The Departmental Divide
IT teams focus on: Functionality, user support, technical requirements Finance teams focus on: Budget compliance, vendor management, cost control The gap: No one owns licence efficiency and optimisation
Result: £200,000+ annual Microsoft investments managed without financial rigour applied to equivalent business expenses.
FinOps: The Bridge Between Teams
Financial Operations methodology creates shared accountability between IT, finance, and business operations for software licensing efficiency.
Three core principles:
- Visibility: Everyone understands licence costs and allocation
- Accountability: Departments own their Microsoft spending
- Optimisation: Systematic efficiency improvement processes
What FinOps Looks Like in Practice
Monthly Cost Visibility
Instead of annual IT budgets, departments receive monthly licence cost reports showing:
- Who has which licences and why
- Feature utilisation rates across different teams
- Optimisation opportunities and cost reduction potential
- Budget variance and trending analysis
Quarterly Optimisation Reviews
Month 1: Data collection and usage analysis
Month 2: Right-sizing recommendations and planning
Month 3:
Implementation and impact measurement
This cycle prevents year-long waste accumulation and enables agile responses to business changes.
Cross-Functional Governance
Licence Review Board: IT, finance, and business representatives meeting monthly
Departmental ownership: Clear responsibility for licence costs and efficiency
Strategic alignment: Technology investments tied to business outcomes
Continuous improvement: Regular process refinement and optimisation
The Cultural Shift
FinOps for Microsoft licensing requires cultural change:
Before: Licensing managed as technical overhead
After: Licences treated as strategic financial assets
Before: Annual reviews allowing waste accumulation
After: Continuous optimisation and efficiency focus
Before: IT decisions made without cost consideration
After: Cross-functional collaboration on technology investments
Implementation Success Factors
- Executive sponsorship: Leadership driving cross-departmental collaboration
- Clear accountability: Departmental ownership of licence costs
- Regular rhythms: Monthly reporting and quarterly optimisation cycles
- Technical expertise: Understanding Microsoft licensing options and alternatives
- Measurement focus: Tracking efficiency improvements and cost reduction
Getting Started
Microsoft licensing FinOps delivers ROI within 2-3 months:
Phase 1: Establish cost visibility and departmental allocation
Phase 2: Create accountability through reporting and governance
Phase 3: Implement systematic optimisation processes
Most organisations discover 20-30% immediate cost reduction opportunities through this approach.
Ready to transform your Microsoft licensing into a strategic asset? Get in touch with of our specialists for a free assessment today.
