Ian Nicholls
Effectively reviewing and managing Microsoft licenses is essential for any organisation using Office 365.
The Office 365 Admin Portal offers a centralised platform for administrators to monitor and optimise license usage. Understanding the various licenses and options is key to providing a comprehensive analysis.
Here are some key benefits:
Cost Efficiency
Regularly reviewing licenses helps identify unused or underutilised licenses, allowing organisations to reassign or cancel them based on the license agreement and term. This process can also identify employees who have left, enabling their licenses to be reassigned or accounts that only need an Exchange license instead of a full M365 E5/E5 license.
Compliance and Audit Readiness
Keeping accurate records of license usage ensures compliance with Microsoft’s licensing agreements. For example, E5 licenses, especially for security, can be activated at the tenant level, causing a compliance issue if all employees receive the benefits without being properly licensed.
Optimised Resource Allocation
By understanding which licenses are in use and by whom, administrators can allocate resources more effectively. This ensures that employees or contractors have access to necessary tools for their roles. Often, admin accounts or contractors may be assigned full licenses unnecessarily. Dynamics 365 is another area where analysing user licenses can lead to cost savings through ‘attach’ licenses where appropriate.
Enhanced Security
Regular license reviews can help identify and revoke licenses assigned to former employees or inactive accounts, reducing the risk of unauthorised access to company data. For instance, an employee’s license could be downgraded to an Exchange Online Plan 2 account until their email is archived, freeing up the full license for a new hire and reducing the risks.
Improved Productivity
Ensuring that all employees have the appropriate licenses for their roles can enhance productivity. Employees will have access to the necessary tools and features, enabling them to work more efficiently. For example, if an M365 E3 license is in use, additional features like Power BI Pro, Teams Phone or Visio may be needed.
Strategic Planning
License reviews provide valuable insights into usage patterns and trends. This information can inform strategic decisions, such as scaling up or down based on organisation needs, and planning for future license purchases. When considering an upgrade to the E5 license, analysing requirements and implementation plans is crucial. The E5 license can be segmented to purchase only the necessary features.
Every organisation is unique, and licensing needs can vary. Consulting with a Microsoft partner like The SAM Club can provide a customised approach to managing licenses effectively based on your business’s specific needs. Contact us at info@thesamclub.co.uk to learn more about our service.