Microsoft 365 is a powerful platform – but it's also one of the most common sources of hidden, recurring costs for organizations of all sizes. Between user licenses, add-ons, Azure services, and third-party integrations, it's easy for spending to spiral. Often, no one's watching closely, until the monthly invoices start creeping up.
At FireOak Strategies, we've worked with clients who were wasting thousands of dollars each month – not because they were reckless, but because no one had taken a step back to look at what they were paying for versus what they were actually using.
Here's where costs often balloon, and what you can do about it.
The Usual Suspects: Where License Waste Hides
Standard Microsoft 365 User License
This is the obvious one, but it's worth revisiting regularly. Are you paying for licenses tied to users who have left? Contractors who never needed full access? Shared mailboxes that could be free?
Add-Ons that sound great but often go unused
These are powerful tools – but only when they're used:
- Teams Premium
- Teams Voice (Phone System)
- Visio
- Power BI Pro/Premium
- Project Premium
- Defender for Endpoint Plan 2
If you're paying for 75 Power BI licenses but only 12 people log in monthly, that's a problem. Ditto for Visio – one of the most over-provisioned (and underused) tools we see.
Azure Costs with No Oversight
We've seen it all:
- A nonprofit paying hundreds each month for Azure premium support, despite no one doing development in Azure.
- An organization burning over $1,000 a month on Azure resources provisioned by a former staff member that no one remembered to turn off.
Duplicative License Coverage
You can get Intune via different license types – E3 + EMS, Microsoft Business Premium, or Microsoft 365 E5. But we regularly find organizations unknowingly paying for Intune twice via overlapping subscriptions. Same goes for Defender or conditional access policies.
MSP License Markups
Some IT Managed Service Providers (MSPs) charge different rates based on license tiers. That means over-licensing staff (or contractors) could increase your MSP costs too. Staff with managed devices likely need full coverage, but do your contractors who use their own machines?
Tips to Rein in Microsoft 365 and Azure Spend
Review your active users monthly
Set a recurring reminder to review active versus inactive accounts, especially after staff transitions. Disable and reassign licenses promptly.
Use Microsoft Admin Reports to Track Usage
Microsoft's admin portals offer decent visibility into product usage (e.g. Power BI activity, Teams meetings, SharePoint storage). Use them to inform renewal decisions.
Audit Add-Ons Quarterly
Check each add-on SKU you're paying for. Who's using it? Is it needed? Can it be downgraded or reassigned?
Assign Licensing Responsibilities
Someone – internal or external – needs to own license management. If you're working with an MSP, make sure they're not simply adding licenses without approval.
Final Thoughts: Use the Tools that Move You Forward – Intentionally
We're not anti-Microsoft. Microsoft and Azure are exceptional platforms when aligned with your needs. But when left on autopilot, they can quietly drain your budget.
Smart technology decisions aren't just about picking the "best" tools – they're about aligning those tools to your mission, your people, and your actual work.
Need help with a license audit or platform rationalization? That's what we do.
Because smarter tech leads to stronger missions – and smarter bills.
