What to do with the Microsoft licences you already own

Microsoft licensing bundles a large amount of capability into tiers, and most organizations use a fraction of what they hold. Meanwhile the same organizations buy third-party tools that duplicate what the bundle already includes. Both are worth an afternoon.

Start by counting what is assigned versus what is used

Assigned licences and active usage are different numbers, and the gap is usually larger than expected. People who left, roles that changed, projects that ended, and seats bought for a rollout that never happened.

This is the least controversial saving available. Nobody defends a licence assigned to someone who left.

Then find where the tier is not earning its price

Premium tiers are bought for specific capabilities — advanced security, compliance features, analytics, device management. If those features are not configured, you are paying the premium for packaging.

Two responses are legitimate: switch the capability on, or move those users down a tier. What is not legitimate is continuing to pay for it while planning to switch it on eventually.

Look for duplication in the usual places

Five categories account for most of it:

• Security and endpoint protection — an included capability running alongside a purchased one, often because the purchase predates the bundle.
• Backup and archiving — third-party tooling for content that also sits under a retention policy nobody configured.
• E-signature — a separate subscription where the bundled capability would cover the volume.
• File storage and sharing — a consumer-grade or competing service in active use alongside the tenant.
• Reporting and dashboards — a separate BI tool where the licences already held would do the work.

Each one needs an honest assessment. Sometimes the third-party product is better and the duplication is a deliberate choice. Often nobody has looked since the tier changed.

Count the cost of switching something on

Enabling an included capability is not free. It needs configuration, a policy decision, communication, and someone to support it afterwards. A savings case that ignores that cost will be challenged and should be.

The comparison that matters is the cost of enabling what you own against the cost of continuing to buy the alternative. That is usually a clear answer, but it has to be made explicit.

Do this before the renewal, and before buying anything new

The leverage in a renewal conversation comes from knowing what you actually need. Going in with a usage picture and a list of duplications changes the discussion from a percentage increase to a structural one.

And before any new purchase, the first question is whether the tenant already includes something that would do the job. Often it does, badly enough that the purchase is still right — but the question should be asked rather than assumed.