At The Outlier Team, we help businesses work smarter. Technology should simplify operations, not drain your budget. Yet many organizations overspend on Microsoft 365 licenses and add-ons they don’t fully use.
The good news? You can fix this. By understanding what you already have and making smarter choices with security, productivity, collaboration, and Copilot features, you’ll save money and boost productivity. Let’s break it down.
What You Already Get with Microsoft 365
Before you pay for premium features, know what’s included in your plan. Even without add-ons, Microsoft 365 gives you strong security, productivity, collaboration, and AI tools:
- Identity and Access Management: Entra ID (formerly Azure AD), multi-factor authentication, single sign-on, and conditional access.
- Threat Protection: Built-in email scanning, phishing protection through Microsoft Defender, and safeguards for attachments and links.
- Compliance Tools: Depending on your plan, you may have data loss prevention (DLP), auditing, and reporting features.
- Collaboration and Productivity Tools: Microsoft Teams is included with most M365 plans, allowing you to host video meetings, chat, and collaborate on files. To Do is also included for personal to-do lists, while Planner is included for collaborative to-do lists and project planning and management.
Understanding these baseline features helps you avoid paying for duplicates. It also ensures you only upgrade when it truly adds value.
Where Overspending Happens
Most waste isn’t obvious. It hides in everyday processes. Here are the common culprits:
1. Upgrading Too Quickly
Jumping to E3 or E5 plans or adding premium features for every user often means paying for tools that sit unused.
2. Idle Licenses
Employees change roles, go on leave, or leave the company. If licenses stay active, your budget takes a hit.
3. Offboarding Mistakes
Deleting a user doesn’t reclaim their license. Unless you unassign it manually or automate the process, you’ll keep paying.
4. Duplicate Features
Microsoft 365 doesn’t flag overlaps. For example, assigning E3 and a standalone Defender license to the same user means you’re paying twice.
How to Stop the Waste
Here’s how to take control and reduce spend:
Downgrade Light Users
Not everyone needs E3 or E5. If someone only uses email and Teams, move them to E1. If your team is small, use Business Standard and Business Premium licensing. Use usage reports to make informed decisions.
Automate Offboarding
Set up systems, processes, and workflows. When someone leaves get unassigned.
Consolidate Overlapping Tools
Review your security and compliance stack. If Microsoft 365 already covers a feature, cancel the duplicate.
Check Shared Mailboxes
Don’t assign premium licenses to shared or inactive mailboxes. Convert them to free shared mailboxes or archive them.
Enable Alerts and Governance
Set up license expiration alerts. Track inactivity. Flag licenses for review before renewal dates.
Make Microsoft 365 Work for You
Don’t let unused licenses drain your resources. Match tools to actual business needs. When you do, you save money, simplify management, and improve productivity.
Optimizing Microsoft 365 isn’t about buying more; it’s about using what you have wisely.
Ready to make smarter technology decisions? Connect with us at contact@theoutlierteam.com and let’s start optimizing your Microsoft 365 environment today.