Are you paying too much for your Microsoft 365 licences?
Software licensing is one of those business costs that can quietly grow over time. A few extra users are added here, someone moves role there, a new subscription is bought to solve a short-term problem, and before long the monthly bill no longer reflects what the business actually needs.
For many SMEs, Microsoft 365 is the best place to start. It is used every day, it is business-critical, and it often touches almost every part of the organisation. But because it becomes part of the background, it is easy for licence costs to go unchecked.
A simple licensing review can help identify where money is being wasted, where licences no longer match how people work, and where your business may already be paying for tools that could replace separate systems.
Why licence costs creep up
Most businesses do not set out to overpay for software. It usually happens gradually, as the business changes. New starters need access quickly. Leavers are removed from day-to-day systems, but their licences may not be reclaimed straight away. Teams adopt new tools. Premium licences are assigned because they seem like the safest option, even when a lower-cost licence would do the job.
Microsoft 365 also gives businesses a wide range of plans, services and add-ons. That flexibility is useful, but it can also make it harder to know whether every user has the right licence. Microsoft’s own business plans include options such as Business Basic, Business Standard and Business Premium, each with different levels of apps, services, security and device management. Choosing the right mix matters.
Common ways businesses pay too much for licensing
In a typical review, there are several areas where avoidable spend can appear:
- Licences assigned to users who have left the business or no longer need access.
- Users on higher-tier licences than their role requires.
- Premium features being paid for but rarely used.
- Separate tools for security, file storage, meetings, backup or device management where Microsoft 365 may already include suitable functionality.
- Old subscriptions still running after a system or supplier has changed.
- Add-ons bought for a short-term need that were never reviewed afterwards.
- Licences assigned manually rather than managed through a consistent joiner, mover and leaver process.
Individually, these costs may not look significant. Across a whole team, every month, they can become a regular expense that adds little or no value.
It is not just Microsoft 365
Microsoft 365 is often the obvious starting point, but it is not the only area worth reviewing. Many businesses also have overlapping or underused subscriptions for antivirus, endpoint protection, backup, cloud storage, password management, remote access, phone systems, e-signature tools, project management platforms and other line-of-business applications.
Over time, it is common for different departments or suppliers to introduce tools for specific reasons. The problem is that those tools are rarely reviewed together. A licensing review gives you a clearer picture of what you are paying for, what is still needed, and where there may be duplication.
What a Citadel licensing review looks at
Citadel’s approach is straightforward. We look at the licences you have, how they are assigned, and whether they still match the way your business operates today.
That usually includes reviewing:
- Current Microsoft 365 subscriptions and assigned users.
- Whether users have the right licence for their role.
- Unused, underused or duplicated services.
- Licences assigned to inactive or former users.
- Security, compliance and device management requirements.
- Renewal dates, contract terms and billing arrangements.
- Opportunities to consolidate tools where it is practical and appropriate.
- Processes for adding, changing and removing licences in future.
The aim is not simply to cut costs for the sake of it. The aim is to make sure your licensing is right-sized, secure and aligned with how your people actually work.
How much could a licensing review save?
The level of saving depends on the size of your team, the licences you currently use and how long it has been since they were last reviewed. For some businesses, the saving may come from removing licences that are no longer needed. For others, it may come from moving users to a better-fit licence, removing duplicated tools, or making better use of features already included in Microsoft 365.
Even small changes can make a noticeable difference when they apply across multiple users every month. More importantly, the review gives you a clearer basis for future decisions, so licensing does not drift again as your business changes.
When should you review your licences?
A licence review is particularly useful if your business has grown, reduced headcount, changed IT provider, moved systems, introduced hybrid working, or is approaching a renewal date. It is also worth reviewing licences if you are unsure whether your Microsoft 365 setup includes the right security and management features for the way your team now works.
Microsoft 365 licences can be assigned or unassigned through the admin centre, but making the right decision is not just an admin task. It needs an understanding of your users, your security requirements, your current tools and your plans for the business.
Book a no-obligation licence review
If you have not reviewed your Microsoft 365 licences recently, Citadel can take a practical look at your current setup and show you where there may be savings, duplication or a better way to structure things.
We will help you understand what you are paying for, what is actually being used, and whether your licensing still reflects the needs of your team.
To find out whether your business could reduce avoidable licence costs, get in touch by filling in the form below or calling us on 0345 340 2120 and ask for a no-obligation licensing review.