Microsoft 365 licensing is a notoriously complex and ever-changing domain. Many organizations struggle with questions like: Do we have the right licenses for each user? Are we overspending on unused features? Are we prepared for Microsoft’s next price increase or an audit? A Microsoft 365 Licensing Consultation is designed to answer these questions. It’s a comprehensive engagement where licensing experts analyze your environment and provide a clear roadmap to optimize your licenses – cutting costs, ensuring compliance, and aligning your investments with your business needs.
Below, we break down seven key themes that such a consultation addresses, and what IT decision-makers and procurement professionals can expect to gain from it. We’ll also summarize the core benefits and deliverables you receive (see table at the end).
Typical Savings & What to Expect
| Topic | Figure | What it means |
|---|---|---|
| Typical Savings | 15–20% less spend | Average reduction in Microsoft 365 licensing costs through right-sizing and waste elimination. |
| Upcoming Price Hike | 8–33% increase | Microsoft 365 plan price rises from July 2026 (e.g. M365 E3 from $36 to $39 per user, +8.3%). |
| Partner Perks | Up to 35% off | Discounts on new Microsoft licenses (e.g. Copilot AI add-ons) available via certified partners. |
Key Cost-Saving Strategies
License Right-Sizing
- Match each user’s license to their actual role and usage.
- Downgrade users from premium SKUs (e.g., E5) to more appropriate plans (e.g., E3 or F3) when advanced features aren’t needed.
Eliminate Obvious & Hidden Waste
- Reclaim unassigned or inactive licenses (e.g., for former employees).
- Identify users with expensive licenses who only use basic features.
Consolidate Redundant Tools
- Remove third-party tools that duplicate Microsoft 365 capabilities (e.g., security, conferencing, file sharing).
- Leverage built-in Microsoft features to reduce external software spend.
Utilize Microsoft Promotions & Partner Discounts
- Take advantage of limited-time offers and partner-exclusive discounts (e.g., up to 35% off Copilot bundles).
- Align purchases with Microsoft’s promotional calendar.
Proactive Renewal Planning
- Forecast licensing needs and costs ahead of renewals.
- Renew early to lock in current pricing and avoid upcoming price hikes (e.g., July 2026 increases).
Optimize Add-On Usage
- Replace expensive bundles with targeted add-ons—or vice versa—based on actual feature usage.
- Avoid paying for overlapping or unused add-ons.
Implement Governance & Ongoing Optimization
- Establish quarterly reviews and license attestation processes.
- Monitor usage trends to prevent future sprawl and maintain savings.
The table below summarizes the key benefits and deliverables you receive from a Microsoft 365 licensing consultation:
| Key Benefit / Deliverable | Description |
|---|---|
| Comprehensive License & Usage Report | In-depth analysis of your current Microsoft 365 licenses versus usage. Provides a clear inventory of all licenses, how many are assigned vs. unassigned, and detailed usage metrics per license SKU. Crucially, it includes a cost analysis showing your current spend by license and a model of optimized costs – highlighting where you’re overspending and what you could save by adjusting. This report turns raw data into actionable insights and gives you hard numbers to justify any changes. |
| Rightsizing & Optimization Plan | A prioritized action plan to right-size your licensing. It spells out which licenses to reclaim, downgrade, or reallocate to eliminate waste. Each recommendation is backed by usage findings and serves as a clear execution roadmap for immediate savings. |
| Future-State Licensing Roadmap | A forward-looking licensing strategy aligned to your organization’s growth, upcoming projects, and initiatives such as Teams Phone or AI adoption. Ensures licensing decisions support future needs, not just today’s environment. |
| Security & Compliance Recommendations | Guidance on strengthening security and compliance using Microsoft 365 licensing. Highlights unused security features you already own and recommends targeted license adjustments where necessary—without compromising compliance. |
| Renewal & Cost Management Strategy | A structured plan for managing renewals and forecasting future Microsoft 365 costs. Includes mitigation strategies for price increases and ensures predictable budgeting with no renewal surprises. |
| Executive Summary & Ongoing Support | An executive-ready summary of findings, savings, and recommendations, plus options for ongoing optimization support. Ensures long-term value with a trusted Microsoft licensing advisor. |
1. Microsoft 365 Licensing Complexity & Clarity
The Challenge: Microsoft’s licensing ecosystem is confusing, constantly changing, and difficult to manage. There are dozens of SKUs (E3, E5, F3, Business plans, add-ons, etc.), multiple purchase programs (Enterprise Agreement, CSP/New Commerce Experience, etc.), and frequent product name or feature changes. It’s easy for organizations to lose track of what they’ve bought versus what they actually use.
