a 5% increase
- Switch your monthly-billed annual plan to Annual prepayment to avoid the increase
- New Customers can choose:
- Monthly-billed monthly plans
- Monthly-billed annual plans (+5% premium)
- Discounted annual-billed annual plans (20% savings)
What is Microsoft 365/Dynamics 365 license optimization?
License optimization involves analyzing and adjusting your Microsoft 365 and Dynamics 365 licenses to ensure you’re only paying for what you use. This process identifies unused, unallocated, or overprovisioned licenses, as well as redundant third-party services that overlap with Microsoft solutions.
How can I reduce Microsoft 365 and Dynamics 365 licensing costs?
360 Visibility can help you reduce costs by regularly auditing your licenses to identify unused or underutilized subscriptions, rightsizing based on actual usage, and eliminating redundant third-party services that offer features already covered by Microsoft solutions.
What are the common signs of overprovisioned licenses?
Overprovisioned licenses often manifest as multiple licenses assigned to a single user, licenses assigned to inactive users, or licenses that include features not being utilized by your organization. For example, an Exchange only user assigned a Microsoft 365 E5 license. Regular reviews can uncover these inefficiencies.
How can I identify unused or unallocated Microsoft 365 licenses?
Unused licenses can be identified through usage reports available in the Microsoft 365 admin center, which show activity levels across different services. 360 Visibility's License Optimization and Management service helps make sense of the report and provide actionable next steps. Unallocated licenses can be tracked by comparing the total number of licenses purchased with those assigned to active users.
How does eliminating third-party service redundancies save money?
Many organizations use third-party services for security, email, storage, or collaboration without realizing that Microsoft 365 already provides these features. By consolidating these services under a single Microsoft 365 license, you can eliminate unnecessary costs and simplify management.
What steps are involved in a license optimization assessment?
A typical assessment involves gathering data on current license usage, analyzing this data for inefficiencies, making recommendations for reallocation or downgrades, and implementing those changes to reduce costs while maintaining functionality.
How often should we perform license optimization?
It’s recommended to conduct a license optimization review at least annually, or whenever significant organizational changes occur, such as mergers, acquisitions, or shifts in workforce size, to ensure your licenses continue to align with your business needs.
Can license optimization affect user productivity?
When done correctly, license optimization enhances productivity by ensuring that users have the appropriate tools and features they need without unnecessary clutter or overcomplicated setups. Proper planning and communication are key to avoiding disruptions.
How do I get started with Microsoft 365 or Dynamics 365 license optimization?
You can start by contacting a trusted Microsoft partner like 360 Visibility to perform a comprehensive license optimization audit. Our experts will help you identify cost-saving opportunities and implement a tailored optimization strategy for your organization.
Why should I trust 360 Visibility with my license management?
360 Visibility is a Microsoft Cloud Services Partner with extensive experience in license optimization and management. We hold advanced specializations in Microsoft Business Applications, Modern Work, Security, and Azure Infrastructure. We understand the complexities of Microsoft licensing and are committed to helping businesses maximize their investments while minimizing costs.