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Home » Maximizing Productivity with Microsoft 365 Apps: Tips for License Management

Maximizing Productivity with Microsoft 365 Apps: Tips for License Management

January 23, 2025

Introduction

Microsoft 365 apps are simplifying pretty much everything for organizations. With its comprehensive set of apps and easy integration, this cloud-based subscription service has been adopted across various industries and organizations of all sizes. Well-known companies like Apple, IKEA, and Accenture are adopting this CRM service model from Microsoft, however, many are failing to get the most out of it.

The main gap that bridges this issue is effective Microsoft 365 license management. A lot of companies purchase licenses without understanding their employees’ specific needs, which eventually leads to a mismatch between tools and actual usage. This not only results in wasted costs but also reduces productivity, as employees may not have access to the tools, they truly need for their roles.

In this article, we’ll look at proven methods for managing Microsoft licensing to boost corporate productivity and efficiency. Let’s explore!

Understanding the Types of Microsoft 365 Licensing

Microsoft 365 offers several types of licensing for both businesses and large enterprises. However, to earn its maximum potential, it is crucial to understand the best subscription plan according to your business goals and needs. Here are some of the most common plans:

For Small and Medium Sized Business:

Microsoft 365 Business Basic:

Offers convenient business email and cloud services with essential office apps and standard security features.

Microsoft 365 Business Standard:

Features an all-inclusive pack of basic apps with premium features and advanced customer collaboration tools.

Microsoft 365 Business Premium:

Provides access to comprehensive Office applications with enhanced security, data control, and protection against cyber threats.

For Large Enterprise use:

Microsoft 365 E1:

Offers web only versions of office apps with basic online collaboration, file sharing, and cloud services tools.

Microsoft 365 E3:

Includes all features of E1 with addition to desktop apps, message encryption and enhanced data loss prevention.

Microsoft 365 E5:

Provides all features of E3 with robust security measures and access to analytic tools like Power BI.

How to optimize Microsoft 365 license usage for increased productivity

To increase the effectiveness in work, organizations need to utilize their Microsoft licenses according to their needs. Here are a few ways to do proper licensing:

Understand your current licensing situation:

Start by reviewing your current licenses. Check what your plan includes, how much it costs, and if there are unused or unassigned tools. This will help you understand your needs and make better decisions for future purchases.

License Assignments:

Always make sure that every individual is assigned with the right licensing access. This process involves analyzing the roles and responsibilities of each team member and allocating licenses accordingly.

Remove Unused Accounts:

Sometimes, people stop using their accounts, but the license is still active. This happens mostly in the case of employees leaving the company. Consider checking regularly for unused accounts and cancel those licenses.

Use Microsoft Admin Tools:

Microsoft 365 plan offers an admin center which helps in managing, assigning and monitoring licensing of Microsoft tools. Through this tool, organizations can make informed decisions based on the user activity.

Best Practices for Managing Microsoft 365 Licenses Effectively

Managing Microsoft 365 licenses effectively not only enhances productivity, but it also cuts unnecessary costs and promotes purposeful work. Here is a step-by-step guide to Microsoft 365 license management strategies:

Assign Correct Licenses

The first and the most important step is to assign the tool’s license based on the need of the specific department. For example, tools such as Microsoft Power Apps or advanced Excel functionalities might help developers in creating apps hassle-free. Assigning licenses to users based on their tasks ensures the efficient usage of tools.

Avoid Over-Provisioning

Over-Provisioning happens when you buy more licenses than you actually need. According to some estimates, organizations don’t even use around 21-50% of their cloud resources. It’s always better to analyze your team’s size and tool requirements before purchasing any plan.

Regularly Moniter Usage and Conduct Audits

Monitor your licenses regularly to look for unused or underutilized licenses. Microsoft 365 provides an admin control panel to track how tools are being used. Simply use these insights to understand which features are commonly used and which are neglected. For example, if a team isn’t using OneDrive but is heavily reliant on Teams, you can adjust the licenses to better support their work.

Employee Training

A lot of tools go unused because users don’t know how to use them. Offer simple training sessions to help people make the most of the tools included in their licenses. For example, teaching employees how to use Excel shortcuts or Teams collaboration features can significantly boost productivity.

Optimize License Plans

Regularly review your Microsoft 365 subscription plans to ensure they align with your organization’s current needs. Adjust plans by upgrading or downgrading when there is a need. It will help you avoid overpaying for unnecessary tools or underproviding essential features for employees.