How the Consultation Helps: The first benefit of a licensing consultation is clarity. Experts perform a deep-dive assessment to demystify Microsoft’s licensing models and SKUs, explaining in plain terms what each license includes. They clarify your entitlements and use rights under various programs (EA, NCE, CSP, etc.). By reviewing your current contracts and subscriptions, the consultant will help you understand exactly what you own versus what you need. This often uncovers situations where you might have more capability than necessary for certain users, or overlapping subscriptions. For example, many companies discover they are paying for third-party tools that replicate features their Microsoft 365 licenses already provide.
In short, you come away with a customized licensing roadmap for your organization that cuts through the confusion. After the consultation, decision-makers gain confidence that they fully grasp their Microsoft 365 licensing landscape and options. As one competitor aptly put it, “Licensing confusion” is replaced with a “clear, customized roadmap” for your organization. This clarity is the foundation for all the cost savings and optimizations that follow.
2. Cost Optimization & Waste Reduction
The Challenge: Wasted spend on licenses is extremely common. Organizations often over-license (assigning too high a SKU to users who don’t need it, or buying more seats than they use) and accumulate under-utilized licenses (features that are paid for but not used). There may also be duplicate or overlapping tools – for instance, paying for a third-party security or conferencing app even though a Microsoft 365 license includes that functionality. All this translates to real dollars lost every month.
How the Consultation Helps: Cost optimization is a dominant theme of any Microsoft 365 licensing review. The consultants will analyze license assignments and usage data line by line to identify immediate cost-saving opportunities. Typical actions include reclaiming licenses that are purchased but unassigned or tied to former employees (obvious waste), and downgrading users who are on expensive plans but only use basic features (hidden waste). Nearly every engagement finds areas to reduce unnecessary spend. In fact, it’s common to achieve a double-digit percentage reduction in licensing costs through these optimizations – on the order of 15–20% savings on average. For example, in one recent assessment, a client discovered that by right-sizing their licenses (moving frontline staff from E3 to cheaper F3 plans and eliminating redundant add-ons), they could immediately cut costs by 15%, with an additional 11% saved through vendor pricing alignment (negotiating better terms). Another organization with 1,100 users found that 95% of their users were over-licensed, resulting in many unused features; after a thorough review, they reduced their monthly Microsoft 365 spend by 30% without losing any required functionality – freeing significant budget to reinvest elsewhere.
Crucially, cost optimization is framed not just as a one-time reduction but a strategic benefit. Dollars saved can be reallocated to higher-value initiatives – for example, funding new cloud projects or modern workplace investments (AI, training, etc.) using the budget that had been wasted on idle licenses. In summary, a licensing consultation eliminates waste: you stop overpaying for licenses that aren’t needed, and you ensure every dollar spent on Microsoft 365 is delivering value to the business.
3. Usage Alignment & Right-Sizing
The Challenge: A one-size-fits-all licensing approach often leads to mismatches. Ideally, a license plan should fit the user’s role and actual usage. In reality, many organizations either over-provision (giving expensive licenses like E5 to users who never utilize the advanced features) or under-provision (not realizing a certain team could benefit from a higher tier). Over time, as roles change and new features roll out, these misalignments grow. The goal is to right-size subscriptions: each employee should have exactly the level of tools they need – no more, no less.
How the Consultation Helps: Usage alignment is a core outcome of a Microsoft 365 licensing consultation. The process involves analyzing detailed usage telemetry (e.g. user login frequency, which apps/services each person actually uses) and mapping it against the licenses assigned. Consultants often categorize users into personas or role-based profiles (e.g. front-line worker, knowledge worker, power user, external contractor). With this data, they can recommend upgrades, downgrades or reassignments of licenses so that each user is matched to the most cost-effective SKU that meets their needs. For example, they might find that a group of users currently on an E5 plan are only using email and Teams – functionalities that a cheaper E3 or Business plan could cover. Those users can be downgraded to save money, while ensuring users who truly need advanced security or analytics (say, a subset of IT admins or analysts) retain their E5 licenses. Conversely, if some employees are under-licensed (struggling without a tool they need), the plan will flag that and suggest an upgrade so productivity isn’t hampered.
Importantly, right-sizing does not mean cutting capabilities that users need. It’s about eliminating excess and filling gaps. As the consultation team often emphasizes, “rightsizing, not downsizing” is the philosophy. If a user genuinely needs a premium feature, they will keep a license that provides it; if not, we avoid paying for it. This careful alignment improves your ROI: every user is fully equipped to do their job effectively, and you’re not paying for features that go unused.
