Mastering Microsoft licensing: our top tips for M365 and Azure cost efficiency

1. Audit what you’re actually using

Many organisations purchase licences and cloud services based on projected needs but usage doesn’t always follow. Regularly reviewing what’s in use vs. what’s assigned is the first step toward cutting waste.

2. Right-size your licensing

Avoid over-licensing by aligning users with the most appropriate licence tiers. Many users may not need full E5 capabilities, or could be grouped under a shared resource model.

3. Take advantage of Azure cost management tools

Azure offers built-in tools like cost analysis and budgeting. Use these proactively to identify spend trends and set up alerts before overages happen.

4. Monitor and reclaim inactive resources

Virtual machines, storage accounts, and unused services can keep ticking up charges. Build a governance model to flag and decommission stale resources regularly.

5. Plan ahead with reserved instances

For predictable workloads, Azure Reserved Instances offer deep discounts over pay-as-you-go pricing. The key is planning: commitment equals savings.

Bonus: Stay audit-ready, always

Optimising cost is only part of the equation. Being audit-ready not only reduces risk, but often reveals areas of over-licensing and inefficiency.

Start saving smarter now 

Optimising Microsoft 365 and Azure isn’t a one-off task, it’s an ongoing strategy. Whether you’re looking to reduce costs, streamline your tech stack, or improve compliance, these best practices can help you take control.