How to save thousands a year on Microsoft Licensing

For businesses that rely on Microsoft products, the cost of Microsoft licensing is an important part of their budget. As their business grows, these costs will rise over time, especially if more functionality or different pieces of software are required.

Even for SMEs, the price of a Microsoft 365 or Office 365 subscription that covers every employee is expensive. As more and more employees join the organisation, these subscriptions can be left to tick along, leading to inefficiencies and redundancies within your licensing package and increasing your costs dramatically over time.

Thankfully, there are many ways that you can improve the state of your Microsoft licensing structure. In this blog, we’re going to discuss a few of these and explain how they can lead to incredible cost savings, sometimes even as much as thousands of pounds a year!

Use the correct license type

Depending on the size of your business, there will be a type of license for Microsoft 365 or Office 365 with fits you best. These license types vary greatly in their functionality and pricing so you mustn’t be tied into a subscription that doesn’t work for your business.

A common mistake that organisations make is signing up for a particular license that fits their needs at a particular time and then failing to review this regularly. We’ll cover this in more depth later, but this can lead to businesses paying sometimes double what they should be for functionality that they no longer require. Similarly, certain license types will be better for smaller or larger organisations.

A simple licensing package switch can save many organisations hundreds of pounds a year, whilst also retaining the necessary functionality.

Familiarise yourself with Microsoft’s NCE subscription changes

Microsoft recently launched the New Commerce Experience (NCE). This changed how many subscriptions work, mainly in terms of licensing payment structures. To summarise, Microsoft is going to be charging businesses a premium to pay monthly but will provide discounts if you sign up for a 12- or 36-month plan.

If you remain on a monthly plan, you may find that your prices could rise as much as 20% this year. Naturally, this isn’t acceptable from a business standpoint, so it’s important that you familiarise yourself with these changes and consider moving onto an annual plan.

Regularly review your licensing requirements

Assessing your licensing requirements regularly is vital to reducing your costs. We would advise reviewing this every 6-12 months to ensure that you aren’t paying for anything you don’t need and that your current licensing package is still appropriate for your organisation.

A few key things to consider are:

  • Has your organisation grown or shrunk?
  • Have your functionality requirements changed?
  • Is your current package providing everything you need it to?
  • Is there another package that would meet your needs for a cheaper price?
  • Have your cyber security requirements changed?
  • Do you need more storage?
  • Are you considering a move to a cloud-based solution?
  • Have your compliance requirements changed?

These are just a few examples of why a regular review is helpful. It allows you to identify gaps in your current licensing package and help you identify areas that you could improve or reduce costs.

Speak to an expert

There are no two ways about it, Microsoft licensing is complicated. This complexity has been heightened further by Microsoft’s recent changes with the NCE.

It’s common for businesses, especially SMEs, to lack the time and expertise to properly review and improve their licensing structure, especially on an annual or bi-annual basis. In these situations, you should seek the advice of a licensing expert.

At Wizard IT, we specialise in helping organisations reduce their licensing costs and improve the functional effectiveness of their licensing packages. As a Microsoft Certified Gold Partner, we also have access to rates that aren’t accessible anywhere else, further reducing your costs and ensuring you have the best deal possible.

A simple change in your package can lead to thousands of pounds in savings per year, with further changes, enhancements, and regular reviews leading to even bigger reductions in cost. Get in touch with us today to find out how your business can benefit. Our Microsoft-certified experts will be happy to walk you through our offering and answer any questions you have.

If you would like to chat about your Businesses needs, get in touch with our IT experts.

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