Menu

Microsoft 365 licences

Microsoft 365 cost optimisation for SMEs

Smaller firms rarely have a licensing specialist. The good news is that most of the useful work is simple, if it is done regularly.

In short

How can a UK SME optimise Microsoft 365 costs?

Review who has which licence, remove what is unused, and match each group of people to the plan they actually need. Do it before renewal, and keep security features in view while you do.

Last updated

Why SMEs are exposed to licence drift

In a small business, whoever looks after IT is usually also doing something else. Licences are assigned in a hurry, leavers are removed late, and the plan chosen on day one stays in place as the business changes. A few seats left behind matter more when the whole bill is small.

Four questions worth asking

  • Does everyone with a paid licence still work here and use it?
  • Does everyone need the plan they have, or would a different one do? Microsoft's business plan comparison shows what each includes.
  • Are there add-ons bought for features a plan already includes?
  • Do any security controls we rely on depend on a specific plan?

A routine that fits a small team

  1. Once a quarter, check the user list against your staff list.
  2. Once a year, ahead of renewal, run a Microsoft 365 licence review.
  3. When someone joins, moves or leaves, update the licence the same day. See Microsoft 365 licence management.

Do not cut protection to cut cost

A cheaper plan can remove controls that protect accounts. Read ten security controls to set first and check Microsoft Secure Score before moving anyone down a plan.

Where Innoligo fits

Innoligo works with UK and European SMEs. You can see what an assessment report looks like in our sample reports, or book a free 20-minute call to talk it through.

Frequently asked questions

We only have a handful of users. Is it worth it?

A short check is still worth doing once a year. Our free tool to choose the right report can point you to the right level of help.

Should we buy through a partner?

That is your choice. Innoligo is an authorised Microsoft CSP partner, and this guidance applies whoever you buy your licences from.

Where do we start?

With how to reduce Microsoft 365 costs for the step-by-step version.

Innoligo is an authorised Microsoft CSP partner. This page is general information and applies whoever you buy your licences from. Microsoft changes its plans, prices and admin screens, so check the linked Microsoft pages for current detail. Microsoft, Microsoft 365, Entra and Copilot are trademarks of the Microsoft group of companies; this page is independent and is not published or endorsed by Microsoft. About Innoligo.

Want it checked for your business?

An expert-led assessment covers cost and security together: £999, 4 to 6 weeks, read-only access.

See the assessments