A Microsoft 365 licence review checks what your business buys, who receives each licence and which features people actually need. It compares that evidence with subscription terms, security requirements and renewal dates, then sets out changes worth making. The result should be a costed recommendation that explains both the opportunity and the trade-offs.
Two Australian organisations recently asked Stanfield IT to examine their licensing. One was paying for unused accounts, spare seats and overlapping add-ons. The other had bought Microsoft 365 E5 for almost everyone, with little evidence that the full package was needed. Both reviews identified opportunities, although neither organisation had implemented the proposed changes when these examples were prepared.
A Microsoft 365 licence review that found unused spend
At a large Australian organisation, we identified A$1,850 a month in potential savings from licence clean-up alone. Over 12 months, that is A$22,200, based on the reviewed quantities and prices remaining consistent. The opportunity covered unused accounts, spare licences and duplicate add-ons that had accumulated without regular checks.
The monthly licence bill was approximately A$25,359, making the clean-up opportunity about 7% of that spend. As staffing and requirements changed, licences accumulated without a consistent process to reconcile purchases against the current workforce.
The A$1,850 figure is projected and applies to clean-up before wider plan changes, implementation fees or other required licences. It should therefore be assessed alongside the full recommended design. A business owner needs to see when a reduction can take effect, what it costs to implement and which ongoing charges remain.
Removing an assignment and reducing the bill
Unassigning a licence from a former employee makes it available for someone else. Reducing the purchased quantity changes the subscription commitment and, when permitted under its terms, the amount billed. A review needs to account for both. Otherwise, the administrator can finish removing assignments while the business continues paying for the same number of seats.
Before removing a licence, confirm what happens to the employee’s mailbox, files, retention requirements and access needed by colleagues. Keep a record of the decision and arrange any required data handling first. Microsoft’s guidance separately describes removing the user assignment and reducing the number purchased. Read Microsoft’s former employee licence guidance.
When E5 has been bought just in case
The second review involved an Australian manufacturer using Microsoft 365 E5 for most office staff on a monthly term, alongside lower plans for frontline users. The business had chosen E5 as a precaution, but our review found several features were unused and some security settings still needed attention.
The proposed alternative combined Microsoft 365 Business Premium with Microsoft Defender Suite and Microsoft Purview Suite for Business Premium. Power BI Pro was retained for the staff who needed it, alongside Teams Phone for one user. These were specific recommendations for this organisation, subject to confirming every required feature, eligible user and add-on.
Further Defender requirements and an optional AI security add-on were still being priced. Final savings depend on the full licence mix, remaining add-on prices and implementation costs. The proposed change would start with a pilot and proceed in batches around renewal dates.
What a Microsoft 365 licence review should cover
Start with the invoice, subscription inventory, staff list and assigned licences. Then examine relevant usage reports and ask the people responsible for each team how work gets done. Microsoft’s reports cover different services and reporting periods, and data can arrive after a delay. An apparently inactive account needs investigation before any action. Read Microsoft’s usage report guidance.
Usage alone cannot establish whether a licence is unnecessary. Someone may be on extended leave, work seasonally or need a feature for an occasional business process. Security and retention requirements also matter. A useful recommendation records the reason for keeping, changing or removing each licence category.
For a plan change, check desktop applications, mailbox and archive requirements, OneDrive and SharePoint storage, Teams meetings, telephony, reporting, Windows rights and security dependencies. Our Microsoft 365 support services bring the licensing decision together with the practical work needed to make an approved change.
A clear business case should show current and proposed monthly charges, the term used for each price and the assumptions behind the comparison. Separate implementation work from recurring licence costs. Record outstanding pricing and show the effect of retaining features for particular teams. Finance can then judge the proposal against its budget, while the technical owner can check the design. Approval should cover the scope, costs and change dates before licences are moved or ordered.
Check the commitment before the renewal
A monthly invoice does not necessarily mean a monthly commitment. Record the subscription term separately from its billing frequency, along with the renewal date and any scheduled changes. This helps the business compare flexibility, price and the risk of paying for seats it cannot yet remove.
For Microsoft new commerce licence subscriptions managed through Cloud Solution Providers, seat reductions generally have a seven-day window after purchase, renewal or the addition of those seats, subject to applicable exceptions. Outside an available window, reductions may need to wait until renewal. Microsoft’s partner documentation also describes scheduling quantity changes for the next term. Read Microsoft’s subscription management guidance.
Confirm the applicable terms with the provider before changing anything. The recommendation should identify the earliest practical date for each reduction, any overlap between subscriptions and the cost of the transition.
Give someone ownership every month
A Microsoft 365 licence review becomes more valuable when someone owns the follow-up. Reconcile joiners and leavers monthly, check spare capacity, investigate unexpected purchases and review upcoming renewals. Give finance and the technical team the same view of quantities, commitments and agreed changes.
The manufacturer also needed stronger MFA coverage, emergency administrator accounts and tighter access permissions. Those actions required their own implementation work. Our Microsoft 365 security assessment guide explains the broader security checks to consider alongside a focused licensing exercise.
Frequently asked questions
Will a Microsoft 365 licence review guarantee a saving?
The result depends on your existing licences, working practices and commitments. A review may find unused spend, identify a better plan mix or establish that the current arrangement fits. Request a written comparison that includes required add-ons, fees and timing.
Can Business Premium replace E5?
Suitability depends on the organisation and its requirements. Check eligibility, features, capacity limits and any additional licences before approving a change. The manufacturer’s proposed combination should be assessed as an individual example.
When should we arrange a review?
Allow enough time before renewal to gather evidence, confirm requirements and approve changes. Review again after significant hiring, departures or acquisitions. For a Microsoft 365 licence review of your own environment, contact Stanfield IT with your approximate user count and renewal date.
The figures above are identified opportunities in AUD excluding GST, with the A$1,850 monthly clean-up figure based on October 2026 Microsoft list prices. They exclude Stanfield IT labour and are subject to the client’s final requirements and subscription terms. Actual outcomes will depend on approved changes being implemented and the resulting invoices.
