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Microsoft 365 licensing — you are probably paying for people who left

A licensing review reclaims unused seats, right-sizes plans to what people actually use, and frequently finds add-ons you are buying that a better base plan includes.

16+ years

Brisbane-based since 2010

1,500+

Employees supported across SEQ

Named engineers

The same team every time

Essential Eight aligned

Microsoft Partner

A review of what you are licensed for against what is actually used — reclaiming unused seats, right-sizing plans and removing add-ons a better base plan includes.

Why licensing drifts

Nobody sets out to overspend on Microsoft 365. It happens because licences are assigned constantly and reviewed almost never.

Someone joins, they get a licence. Someone leaves, their account is disabled — which stops them signing in and does nothing to the billing. A team needs a shared address, so someone creates a user account for it rather than a shared mailbox. A security requirement comes up, so a third-party product is purchased without anyone checking whether a different base plan includes it.

Each decision is reasonable in isolation. Two years of them produces a bill nobody can explain.

What a review finds

Licences on departed staff. The most common single item, and often the largest. Disabling an account does not release its licence.

Over-specified plans. Everyone on the same plan regardless of role. Warehouse, retail and field staff who need email and Teams on a phone are frequently licensed identically to office knowledge workers.

Paid licences on shared mailboxes. info@, accounts@, admin@ set up as full user accounts. Shared mailboxes are free up to a generous size.

Duplicate spend. A business on Business Standard paying separately for mobile device management, advanced email security, or backup — where Business Premium would have included the first two for less than the combined total.

Legacy plans. Subscriptions from earlier product generations still running alongside current ones, occasionally for people who have both.

The Standard versus Premium question

This is the single most consequential licensing decision for most Australian small businesses, and it is worth stating plainly.

Business Standard gives you the productivity applications. Business Premium adds the security and management layer — Intune for device management and compliance, conditional access for identity protection, and advanced email protection.

Businesses on Standard that have bought third-party tooling to fill those gaps are usually paying more in total, managing more products, and getting a less coherent result than Premium would have provided. It is worth modelling before your next renewal.

Timing matters

Licence changes interact with your billing cycle and any annual commitment. Reducing seat count mid-term on an annual commitment generally is not possible, so the review is most valuable shortly before a renewal date rather than shortly after one.

We record renewal dates as part of the review, so the next decision happens with time to consider it rather than as a notification that something has already renewed.

Our position on selling you licences

We can supply licences and many clients prefer a single point of contact for support and billing. You are equally free to buy direct.

Worth saying: an IT provider whose licensing advice consistently increases what you buy from them has an obvious conflict. Our reviews document the reasoning either way, and they frequently recommend spending less — reclaiming seats and consolidating plans are the two most common outcomes.

What you get with JTIT

Concrete deliverables, not vague promises.

Unused seats reclaimed

Licences still assigned to departed staff are the most common finding, and they have often been billing for a year or more.

Plans matched to actual use

Not everyone needs the same plan. Frontline and shift staff who use email and Teams on a phone do not need what a knowledge worker needs.

Add-ons you already own

Businesses on Business Standard frequently buy third-party MDM, backup or security tooling that Business Premium would have included for less.

Annual versus monthly understood

Annual commitment is cheaper per seat and inflexible. For a business with seasonal headcount, that trade needs deciding rather than defaulting.

Shared mailboxes instead of licences

Shared mailboxes are free up to a generous size. Paying for a full licence for info@ or accounts@ is a common and completely avoidable cost.

Reviewed periodically

Licensing drifts with headcount. A review once and never again means the same waste accumulates over the following two years.

How it works

A predictable, no-surprises process.

  1. 01

    Inventory what you hold

    Every subscription, seat count, assignment and renewal date, including add-ons purchased separately and any legacy plans still running.

  2. 02

    Compare against actual usage

    Sign-in and service usage data showing which licensed accounts are dormant and which features are genuinely being used.

  3. 03

    Model the alternatives

    What the same capability costs on different plan mixes, including whether a higher base plan removes separately purchased tooling.

  4. 04

    Implement and diarise

    Changes made at the right point in the billing cycle, with renewal dates recorded so the next decision is not made under time pressure.

Frequently asked questions

How much do businesses typically save?

It varies far too much to quote a percentage honestly, and any provider giving you one before looking at your tenant is guessing. What is consistent is where the savings come from: licences assigned to departed staff, over-specified plans for roles that do not need them, paid licences on shared mailboxes, and add-on products duplicating something an existing or slightly higher plan already includes. Whether that adds to a little or a lot depends entirely on how long it has been since anyone looked.

What is the difference between Business Standard and Business Premium?

Business Premium adds the security and device management layer: Intune for device management, Entra ID P1 for conditional access, Defender for Office 365 for advanced email protection, and Azure Information Protection. Business Standard has the productivity applications without those. A business on Standard that is separately paying for mobile device management or advanced email security is very likely paying more in total than Premium would cost, and getting a less integrated result.

Do we need a licence for shared mailboxes?

Not for a standard shared mailbox up to Microsoft's size limit, which is generous. Paying a full user licence for info@, accounts@ or sales@ is a common finding and completely avoidable. A licence is only needed if the mailbox exceeds the limit or requires features such as its own archive.

Should we commit annually?

Annual commitment is meaningfully cheaper per seat and locks the count for the term. If your headcount is stable, take it. If you run seasonal staff or expect to shrink, the flexibility of monthly may be worth the premium. The mistake is defaulting into one without deciding — most businesses end up on whatever was selected during initial setup years ago.

Can you buy our licences through you?

We can, and you should also feel free to buy direct from Microsoft or another partner. Buying through your IT provider generally means one point of contact for support and billing, which most clients prefer. Where a provider's licensing recommendations conveniently always increase what you buy from them, that is worth noticing — which is why our reviews document the reasoning, including where we recommend reducing spend.

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