Why Microsoft 365 licensing needs regular review

25 March 2026

Microsoft 365 licensing is one of the easiest areas for costs and complexity to build up quietly in the background.

It rarely starts as a problem. Licences are assigned with good intent. Someone joins the business, they’re given access. A role changes, a licence is upgraded. A new tool is rolled out, and another plan is introduced.

Individually, each decision makes sense. Over time, though, it often results in a licensing setup that’s difficult to understand, inconsistent across teams, and more expensive than it needs to be.

How licensing becomes complicated

Most organisations don’t design their licensing model upfront. It evolves.

That usually leads to:

• Multiple licence types being used for similar roles
• Different departments working in different ways for no clear reason
• Legacy licences still in place long after they’re needed
• Add-ons being layered on top of base licences without review

In many cases, there’s no single view of who has what and why. Even when reporting exists, it doesn’t always translate into clear decisions.

Where costs typically creep in

Overspend in Microsoft 365 licensing isn’t usually caused by one big issue. It’s the accumulation of smaller inefficiencies.

Common examples include:

Over-licensing - Users are assigned higher-tier licences (like E3 or E5) but only use a small portion of the features. This often happens when licences are upgraded “just in case” or inherited from a previous role.

Under-licensing - Users don’t have access to the tools they actually need, which can lead to workarounds, reduced productivity, or additional shadow IT.

Inactive accounts - Licences remain assigned to leavers, shared mailboxes, or dormant accounts that are no longer in use.

Add-on sprawl - Extra features are purchased as add-ons rather than being rationalised into a more suitable base licence.

Lack of standardisation - Two people doing the same job have completely different licence setups, making support and management harder than it needs to be.

What a structured review involves

A proper review goes beyond just listing licences. It’s about aligning licensing with how the business actually operates.

That typically includes:

1. Licence audit
A full review of assigned licences, including identifying unused, duplicate, or inactive allocations.

2. Usage analysis
Looking at which services are actually being used. For example, whether advanced security, compliance, or telephony features are actively needed.

3. Role-based mapping
Grouping users by role and defining what each role genuinely requires from Microsoft 365.

4. Rationalisation
Removing unnecessary licences, consolidating where possible, and ensuring each user has the right level of access.

5. Standardisation
Creating a small number of clear licence profiles that can be consistently applied across the business.

6. Future-proofing
Putting simple rules in place for new starters, role changes, and leavers so the structure doesn’t drift again.

The benefits of getting it right

When licensing is properly aligned, the impact is immediate and ongoing.

Clarity - There’s a clear understanding of what each licence type is for and who should have it.

Cost control - You stop paying for unused or unnecessary licences and can make informed decisions about upgrades.

Consistency - Users in similar roles have the same tools, making support, training, and collaboration easier.

Better forecasting - With a structured model, it becomes much easier to predict costs as the business grows.

Reduced admin overhead - IT teams spend less time troubleshooting licensing issues or untangling inconsistencies.

Why this shouldn’t be a one-off exercise

Even a well-structured licensing model will drift over time without some level of ongoing review. Businesses evolve. Roles change. Microsoft introduces new features and licensing options. A light-touch review every 6 to 12 months is usually enough to keep things aligned and avoid the same issues building up again.

Maple's thoughts

Microsoft 365 licensing doesn’t need to be complex, but it does need to be intentional. A structured review brings everything back to basics. What do people actually need to do their jobs, and what’s the simplest, most cost-effective way to support that? If you can answer that clearly, the rest tends to fall into place.