Packing for Success: Managing Your Microsoft 365 Licenses

By bedigital on June 13th, 2024

Picture this: you’ve just got to the airport, ready for your much-needed summer holiday. But before you can say “one tequila sunrise please”, the airport staff let you know that your suitcase is over the weight limit. Or maybe you’ve made it to your dream destination and suddenly realise you’ve left your flip-flops and sunglasses behind. Whether you’ve over or under packed for your holiday, either result will involve spending a lot of unnecessary cash. 

Microsoft 365 subscription licenses, if not managed correctly, can get you into a similar sort of predicament. The move from one-off payments to subscription-based licensing has meant that vendors may have failed to capture data accurately and effectively. As a result, a lot of businesses are at risk of potentially having too many or too few licenses, meaning they’re either spending too much money in the first place or at risk of a hefty fine following an audit. 

To ensure that your holiday is smooth sailing, it’s important to pack exactly what you need. The same goes for your business’ Microsoft 365 subscriptions, and at bedigital, we can help you do exactly that.  

Here’s a simple example to illustrate how bedigital can work with you to reduce your costs surrounding Microsoft 365[EP1]: 

Microsoft 365 subscription cost break-down:  

RRP is £30 per month, per user for E5*     – £411 per year per user 

RRP is £17 per month, per user for E3*     – £238 per year per user 

Let’s use ‘Company X’ as an example: 

Company X has 12,000 employees but they don’t know what applications are being used and by whom, or if they’re actually required in the first place. So, Company X, at the recommendation of their software sales rep, purchases 8,000 E5 and 4,000 E3 licenses at a combined cost of £4,240,000 per annum on subscriptions.  

It’s unlikely that Company X could drop down to E1 licenses, so we will exclude that from this example. Though what is established, through acquiring usage data, is that 1,000 users of E5 can function effectively with E3 licenses. 

These changes to the subscription saved Company X an impressive £173,000 (or 4%) of their total subscription cost. 

At bedigital, we can help turn your IT estate into a software-compliant paradise. Get in touch with us today for more information on how we can help you optimise your business through managing your Microsoft 365 licenses.

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bedigital

bedigital