Over time, usage alignment also leads to better governance. The consultation typically delivers a plan for ongoing license management – for example, establishing processes to adjust licenses when people join, leave, or change roles (so licenses stay aligned going forward). The end result is a leaner, more efficient licensing footprint that reflects your actual business usage patterns, often yielding significant savings as noted in Theme 2. And as a side benefit, aligning licenses to needs can highlight opportunities to drive adoption of underutilized tools (since you’ll see what’s not being used) or provide training so that you get full value from the features you’re already paying for. It’s a holistic approach to maximize the utility of every license you own.
4. Compliance, Risk, and Audit Readiness
The Challenge: Microsoft’s licensing agreements come with detailed terms and conditions. Companies must ensure their usage of the software matches what they’re entitled to – otherwise they risk falling out of compliance. Common compliance pitfalls include using more seats than purchased, allocating licenses improperly across sub-organizations, or misusing features in ways not covered by the license. If Microsoft initiates an audit (or during true-up at renewal), any compliance gaps could lead to hefty back-charges or penalties. Beyond Microsoft’s own rules, organizations also want to avoid any legal/contractual risks associated with improper licensing.
How the Consultation Helps: License compliance is consistently highlighted as a key driver for these assessments. An M365 licensing consultation will include a thorough review of your license assignments and usage relative to your contracts and Microsoft’s product terms. The experts will identify any compliance gaps – for example, if you have users running a product without a corresponding license, or if you’re mixing license types in a way that violates Microsoft’s terms. By catching these issues proactively, you can remediate them before Microsoft notices. This reduces audit risk significantly. It’s much better to find and fix a compliance issue yourself than to have it discovered in a formal audit.
The consultation also prepares you for audit readiness. You’ll come away with clear documentation of what licenses you have, how they are used, and confirmation that they’re correctly assigned – essentially an internal audit of your own. That means if Microsoft or a third-party auditor does come knocking, you can confidently demonstrate control over your licensing, rather than scrambling to figure out what’s deployed where.
Another aspect is mitigating risk ahead of renewals. The consultation will surface compliance issues before you enter a renewal or true-up negotiation, allowing you to address them quietly. For instance, if you discovered some users were using a feature beyond their license, you can adjust your licensing now (or budget for an appropriate license in the renewal) rather than having Microsoft discover it and possibly charge penalties. Thus, by ensuring adherence to Microsoft’s product terms and licensing rules, the assessment not only avoids risk but also sets the stage for optimization – because a clean, compliant environment is easier to optimize (and defend). In summary, you get peace of mind that you’re fully compliant and audit-ready, which is a critical benefit for any organization operating at scale with Microsoft 365.
5. Renewal & Lifecycle Management
The Challenge: Microsoft 365 licenses are typically purchased on fixed terms (annual subscriptions, multi-year enterprise agreements, etc.). If not managed carefully, renewals can sneak up on you – resulting in last-minute scrambles or “renewal shock” when an unexpectedly large bill arrives. Additionally, organizations might have multiple subscriptions or agreements with different end dates, making it hard to keep track. Without proactive planning, you could also miss the chance to adjust your licensing before a renewal (when you have the most leverage) or to mitigate upcoming price increases. For example, Microsoft has announced that on July 1, 2026, prices for many M365 plans will rise (e.g. Office 365 E3 increasing by 8.3%, Microsoft 365 F1 by 33%) – if you simply auto-renew without a strategy, you’ll end up paying more.
How the Consultation Helps: A licensing consultation places a strong emphasis on renewal and lifecycle management. Rather than reacting to renewals, you will develop a forward-looking plan to manage them. This includes creating a timeline of your upcoming renewal dates across all M365 subscriptions and enterprise agreements, and aligning them where possible to avoid fragmentation. Consultants often talk about avoiding “renewal shock” by forecasting future costs well in advance. They will produce projections of your licensing costs for the next 1-3 years under various scenarios – taking into account any known price changes (like the July 2026 increases) and your own growth or reduction plans.
Budget predictability is a key benefit here. With a clear renewal plan, IT and finance teams can budget confidently for Microsoft 365 spend, knowing there won’t be surprises. The plan will also simplify procurement and contract management by aligning renewal schedules and consolidating agreements if possible.
A topical example is the 2026 price increase: the consultation will advise on steps to lock in current pricing before the increase hits. Microsoft allows customers to renew early; by doing so before July 1, 2026, you could extend your licensing at the pre-increase rates for another term, delaying the impact of the price hike. These kinds of tactical renewal actions can save money and are exactly what a proactive licensing review will highlight. In short, renewal & lifecycle management through the consultation means no more scrambling at the last minute – instead, you’ll have a long-range plan to keep licensing optimized year after year, with no surprises at renewal time.
