With Microsoft’s ecosystem expanding, businesses must get to grips with the right licensing structures to avoid spiralling costs.  

Renewal season is close. Microsoft has expanded its licence range and your estate is a patchwork of SKUs built over years. If you don’t review your licences before renewal, three things happen. You pay for seats and features you don’t need. You miss value from features you already own. You risk compliance gaps that create audit pain later. This is avoidable. A clear review now gives you predictable costs and the right tools for your people. 

A realistic scenario 

Let's say you scaled quickly last year. Licences were added in a hurry to keep projects moving. Renewal hits and you roll over what you had. Finance later flags material overspend. Security highlights unused protection features. Procurement asks why optimisation was not done. None of this is catastrophic. All of it is avoidable. The conversation lands on your desk. 

• Budget pressure. Avoidable spend crowds out investments you actually need. 

• Tool mismatch. People either lack capability or sit on features they never use. 

• Roadmap drift. Renewal is a chance to simplify and move forward. Without review, you stall. 

• Audit strain. Licence misalignment makes governance checks harder. 

• Reputation hit. Finance and leadership expect control. Renewal without review looks careless. 

Overspend patterns we see most often 

• Duplicate coverage. Users carry overlapping subscriptions. For example, an enterprise productivity suite plus standalone telephony add‑ons that a bundle already covers. 

• Wrong tiers for roles. Paying for top‑tier security and compliance for roles that need only core email and collaboration. 

• Idle add‑ons. Advanced compliance, analytics or phone features bought on good intent, never deployed. 

• Legacy SKUs lingering. Older plans remain active when newer bundles offer better value and simpler management. 

• Seasonal seats never reclaimed. Contractors or projects end but the licences stay. 

• Auto‑renew bias. Annual commitments are left untouched because no one wants to face the admin. 

Why it matters now 

Microsoft has expanded suites and add‑ons across the stack. Microsoft 365 E5 continues to bundle advanced security, compliance and analytics in one plan. For the right users, E5 can replace multiple point solutions and simplify the estate. For others, E3 plus targeted add‑ons is a cleaner fit. The decision is architectural. It needs a view of roles, risk, and roadmaps. If you do not review, you will miss opportunities to consolidate, reduce complexity, and negotiate with confidence. 

This is where people get caught out 

• Assuming last year’s plan still fits. Estates change. Teams change. Risk changes. 

• Thinking “we’ll optimise later”. Later rarely comes. Renewal fixes cost and commitments for the term. 

• Only checking seat counts. You need to assess features, enablement and policy alignment, not just numbers. 

• Ignoring new bundles. New SKUs can simplify the stack. They only help if you switch with intent. 

• Underestimating deployment effort. Buying features without a rollout plan leaves value on the shelf. 

Who is exposed?

• Heads of IT. Accountable for spend, compliance and service continuity. 

• Finance. Responsible for cost control and forecasting. 

• Security and compliance. Dependent on the right features being licensed and enabled. 

• End users. Impacted by either missing capability or confusing duplication. 

What happens if you don’t renew at all? 

• Service disruption. Access to apps and services degrades or stops once the grace period ends. 

• Data access limits. Users can lose access to mailboxes, files and collaboration spaces until licences are reinstated. 

• Security posture weakens. Protection and monitoring features lapse. Alerts go quiet when you need them loud. 

• Compliance exposure. Retention, eDiscovery and audit tools may stop enforcing policy. 

• Recovery pain. Restoring access and reapplying policies after a lapse is slower and riskier than a planned renewal. 

Check your term dates now. Renewal cycles are often annual under CSP and can vary by subscription. Do not assume every SKU renews together. Consolidate dates if possible. Set calendar reminders three months out. That lead time gives you room to audit, plan, and negotiate without pressure. 

What to do next 

You can work through the checklist yourself. It is the right approach. It is also heavy lifting when you are already managing projects, incidents and Q1 deliverables. This is where a credible Microsoft solutions partner helps. 

A good partner will not try to sell you more. They will show you where the savings are. They will identify what is most cost effective for your roles and risk. They will help you cut through the sprawl and turn choices into a clear plan. 

Share your renewal dates and a quick view of your estate. Ask for a usage audit and a role‑to‑licence map. Use the checklist to set scope. Then let our Microsoft licensing experts do the legwork. The outcome is simple. A clean, cost‑effective plan for 2026. Less uncertainty. More control. And time back for the work only you can do.