Microsoft 365 Licensing 101: Common Missteps and How to Correct Them

Microsoft 365 and Google Workspace are two very commonly used office productivity platforms with multiple analytical, research, and advisory organizations, including Gartner, saying the same. According to their 2024 Peer Insights, both the Microsoft and Google platforms occupy similar percentages of the productivity suite market, with Microsoft 365 having a slight edge over its Google-backed counterpart. Another study reports that, as of 2024, over a million companies use the Microsoft suite, especially in the US.

Formerly known as Office 365, Microsoft 365’s extensive range of tools – from Word to Excel to SharePoint and so on – offers organizations an integrated work environment meant to maximize productivity and streamline operations. Its extensive utilization globally indicates how reliant organizations are on the platform to facilitate daily operations. It can also pose challenges for users unfamiliar with Microsoft’s licensing, subscriptions, and plans, whether they are migrating from another suite or part of a newly established business. The diverse array of options available, for standalone applications and bundled software, often confuses individuals and organizations, resulting in costly mistakes that affect the organization’s profitability.

The upcoming sections of this blog will cover the common mistakes that most organizations inadvertently fall prey to, and how you can avoid them. Understanding these pitfalls and incorporating the actionable recommendations into your Microsoft 365 deployment/management strategies is essential to making the most of your Office 365 plan.

Mistakes to Avoid When Deploying Microsoft 365

Microsoft 365 deployment can be a challenging task without proper expertise. Before you opt for a Microsoft 365 deployment, there are certain things you must remember for a smooth and successful migration to Microsoft 365. During implementation and adoption, you should clearly know your goals and requirements and plan accordingly.

However, there are some common mistakes that organizations commit while deploying Microsoft 365, which you can avoid if you know them clearly. Note that the following points are with special reference to users who are migrating from another platform to Microsoft 365.

• Not Paying Attention to Employee Training

  To be fully prepared for the implementation, organizations invest a lot of resources in Microsoft 365 deployment, only to know that the end-users are not comfortable with the new platform. People are your biggest asset, more than any cutting-edge technology out there. If they are not trained to use the new platform, the rigorous Microsoft 365 deployment would not be completely efficient as it would lack user involvement. This would in turn make you question the decision to go ahead with Microsoft 365 deployment as it wouldn’t offer its full value.

  Remedy: Make sure that employees are trained on the new platform. They should not be scared to use it after the launch. Instead of expecting them to embrace the drastic change, give them a taste of the environment even before the migration takes place.

• Leaving Migrations Only to the Technical Team

  When dealing with migrations, organizations tend to have a myopic vision with a mindset that only a technical team should be associated with it. However, that is not true. Since migration will change the IT landscape of your company and everyone deals with some IT, every employee in the organization is a stakeholder. If there is friction between the two teams about Microsoft 365 migration, there would be a hindrance to the successful Microsoft 365 deployment. Microsoft 365 migration is too important to be just left to the technical team.

  Remedy: All the stakeholders need to be on the same page as to why a switch is important for the organization. From the first day of adoption, let the key people of the organization be involved in the process from the start so that the knowledge transfer would be smooth and easy.

• Ambiguity Around Cloud Adoption

  The biggest resistance to Microsoft 365 deployment that organizations have is the “migration is difficult” mindset. Moving data and collaborative efforts to the cloud is no doubt a challenging task, but it can be done without any hassles under the eye of an expert.

  Organizations often have compliance and industry standards to adhere to. It is very practical to have some mental resistance to any new system. Similarly, cloud adoption can be unsettling to many traditional and conventional business minds. However, resisting change is a mistake that many decision-makers are guilty of.

  Remedy: Microsoft offers complete solutions to a wide-ranging compliance issue, which often limits companies from adopting a cloud-based system. A financial institution can focus on risk management, oversight, cyber security, and threat intelligence.

• Lack of Comprehensive Pre-Migration Audits

  Even if you’re working with a partner, there would be some work that can be only done from your end. Many times, organizations conduct sub-standard audits as they excessively focus on the next step. Poor management and incomplete risk assessments will lead to unnecessary pitfalls after the migration to Microsoft 365.

  Remedy: Before anything else, you should make sure that you’re conducting a comprehensive pre-migration audit studying the structure of your environment. After your environment has cleared feasibility checks, let your service provider know everything that would help them ease out the deployment process.

• Rushing Through the Migration

  While meeting tight deadlines can be productive, migrations can be complex to execute in a rushed manner. If your migrations are complicated, it is safe to assume that the estimated time of completion will only swell further. You would not want to encounter any problems like data loss because of rushed deadlines, which lead to poorly executed migrations.

It’s easy to have unrealistic expectations regarding deployment timelines, but taking a measured approach will help ensure a smooth process without unnecessary complications.

If you need guidance on optimizing your licensing or addressing compliance concerns, count on Apps4Rent’s expertise. Our seasoned team is here to assist you in navigating the intricacies of Microsoft 365 licensing.

Common Pitfalls in Microsoft 365 License Management

Technically speaking, there should be a section prior to the mistakes when deploying Microsoft 365 section outlining the best practices to follow and what to avoid while selecting the appropriate plan and number of users for your organization. Discussing all of this is beyond the scope of this article and you can find dedicated guides on our blog site on the differences between the various Microsoft 365 plans and which are suitable for what kind of organizations.

