Get a handle on Microsoft licensing costs. Here's how.

Microsoft licenses can be a complex and often underestimated expense for many organizations. It seems simple: purchase licenses and use whatever you want—that’s how it works. But without a clear overview and a strategic approach, costs can quickly spiral out of control. Especially in times of rising prices, when CFOs and IT managers are struggling with budgets, it’s essential to focus on optimization. Where are the opportunities to save, and more importantly: how can you strategically optimize your license portfolio for the future? The answer is simple: through specialized knowledge and data-driven research, you can gain control over your licensing costs and not only save money now but also align your licenses with business needs for years to come.

The Hidden Costs of Microsoft Licenses: Don’t Pay for What You Don’t Use

Many organizations purchase Microsoft licenses based on their initial needs but often don’t use everything they’ve acquired as part of their licensing package. This leads to a situation where you’re paying (much) more than necessary. A classic example is when an organization purchases a Microsoft 365 license for every employee, but only 30% of employees use it to its full extent. For example, there may be a group of employees who almost never send emails, or it may turn out that making external calls via Teams is included in the license package even though no one is aware of this or uses it. But you’re still paying for it. These kinds of inefficiencies are more common than you might think, and they’re often hidden from the IT department or the CFO. And make no mistake—all too often, this translates to potential savings of tens, and sometimes even hundreds, of thousands of euros per year. It’s not easy to identify and resolve these kinds of inefficiencies without specialized knowledge of the various Microsoft licensing models, such as EA (Enterprise Agreement) and CSP (Cloud Solution Provider).

Real-world example:
A client in the healthcare sector discovered through our license analysis that they were paying €150,000 per year for one type of Microsoft license, 40% of which remained unused. After a thorough evaluation of their license usage, we proposed switching to a different license type for a large portion of the employees who were using only limited functionality. The result? Annual savings of more than €50,000, without compromising their productivity or compliance.

From Reactive to Proactive LicenseManagement
Controlling license costs requires not only insight but also action. With the right strategy, you can achieve preventive savings by:

• Smart license analytics: By examining the actual usage of each license, we can identify where you can save. This might mean scaling back unnecessary licenses or selecting the right license version for specific departments.
• Proactive monitoring: By using smart monitoring tools, you can identify inefficiencies early on, such as unused licenses or over-licensing.
• Optimal license scaling: By flexibly adjusting licenses to actual needs, you can achieve significant annual savings.

Strategic License Management: The Importance of Being Well-Prepared for Renewals

Managing licenses isn’t just about aligning with current usage—it’s also about planning for the future. When renewing license contracts, there are often opportunities to combine licenses more effectively and realign them with the organization’s changing needs. The clearer your plans are for the coming years, the stronger your position will be during license renewals and purchases.

Real-world example:
A client in the business services sector approached us regarding their Microsoft license renewal. They were unaware of the strategic opportunitiesofferedby the renewal process. We worked together to determine their licensing needs for the coming years, taking into account their growing cloud usage and plans to adopt new technologies such as Microsoft Copilot. Instead of simply renewing their existing contracts, we helped them bundle licenses in a way that was both cost-effective and future-proof. This resulted in an 18% savings on their total licensing costs, without compromising on the necessary functionality or flexibility for future changes.

At InSpark, we not only help you identify savings opportunities, but we also serve as your strategic partner when it comes to planning your licensing needs for the coming years. We do this by:

• Looking ahead and preparing: Together with you, we assess your organization’s expected growth and the licensing needs that come with it. Whether you’re transitioning to new technologies like Microsoft Copilot or want to adjust your licenses to better align with your business strategy, we ensure you don’t incur unnecessary costs.
• Smart licensing combinations: We help you determine which licenses you’ll truly need in the coming years and advise on smart licensing combinations that are both cost-effective and future-proof.
• Support with contract negotiations: We assist you during negotiations for new licensing contracts. Thanks to our expertise in Microsoft licensing models, we can secure the best terms and discounts.

Why InSpark?