Optimize Your MS365 Licensing Strategy

Dec 20, 2023

The tools you choose for your business operations play a crucial role in your organization’s success. With over 1 million companies using it worldwide, it’s easy to see why Microsoft 365 stands head and shoulders above the crowd. 

It’s truly a comprehensive suite that offers a mix of office applications, collaborative tools, and security features that are vital for any business operating in today’s interconnected world.

However, the challenge with Microsoft 365 often lies in navigating the complex world of its licensing. With a range of options, each with unique features and pricing, businesses often find themselves over-licensed, under-licensed, or mis-licensed, leading to financial and operational repercussions.

This post aims to simplify this process with an overview of MS365 managed services. No matter if you’re new to MS365 or refining your existing setup, it’s time to unlock MS365’s full potential by aligning licenses with your organizational needs, paving the way for cost-efficiency and enhanced operations.



Strategic Guidance for Licensing Decisions

When considering the Internal vs. External Consultative Approach for MS365 licensing, it’s essential to weigh the strengths and limitations of each, especially when it comes to MS365 Managed Services. 

Internal Licensing Guidance

Internal licensing guidance leverages your organization’s in-depth understanding of its unique needs and processes. Your internal team, already familiar with the day-to-day operations, can provide valuable insights into how MS365 can be customized to enhance efficiency and collaboration. 

However, this approach may lack the wide-ranging expertise and objective perspective that an external MS365 Managed Services provider offers.

External Licensing Guidance

On the other hand, opting for MS365 Managed Services through a third-party brings a wealth of specialized knowledge and experience. These providers stay abreast of the latest MS365 developments, offering strategic advice that goes beyond basic licensing optimization. 

They can identify opportunities for leveraging MS365 tools in ways that might be overlooked internally, ensuring your organization not only optimizes costs but also maximizes the suite’s capabilities to the fullest. 

Moreover, external consultants can provide ongoing management and support, keeping your MS365 environment aligned with evolving business needs and compliance requirements. This approach, while potentially more costly upfront, can offer long-term value through enhanced efficiency, security, and innovation.



Understanding Microsoft 365 Licensing Options

As mentioned in the introduction, Microsoft 365 presents various licensing levels. Each of which caters to different organizational needs. Differentiating between E1, Business Premium, E3, and E5 licenses is crucial for informed decisions. Here’s a rundown of who benefits from what license:

  • E1: Ideal for organizations needing basic email and file-sharing capabilities.
  • Business Premium: Tailored for small to medium-sized businesses requiring more comprehensive tools and security features.
  • E3: Suitable for businesses needing a broad range of features, including enhanced security and compliance tools.
  • E5: The most extensive option, offering advanced security, analytics, and voice capabilities.

Choosing the right license for Microsoft 365 hinges on various factors like your organization’s size, budget, and unique operational needs. However, navigating these choices can be complex, which is where the role of MS365 Managed Services becomes crucial. 

These services offer specialized expertise in assessing and aligning your organizational requirements with the appropriate Microsoft 365 license. They take into account not just your current operations, but also your growth trajectory and future needs. MS365 Managed Services can provide a tailored solution that maximizes your investment in Microsoft 365.


Avoid Common Pitfalls


Avoiding Common Pitfalls with MS365 Managed Services

Navigating software licensing can be fraught with challenges, where over-licensing inflates costs and under-licensing hinders productivity and risks compliance. MS365 Managed Services offer a tailored solution to these common pitfalls, aligning precisely with your organization’s specific needs. Here are some other issues to avoid:

  1. Neglecting User Training and Adoption: Simply having the right licenses is not enough. Employees must be trained and encouraged to use MS365 tools effectively. Failure to invest in proper training can lead to underutilization of the services you’re paying for.
  2. Ignoring Security and Compliance Features: MS365 comes with robust security and compliance tools. Overlooking these features can expose your organization to data breaches and regulatory non-compliance.
  3. Failing to Regularly Review and Update Licensing Strategy: As your business evolves, so do your software needs. Not regularly reviewing and updating your licensing strategy can lead to inefficiencies and unaddressed new requirements.
  4. Lack of Customization and Integration: MS365 offers extensive customization and integration capabilities. Not leveraging these to suit your specific business processes can result in a less efficient work environment.
  5. Underestimating the Complexity of Migration and Integration: Migrating to MS365 or integrating it with existing systems can be complex. Underestimating this can lead to prolonged downtime, data loss, or incomplete integration.
  6. Not Utilizing Analytics and Reporting Tools: MS365 provides powerful analytics and reporting tools. Not using these tools can mean missing out on valuable insights into employee productivity and application performance.
  7. Insufficient Focus on Data Backup and Recovery: While MS365 has data protection measures, it’s crucial to have a robust backup and recovery strategy to prevent data loss in case of an outage or cyber attack.
  8. Overlooking the Need for Ongoing Support: Continuous technical support is vital for addressing issues promptly. Without adequate support, minor issues can escalate, impacting productivity.
  9. Choosing Inappropriate License Tiers: Opting for license tiers that don’t match user roles and requirements can result in unnecessary expenses or lack of necessary features for some users.
  10. Not Planning for Scalability: As your organization grows, your MS365 needs will change. Failing to plan for scalability can lead to operational bottlenecks.

Avoiding these pitfalls requires a strategic approach to MS365 licensing and management, often facilitated by leveraging the expertise provided through MS365 Managed Services.


MS365 Managed Services Guide


Looking Toward the Future with Copilot AI

When it comes to utilizing managed services, we’d be remiss if we failed to mention MS365’s newest tool, Copilot AI. Microsoft Dynamics 365 Copilot introduces a significant shift in managed services, especially in CRM and ERP systems, by embedding next-generation AI to improve various business functions. It aims to reduce repetitive tasks, enhancing work efficiency. 

At $30 per user, per month, only you can say for certain whether Copilot AI is a worthy addition to your MS365 suite. Key functionalities include:

  • Aiding sales professionals in administrative tasks
  • Assisting customer service agents in query resolution
  • Simplifying marketing workflows
  • Streamlining online commerce in Business Central
  • Offering proactive insights into supply chain management
  • And more! 

This AI integration in CRM and ERP systems marks a transformative step in managed services, focusing on improving both customer and employee experiences and operational efficiency.


Optimizing Microsoft 365


Optimizing Microsoft 365 with MS365 Managed Services

As you continue to navigate through the complex landscape of Microsoft 365, remember that this journey is about aligning your choices with the unique needs and goals of your organization.

Embracing a strategic, well-informed, and adaptable approach, especially through the use of MS365 Managed Services, can lead not just to significant cost savings, but also to improvements in operational efficiency, productivity, and compliance.

Its time to get serious about your business' IT!

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