6. Security, Compliance & Readiness for AI
The Challenge: Microsoft 365 licensing isn’t just about Office apps – it also encompasses a suite of advanced security and compliance tools (from identity protection in Entra ID, to data loss prevention in Purview, to Defender security suites). Many organizations either under-utilize these built-in protections (leaving potential security value on the table) or have not licensed certain security features at all because of cost. Similarly, new innovations like AI-powered features (e.g. Microsoft 365 Copilot) introduce additional licensing considerations – companies are curious if they’re “ready” for these and what it would take license-wise to adopt them.
How the Consultation Helps: A thorough Microsoft 365 licensing consultation will assess how well your current licensing supports your security and compliance requirements, and whether you are prepared for emerging needs like AI. Often, the consultant will review which security features you’re entitled to but maybe not using. The consultation’s security recommendations will highlight opportunities to strengthen your security posture using the licenses you already have (a value unlock). It will also point out if there are critical gaps and suggest the most cost-effective way to fill them (perhaps by adding an add-on instead of upgrading an entire SKU). The key is to ensure any risk exposure is addressed without unnecessary overspending.
The consultation also looks ahead to AI readiness. Microsoft’s new AI offerings (like Copilot for Microsoft 365 apps) often require specific prerequisites. The assessment will verify if your environment is technically and licensing-wise ready for such features. If you’re interested in adopting AI capabilities, the consultants can outline what licensing changes (if any) would be needed, and typically advise targeting AI licenses to the users or roles that will get the most value, rather than a blanket assignment, to maximize ROI.
In summary, this theme ensures that optimization isn’t just about cutting cost – it’s also about positioning you to use Microsoft’s latest capabilities safely and effectively. You emerge from the consultation not only leaner on spend, but also better prepared for modern threats and innovations (with the right security tools enabled and the groundwork laid for AI adoption).
7. Strategic Guidance & Ongoing Partner Support
The Challenge: Optimizing Microsoft 365 licensing is not a one-time project – the Microsoft cloud is continually evolving. New services, features, and changes in your own organization mean that what’s optimal today might not stay optimal in a year. Without ongoing guidance, companies can slowly drift back into inefficient licensing. Many IT leaders also find it valuable to have a trusted advisor who keeps them informed of Microsoft’s roadmap, upcoming changes, and best practices, rather than doing ad-hoc audits in isolation.
How the Consultation Helps: A Microsoft 365 licensing consultation is positioned as a consultative, relationship-driven engagement rather than a one-off event. The provider (often a Microsoft partner) works closely with your stakeholders and becomes an advisor on your licensing strategy. Typically, the process culminates in a detailed executive briefing where the findings and recommendations are presented in business terms – e.g. an Executive Summary and an optimization roadmap that you can share with leadership to get buy-in. This often includes scenario modeling and an action plan with concrete steps.
Top providers will offer ongoing support and guidance even after the initial consultation deliverables. For example, you might opt for quarterly check-ins or reports to continuously monitor your license usage and spend. These periodic reviews help ensure that savings realized during the project are sustained over time and that your licensing stays aligned with any new business changes or Microsoft product updates.
Another strategic benefit of working with a Microsoft Solutions Partner on such a consultation is access to exclusive expertise and offers. Certified partners like TrustedTech (the one offering this consultation) have verified expertise in modern work licensing and often can extend special pricing or promotions that you wouldn’t get buying direct.
By the end of the process, you should feel that you have an ongoing ally in navigating Microsoft’s licensing maze. This means future decisions – whether it’s negotiating a renewal, integrating licensing after an acquisition, or rolling out a new Microsoft technology – can be made with expert guidance on hand. That level of strategic support and partnership is a major reason organizations choose a formal consultation service rather than trying to DIY their license optimization.
Conclusion
In conclusion, a Microsoft 365 Licensing Consultation is a high-impact engagement that delivers clarity and tangible savings for your organization. It addresses the full spectrum of licensing challenges – from unraveling complexity and cutting out wasted spend, to aligning licenses with actual user needs, shoring up compliance, planning for renewals, evaluating security posture, and providing strategic guidance as you adopt new technologies.
For IT decision-makers and procurement professionals, this consultation offers peace of mind and a clear path forward. You will be able to make data-driven decisions about licensing with confidence, armed with an understanding of what you have, what you need, and what actions will benefit your organization the most. By the end of the process, you’ll have achieved not only immediate cost reductions and risk mitigation, but also a strategic alignment of your Microsoft 365 environment with your business goals – all with an authoritative roadmap and a trusted partner to support execution.
