Microsoft changed its commercial terms so that paying monthly on an annual-term subscription now carries a premium over paying up front, alongside price rises across the business plans. For a 20-user business the difference is real money.
Where the savings usually are
In nearly every licence review we run, we find:
- Licences assigned to people who've left. The account was disabled but the licence kept billing.
- The wrong plan. Business Premium is excellent value if you use its security features; it's expensive if you only use email. Equally, several businesses on Business Basic are paying separately for things Premium includes.
- Duplicate tooling. A separate password manager, backup, antivirus and MFA product where the Microsoft equivalent is already paid for.
- Frontline plans not being used. Shift workers and shared-device staff often qualify for much cheaper licences.
How to approach it
- Get an accurate list of assigned licences and last sign-in dates.
- Match plans to how people actually work, not job titles.
- Decide term and payment frequency deliberately — annual commitment is cheaper if the headcount is stable.
We do this review for customers as a matter of course and it usually pays for itself.