Renewing Microsoft licenses can be overwhelming for organisations, often resulting in overspending or selecting the wrong SKU or Suite for their needs. And this overspending doesn't just affect the licensing bill. It can increase M365 and Azure admin workload,  and will increase your Unified Support price.

Some common challenges organisations face with Microsoft licensing renewals include:

The complexity of options: There are many plans available, so choosing between multiple plans, add-ons, and bundles can be overwhelming.

Risk of overspending: Without a clear understanding of your needs, organisations may pay for unnecessary licenses or features.

Compliance concerns: Ensuring all software is properly licensed to avoid penalties can be difficult.

Keeping up with changes: Microsoft frequently updates its licensing terms, making it hard to stay current. (Note: in an MCA your terms can change mid contract)

Aligning licenses with actual usage: Organisations often struggle to match licenses to real user needs, leading to inefficiencies.

Maximising value through effective license management

Every organisation needs to get the most value from its Microsoft negotiations. By taking the time to review your current licenses, you can identify unused or unnecessary subscriptions, ensuring you're only paying for what you actually need. Matching license types to user roles or departments can help to streamline access, reduce complexity, and improve operational efficiency throughout the organisation. 

It's also important to continuously monitor and track your license usage, which allows you to see who is using which license - helping you avoid over-licensing and identify opportunities to relocate resources. Staying abreast of any licensing changes will also ensure compliance and support smarter decision-making.

Effective license management helps maintain cost-effectiveness while supporting security and productivity. A proactive approach to license management not only prevents overspending but also ensures that Microsoft subscriptions fully support your business needs.

Expert tips to avoid overspending

Here are our tips for ensuring your Microsoft licensing renewal stays within budget.

Look closely at your licenses

When you comprehensively review your Microsoft licenses, you can identify any unused or unnecessary subscriptions. Even minor adjustments, like relocating licenses where they are really needed, can have a big impact on cost and productivity.

Matching licenses to requirements

Not everyone in your organisation needs to use every feature. It's essential to align licenses with team requirements, whether it's by their role, by department or by project. This removes any unnecessary spending. 

Consider renewal timing

The timing of upcoming renewals shouldn't be overlooked. It's all about thinking ahead. You have a clean sheet of paper at the renewal - every product quantity can be adjusted at a renewal.

Keep updated on licensing changes

Microsoft is frequently updating terms and pricing, so staying updated will ensure you stay informed and won't be hit with any surprises.

Use insights from your usage data

By knowing who uses what and how often, your organisation can uncover opportunities to optimise your Microsoft licenses. These granular data-driven insights can help match you with a better plan. 

Take a strategic approach

Microsoft negotiation demands you to step back and review the bigger picture. Always think strategically about your Microsoft licenses, and you may uncover ways to reduce costs while still giving your team the tools they need to succeed. 

Microsoft license negotiation services

Overspending on Microsoft licenses might be common, but it’s totally preventable with the right approach. If you proactively review your organisation's licensing, monitor usage, and align plans with actual business needs, you can significantly reduce costs while improving operational efficiency and compliance.

So, what’s the key to smarter Microsoft licensing? Professional guidance is the answer.

Keystone Negotiation’s team of independent Microsoft licensing experts provides independent advice and strategic insights to help your organisation optimise your Microsoft 365, Dynamics 365, Azure, and Unified Support agreements. With our proven methodology, extensive benchmarking data, and experience negotiating thousands of licenses, we deliver measurable savings and a guaranteed return on investment.

By leveraging Keystone Negotiation's Microsoft license advisory services and Microsoft license negotiation services, organisations can:

  • Avoid unnecessary spending and eliminate unused or underutilised licenses.
  • Uncover hidden savings opportunities that resellers or Microsoft may not highlight.
  • Ensure licenses are aligned with actual business needs for maximum efficiency.
  • Maintain compliance while optimising costs across Microsoft 365, Azure, and Unified Support agreements.

Take the first step toward smarter Microsoft licensing. Book a free 30-minute consultation with Keystone Negotiation today and discover how our experts can help your organisation optimise your Microsoft agreements. 

FAQs

Why do organisations often overspend on Microsoft licenses?

Overspending usually happens because Microsoft offers many plans, add-ons, and bundles, making it hard to choose the right combination. Organisations may pay for features they don’t need or overlook underutilised licenses. Professional guidance, like Keystone Negotiation’s Microsoft license advisory services, helps identify these inefficiencies and optimise spend.

How can I ensure my Microsoft licenses match my team’s needs?

Not every employee requires access to all Microsoft features. Aligning licenses with roles, departments, or projects ensures your organisation only pays for what’s actually needed. Experts can analyse usage patterns and suggest the most appropriate licensing mix to improve efficiency and reduce unnecessary costs.

How often should I review my Microsoft licenses?

Regular reviews are crucial. Ideally, organisations should audit licenses before renewals or major updates to Microsoft 365, Azure, or Dynamics 365. This helps uncover unused subscriptions, adjust plans, and prepare for changes in licensing terms. Microsoft licensing experts can streamline this process and provide data-driven recommendations.

Can professional Microsoft negotiation services really save money on Microsoft renewals?

Yes. Skilled negotiators understand Microsoft pricing models, renewal terms, and potential discounts. Keystone Negotiation has helped organisations achieve some of the largest discounts worldwide, uncover hidden savings, and secure a guaranteed ROI. Using Microsoft license negotiation services ensures your organisation maximises value while maintaining compliance and operational efficiency.