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Tips for Monitoring and Adjusting Microsoft 365 Licenses Regularly

It is important to perform regular monitoring and licenses adjustment to get the most value from your Microsoft 365 subscription. With this practice, you can be certain that your organization is not paying too much for features it doesn’t need and is fully utilizing the tools it has. Here are some effective tips for managing and adjusting your Microsoft 365 licenses: Implement License Management Tools Microsoft 365 offers several tools to facilitate license management. Use Microsoft admin center to roll up view of licenses to track, assign or unassign according to your needs. You can also do some processes by using automation (example of license assignment to the a new employees or auto license removal when someone leave the company. Set Up Alerts for License Usage You can solve the gaps and see how resources are being consumed by immediately setting up alerts for license usage. These alerts help you when a tool is not used or is low usage. This way, you will be notified whether a plan needs to be upgraded, or unnecessary licenses need to be eliminated. Consolidate Licenses When Possible If your organization has several subscriptions or plans, think about combining them into one single plan. Microsoft gives you varieties of subscription (Business and Enterprise plans, etc.) that can support various user needs on the same plan. Consolidating licenses can simplify management and help save money by ensuring that no unnecessary features or licenses are included. Plan for Growth and Changes You may also need to upgrade or make modifications in licensing if your organization is growing or evolving. Understand your needed licenses and prepare for all this changes in advance. If you are onboarding new hires, making changes into other departments, or trying new tools, modify your subscriptions to reflect the needs. Monitor Renewal Dates Always remember to keep an eye on your subscription expiry dates to prevent that surprise charge. This way, you can make the changes you need (i.e. dropping unused support, raising required ones) before the renewal date. Review Licensing Terms and Updates The subscription plans and licensing terms of Microsoft often get updates. The following announcements keep you updated with the latest changes in Microsoft 365 licensing. Sometimes these updates bring additional features or changes to existing plans that impact your license management.

Maximizing ROI through efficient Microsoft 365 license management techniques

With the help of strategic Microsoft 365 license management, organizations can boost their ROI by a significant amount. It not only benefits the business but also sparks creativity among its users. Here are a few ways how correctly managed Microsoft licenses generate ROI:

Minimized Wastage

Regular licenses audits make sure that you’re not paying for the resources that you don’t need. This ultimately reduces waste and provides relief for your budget for more critical areas like team development or additional tools that directly impact business goals. By reallocating or canceling unused licenses, you simply avoid over-paying.

Boost in Team Productivity

By identifying the roles of the employees and providing them with the appropriate tools, they can work in a productive manner. For instance, giving access to collaborative tools like Microsoft Teams or SharePoint allows teams to streamline communication and workflows. When employees have the right tools at their disposal, they can complete tasks faster and more effectively, which directly contributes to the organization’s success.

Improved Compliance

Proper license management ensures compliance with Microsoft’s licensing terms. Overuse of licenses or incorrect assignments can lead to violations, resulting in fines or penalties. Efficient management ensures your organization avoids these risks while maintaining proper records of license usage. Compliance also helps build trust with stakeholders by showing responsible handling of resources.

Scalability

With the growth of the business, efficient license management makes it easy to adjust subscription to meet the demands. You can quickly allocate new licenses for new hires or modify existing plans to suit changing roles and requirements. This scalability supports smooth operations and ensures that all employees have the tools they need as the organization evolves.

Cost Optimization

An efficient Microsoft subscription management enables you to optimize costs by ensuring you only pay for what you need, as not all users require access to advanced tools. By matching licenses to user roles and reviewing plans periodically, you can choose the most cost-effective options for your organization.

Better Decision-Making

Tracking license usage data through Microsoft’s reporting tools helps you make informed decisions. These insights allow you to understand which tools are most valuable to your team and which are underused. With this information, you can reallocate resources to maximize the benefits of your Microsoft 365 subscription.

Future-Proofing Your Business

Cloud license management gives your organization the ability to adapt for future changes. If you manage your licenses well, then you would be able to change to a new technology, keeping up with industry trends and will be able to stay versatile.

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Conclusion

Managing Microsoft 365 licenses well simply means better work and less waste. It helps everyone do their job better. By picking the right plans, removing unused licenses, and making sure each person has the tools they need, companies can save money and help their teams work better. When companies take care of their Microsoft 365 licenses, they help their workers do their best work and save money at the same time. Remember, good license management isn’t just about saving money, it’s about giving your team the right tools to succeed mutually.

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Cleared Doubts: FAQs

How often should I check my company's Microsoft 365 licenses?

Look at your license once every three months. This helps you spot unused accounts, especially from people who’ve left the company.

How do I know which Microsoft 365 plan is best for my small business?

Start with Business Basic if you just need email and basic apps. Choose Business Standard or Premium only if you need desktop apps or extra security.

If I'm not sure about which license to choose, what should I do?

Start with a basic plan and upgrade later if needed. It’s easier to add features than to pay for ones you don’t use.

What's the first thing I should do to manage licenses better?

Make a simple list of what each team actually needs. Some might just need email and basic apps, while others need advanced tools.

My team says they can't use some Microsoft tools. What's the easiest way to fix this?

Educate them by giving quick training sessions. Many people don’t use tools simply because they don’t know how. Show them the basics, and they’ll use them more.

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