Reduce Microsoft 365 licence costs

Start with the lowest-risk changes

Not every saving carries the same risk. Work from the safest changes to the ones that need more thought.

• Leavers still holding a seat. Confirm with HR, decide what happens to mail and files, then remove the licence.
• Duplicate assignments. Two licences that provide the same capability can usually be reduced to one once you have checked what each includes.
• Accounts that may not need a paid licence. Shared mailboxes under the storage limit, and room and equipment mailboxes, generally do not. Check Microsoft's shared mailbox rules before you assume.
• Over-specified plans. The biggest saving per seat, and the one that most needs a security check. See Microsoft 365 licence optimisation.

Put a number on each finding

A finding without a cost is hard to act on. Multiply seats by the price you actually pay, from your invoice rather than a list price, and note the date the change can take effect. A Microsoft 365 licence cost check is the quickest way to see where the money sits before you decide what to do.

Timing decides how much you can change

Some licence changes are only possible at renewal or within a short window. Start well ahead, so you have time to confirm changes with managers. Microsoft explains how renewals work, and our renewal checklist sets out a 90-day plan.

What not to do

• Do not remove a licence from a mailbox that holds data you need to keep.
• Do not move people to a cheaper plan before checking which security features they would lose.
• Do not treat a saving as a promise. Until you have confirmed with the people involved and seen the next invoice, it is an estimate.

Where to get help

Smaller teams can follow our guide on how to reduce Microsoft 365 costs. For a fixed-fee outside view that covers cost and security, see the security assessment.