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How to Save Money on Microsoft Licenses: A Guide to Software Licensing Optimisation

Blogs and insights

Businesses rely heavily on software to streamline operations, boost productivity, and maintain a competitive edge. Among the most popular and widely used software suites is Microsoft’s array of products, including Office 365, Windows, and more. However, many organisations overspend on Microsoft licenses due to issues like duplication and underutilisation. 

The good news is that there are effective strategies to optimise your software licensing and save money. In this blog, we’ll delve into how businesses can cut costs and enhance efficiency through license optimisation, sharing a case study showcasing real-world savings.

The Common Costs of Software Licensing

One of the major problems behind overspending on Microsoft licenses is duplication. In large organisations, various departments or teams often purchase software licenses independently, leading to redundant licenses and wasteful expenditure. For instance, your marketing team may procure Microsoft 365 licenses, while the HR department buys the same licenses separately. 

Another common issue is underutilisation. Many organisations invest in software licenses but fail to fully leverage the features and capabilities they offer. As a result, they end up paying for software that isn’t used to its fullest potential, leading to a significant waste of resources.

 

The Power of a License Review

A license review is the first and crucial step in the journey towards software license optimisation. It involves a thorough examination of your existing licensing agreements, usage patterns, and business requirements. Here’s why a license review is essential: 

Identifying Opportunities: A license review helps identify opportunities to consolidate licenses, eliminating duplicate or underutilised licenses. This process can lead to significant cost savings. 

Staying Compliant: Ensuring software license compliance is crucial to avoiding legal issues and penalties. A review helps you understand your compliance status and rectify any potential violations. 

Reducing IT Costs: By streamlining your software licenses and eliminating underutilised resources, you can substantially reduce IT costs, freeing up funds for other critical initiatives.

Case Study: A Real-Life Example

A large authority approached 848 for support in managing and optimising their software estate. With a team of 600 staff, the authority oversees and supports more than 190,000 individuals and 10,000 organisations. The authority had previously undergone a transformation project, migrating to the Microsoft Cloud, but was struggling with governance, cost control, compliance, and a rapidly escalating software spend. 

The 848 Group, a Microsoft Solutions Partner with extensive experience in optimising IT investments, proposed a software license review underpinned by a proven plan, build, run methodology. This comprehensive review aimed to uncover the reasons behind rising software costs and help optimise IT. 

During the review, 848 identified opportunities for the authority that enabled them to achieve significant cost savings, improve compliance, and free up valuable IT budgets. The recommendations provided by 848 allowed the client to cut their software spend by an impressive 25 percent. 

848’s expert analysis uncovered instances where the client had been wasting budget on unnecessary licenses, accidental oversubscriptions, and license duplications. Furthermore, they identified potential security and compliance risks within the client’s software infrastructure. 

In just 12 months following the license review, the client reduced their total cost of ownership by 25 percent, all while maintaining the same level of service, functionality, and performance.

Book a License Review with 848 Today

Are you ready to take control of your software licensing costs and boost efficiency? Our team of experts are here to help. By booking a license review, you can uncover opportunities to consolidate licenses, eliminate underutilised resources, and reduce IT costs while maintaining compliance. 

Take the first step towards savings and efficiency by booking a license review today.