You’re probably paying too much for Office 365. And that’s not really your fault. In fact, it’s nobody’s fault at all. That’s just how these things usually work.
Office 365 licensing is tough to figure out. How many seats do you need? What license tier? Do you need extra seats for temporary workers, new hires, etc.?
But while Office 365 licensing can be complicated, it doesn’t need to cost you so much extra per year. In fact, a quick assessment of your license agreements will likely show many opportunities for savings. Here’s what you might look for.
Inactive and unassigned licenses are one of the biggest expenditures that most enterprises overpay for. After all, most organizations do pay for more licenses than they need, because it streamlines onboarding and provides scale. Better to have too many than too few.
But not too too many. That’s… too many. Massively overbuying Office 365 seats is pretty common.
Plus, what happens when interns leave? Departments downsize? Positions consolidate? Tasks get automated?
Suddenly, a few too many seats becomes far too many. And usually, enterprises don’t catch up their software licenses too quickly. So, they’re left with an overabundance of seats, paying hundreds, thousands, or even tens of thousands of dollars per month for unused, inactive, and unassigned licenses.
Each license tier of Office 365 comes with multiple services. The higher the tier, the more services Microsoft supplies. The highest-tier power users will have bells and whistles that basic seats would never use—and they might not even recognize them!
But even the basic tiers of Office 365 feature services that make other subscriptions redundant. For example, why use slack when Microsoft supplies Teams? Why use DropBox when OneDrive is available?
Unless the other solutions are must-haves, Microsoft’s offerings usually do the trick. And the real key benefit is that at the enterprise level, even 100 seats of DropBox can add tens of thousands of dollars to your yearly tech bill.
Getting rid of duplicate services is one key way to save money, and Office 365 enables that.
While the first two points generally offer the most noticeable cost savings in Office 365, there are other opportunities as well. For example, with the high-tier licenses…
Many higher-tier licenses bundle an outrageous amount of additional applications into the overall service. And many people opt for higher-tier licenses even though they likely wouldn’t use half of them. That means that many enterprises overpay for fancy licenses when basic ones will do—even for managers and executives.
Reassigning and downgrading licenses can also shave money off the total monthly bill. A quick license assessment or audit should show you which users could be safely and effectively downgraded—or which licenses should be reassigned to better use their features.
Additionally, Office 365 may allow you to outsource some of your administrative tasks. Not only does it save your admin team some time, but it also stretches your Office 365 spend even further.
Hypershift is a consulting organization focused on SaaS, subscription software, and cloud technologies. We help organizations navigate their shift toward subscription software models. We ensure best-in-class security, support, and management to optimize enterprise-level cloud strategies.
We will provide a free assessment of your current Microsoft agreement. We offer a partial overview of your Office 365 usage and patterns, cost optimization recommendations, and security vulnerabilities. You can use this assessment to cut wasted spend and evaluate a licensing renewal.
Get your free Office 365 audit and assessment at Hypershift.