Setting that aside, the issues mentioned in this section, and their solutions, are also applicable on a general level to choosing the right Microsoft plan for your business. The following points highlight how to manage Microsoft licenses and address some of the common issues that arise in the process.

• Underutilization of Features and Applications

  The biggest waste in life comes from not properly utilizing something after paying for it. The logic extends from gym memberships that we pay for but never use to shelling out fixed monthly payments for a comprehensive productivity suite like Microsoft 365 and not using all the features/applications at your disposal. Many organizations use only a small fraction of the tools included in their subscriptions, often focusing solely on core applications like Word, Excel, and Outlook. This underuse leaves productivity-enhancing tools like SharePoint, Teams, and OneDrive untapped, resulting in a lower return on investment (ROI). Ensuring that employees are well-trained and aware of the full capabilities of their Microsoft 365 suite can maximize both efficiency and collaboration across teams.

• Purchasing More Licenses Than Necessary

  There is a fine balance that organizations need to maintain while acquiring the required number of licenses, either when migrating services or while setting up a new business. Often, businesses purchase more Microsoft licenses than necessary, either because they overestimated the number of employees they would have or because they ended up subscribing to a higher-tier plan that comes with advanced features that are not required by or useful for the average corporate employee. This leads to unnecessary expenses. To avoid overprovisioning, conduct a thorough assessment of your team’s specific needs and match them with the appropriate license types. Consulting with an IT professional like Apps4Rent can help simplify this process, ensuring you only pay for what you actually need without sacrificing access to essential tools.

• Incorrect License Assignments

  This pitfall is kind of an extension of the previous one but deserves its own spot due to how common and easily avoidable it is. For example, assigning a premium license to a user who only needs basic email access results in wasted resources. On the flip side, assigning a low-tier license to users who require advanced functionality can hamper their productivity. It’s essential to evaluate each user’s role and job requirements before assigning a license. IT teams or MSPs should regularly audit user roles and ensure that licenses are correctly aligned with job functions.

• Neglecting Regular License Audits

  Regular audits are essential to keep track of Microsoft license usage and ensure cost efficiency. Without these audits, businesses risk paying for inactive or underutilized licenses that may go unnoticed. The key issue here is the ongoing evaluation of how licenses are being used. Regular audits—conducted quarterly or biannually—offer insights into patterns of license usage and help identify opportunities to reallocate or downgrade licenses. Auditing can also reveal any compliance risks by ensuring that the organization adheres to Microsoft’s licensing terms. A proactive audit process ensures that the licenses assigned match current business needs, ultimately saving costs and avoiding unnecessary expenditures.

  

• Ignoring License Expiration and Renewal Dates

  Unlike audits, which focus on optimizing license use, managing Microsoft license expiration and renewal dates is about maintaining uninterrupted service and avoiding surprise costs. Missing expiration dates can lead to service disruptions, where users suddenly lose access to essential tools, impacting productivity. On the other hand, auto-renewing without reviewing the current needs can result in continued payments for redundant tools or applications. Setting up reminders for renewal dates ensures that businesses can make informed decisions about whether to renew, cancel, or modify their licenses before commitments are renewed. Leveraging Apps4Rent’s services or your organization’s internal IT system can further smoothen this process, ensuring proper renewal management while preventing lapses in service or surprise fees.

• Overlooking Compliance and Regulatory Requirements

  Regulatory compliances are not universal and vary based on a number of factors – from the nature of the industry your business operates in, to the number of employees your organization hires. Different industries have unique compliance and regulatory requirements when it comes to data storage, privacy, and security. Failing to account for these requirements when selecting a Microsoft 365 plan can expose your organization to legal and financial risks. For instance, healthcare organizations must consider HIPAA compliance when choosing licenses, ensuring that appropriate security measures are in place to protect sensitive data. Consulting with compliance experts can help ensure that your Microsoft license configurations meet industry-specific regulations and standards, safeguarding both your business and customer data.

• Not Considering Role-Based Access

  A uniform approach to licensing can lead to inefficiencies in how Microsoft 365 is utilized. Different staff members have unique responsibilities, and their access to Microsoft 365 tools should align with their specific roles. Ignoring role-based access means that organizations may either allocate unnecessary resources to some users or deprive others of the features they truly need. By applying a role-based strategy, businesses can match the right licenses to the right roles, ensuring cost-effective and appropriate feature access. It’s important to periodically review user roles and adjust access levels to optimize both productivity and expenses.

Optimize Your Microsoft 365 Experience with Apps4Rent

Ensuring that your Microsoft 365 licenses are effectively managed is key to maximizing productivity while minimizing unnecessary costs. At Apps4Rent, we specialize in helping businesses of all sizes optimize their Microsoft 365 environments, ensuring you have the right number of licenses and features for your unique needs.

Our team of Microsoft-certified experts provides 24/7 support to guide you through every step, from license selection and setup to ongoing management and compliance. Whether you’re looking to streamline your license allocation, avoid common missteps, or ensure your business remains compliant with industry regulations, our tailored solutions will help you get the most out of your Microsoft 365 subscription.

With a variety of plans and customizations available, Apps4Rent ensures that your organization’s needs are met with precision. Contact us today to learn more about how we can support your business and keep your Microsoft 365 environment running smoothly, all while staying within budget.