1. Run Quarterly Licence Audits
The Problem: Unused licences from departed employees or completed projects continue generating monthly charges.
The Solution: Implement quarterly audits instead of annual reviews.
What to Check:
- User login activity over the past 90 days
- Recent role changes affecting licence needs
- Seasonal workers whose access has ended
- Departmental restructuring impacts
Real Impact: Just 10 unused Business Standard licences cost £1,200 annually in waste.
2. Match Licences to Actual User Needs
The Solution: Apply role-based licensing strategy.
Smart Allocation:
- Executives: E5 for advanced analytics
- Finance/Legal: E3 plus compliance add-ons
- General staff: Business Standard or E3
- Frontline workers: F3 licences
Savings Example: Downgrading 50 users from E5 to E3 saves £16,800 annually.
3. Switch to a CSP Partner
The Problem: Buying direct from Microsoft means paying full retail prices with limited support.
The Solution: Use a Cloud Solution Provider like Qwantro for enterprise-level discounts.
CSP Benefits:
- 8-13% immediate savings on licensing
- Flexible monthly or annual billing
- UK-based technical support
- Ongoing licence optimisation
Real Savings: 200 E3 users save approximately £7,500 annually through CSP pricing.
4. Optimise Connected Azure Services
The Problem: Azure costs often get overlooked when focusing on Microsoft 365 licensing.
The Solution: Review Azure alongside your Microsoft 365 spend.
Quick Wins:
- Rightsize VMs: Reduce overprovisioned resources by 20-40%
- Apply Hybrid Benefit: Use existing Windows licences on Azure
- Purchase Reserved Instances: Lock in discounts for predictable workloads
- Optimise Storage Tiers: Move old data to cheaper storage
Key Point: Azure optimisation often delivers larger savings than Microsoft 365 licence adjustments.
5. Review Quarterly, Not Annually
The Problem: Annual reviews allow 11 months of potential waste to accumulate.
The Solution: Quarterly assessments to stay aligned with business changes.
Review Focus:
- Which features are actually being used
- Cost allocation across departments
- New Microsoft releases that replace third-party tools
- Upcoming business changes affecting user numbers
Success Story: One client reduced quarterly spend by £9,000 by reallocating unused E5 licences to new hires.
Take Action
Microsoft 365 cost optimisation isn't about cutting corners—it's about smart spending. These five strategies can deliver immediate savings whilst maintaining full functionality.
Ready to see your potential savings?
Book a
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Need help implementing these strategies?
Qwantro's Microsoft licensing specialists provide free assessments and ongoing optimisation for businesses.
