Microsoft 365 Licenses Cost Optimization

Working with organizations of all sizes for the past 3 years, we recommend following 6 Best Practices for Microsoft 365 License Cost Optimization & Management.

1️⃣ Regular License Audits
⭐ Conduct monthly reviews to identify inactive, never-logged-in, and disabled users.
⭐ Reclaim licenses from employees who have left the organization.
2️⃣ Use Automated License Assignment
⭐ Implement auto-assignment rules based on user roles to avoid over-provisioning.
⭐ Use group-based licensing to streamline provisioning.
3️⃣ Optimize License Types
⭐ Downgrade users from E5/E3 to lower-tier licenses (F1 or Business Standard) if advanced features aren’t needed.
⭐ Use shared mailboxes instead of assigning full licenses to inactive email accounts.
4️⃣ Implement a License Reclamation Policy
⭐ Set automated workflows to reclaim licenses after a defined period of inactivity.
⭐ Notify users and managers before license revocation.
5️⃣ Leverage Microsoft 365 Usage Analytics
⭐ Use Power BI reports, cloud management platform or the Microsoft 365 Admin Center to monitor license usage.
⭐ Identify underutilized services and optimize assignments.
6️⃣ Negotiate Enterprise Agreements
⭐ If you have bulk licensing needs, negotiate with Microsoft for better pricing.
⭐ Monitor license renewals and adjust based on actual usage trends.

OfficeBoard by Loves Cloud provides you a platform to manage and optimize Microsoft 365 licensing costs continuously and efficiently. You can immediately find out $$ savings available for your organization once you onboard.

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