Is your business using Office 365? If so, you’re not alone, many companies have shifted from on-premise server technology to cloud-based solutions, such as Microsoft Office 365. These cloud solutions offer excellent collaboration tools and the flexibility to work from virtually anywhere. However, there’s a hidden cost that could be silently eating away at your budget: overpaying for your Office 365 subscription.
As a business owner or IT administrator, it’s important to regularly assess your subscription costs to ensure you’re not paying more than necessary.
Hidden Costs in Office 365 Subscriptions
Many businesses unknowingly continue to pay for licenses they don’t need. If you manage your Office 365 environment internally, you might have user accounts for employees who no longer work for the company. Often, these accounts remain active simply because you want to refer back to old emails or retain access to past documents. However, keeping these accounts open for this reason isn’t necessary and can be a costly mistake.
Office 365 offers a simple solution: you can convert these user accounts to shared mailboxes. By doing so, you’ll free up the license, saving you the monthly subscription cost for each inactive user. This is just one example of how small changes can lead to significant savings.
Tracking Product Usage with Office 365 Reports
Did you know that Office 365 provides built-in reports that show how frequently different products and services are being used within your organisation? These reports, available in the Office 365 admin portal, can give you insights into which licenses are being underutilised. With this data, it’s easy to identify if certain users don’t need the level of access they currently have.
For instance, if some users are not using advanced features like SharePoint or Teams, they may be able to downgrade to a less expensive license, such as Office 365 Business Essentials, without losing functionality. Regularly reviewing these reports is a smart way to optimise your subscription and avoid paying for unused features.
Are You Paying a Markup to a Reseller?
If you’re purchasing your Office 365 licenses through a third-party reseller, you might be paying more than you need to. Many IT companies, including resellers charge a markup on the cost of Office 365 licenses. While they justify this additional cost as a service fee or management fee, this markup can add up over time, especially for large organisations with many users.
At Commercial Networks, we are a Microsoft Silver Cloud Partner, and we never charge more than the direct cost from Microsoft for your monthly subscription. By working with us, you can enjoy the same Microsoft services, but at a lower price. As a cloud service provider, we can handle all the administration directly with Microsoft, eliminating the need for a middleman and saving you money.
The Risks of Over-Licensing
One of the most common issues businesses face with Office 365 subscriptions is over-licensing. With on-premise solutions, the risk of under-licensing was much higher because each user required a physical license. However, in the cloud, businesses are more likely to over-license, especially when using resellers who upsell unnecessary features.
For example, Microsoft’s E3 licenses include a range of features, such as locally installed applications and advanced security tools. While these features are valuable for many businesses, they may be excessive for certain employees. If only 40% of your workforce requires full E3 licenses, you might be overpaying for the remaining 60% who only need basic services like email. This is a perfect example of how businesses can scale back and save on their subscription costs by aligning licenses with actual usage.
How to Start Saving on Office 365
The good news is that saving money on your Office 365 subscription is easier than you think. Start by conducting a thorough review of your current licenses and usage patterns. Look for inactive user accounts, underutilized features, and opportunities to downgrade to more affordable plans.
If you’re unsure where to begin, consider reaching out to a trusted IT provider. At Commercial Networks, we offer a free Office 365 subscription review. We’ll analyse your current setup, identify potential savings, and help you make the necessary adjustments to lower your monthly costs.
Additionally, if you’re currently working with a reseller that is marking up your subscription, we can help you switch to direct billing with Microsoft, saving you money without sacrificing support or service.
Final Thoughts
Office 365 is a powerful suite of tools that can significantly enhance your business’s productivity and collaboration. However, it’s important to regularly review your subscription to ensure you’re not paying more than you need to. By taking simple steps like converting inactive user accounts to shared mailboxes, reviewing usage reports, and switching to direct billing, you can start saving money today.
To find out more about how to optimize your Office 365 subscription and avoid overpaying, contact us today for a free consultation. Our team is ready to help you make the most of your investment in Office 365 and ensure you’re only paying for what you actually use, check out our Microsoft Office 365 page.
Call us on 0333 444 3455 or email on sales@cnltd.co.uk.
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