Managing Microsoft licenses can be complex, with challenges ranging from optimizing Azure costs to efficiently managing Microsoft 365 subscriptions and ensuring compliance for both on-premises and cloud services. This article discusses seven effective strategies to reduce your Microsoft licensing costs and optimize your license agreements.
Reclaiming Project and Visio licenses
Project and Visio licenses are often underutilized. By monitoring your software usage and identifying unused licenses, you can reclaim and reallocate these licenses. This can lead to significant cost savings, up to 30% on these licenses.
Optimizing Azure costs
Managing Azure expenses requires ongoing attention. By implementing FinOps practices and utilizing techniques such as Reserved Instances, Savings Plans, and Spot VMs, you can significantly lower your Azure costs. Regular evaluations help prevent high expenditures and free up resources for strategic initiatives.
Strategic approach to non-production and developer licenses
A well-defined licensing strategy for non-production environments can lead to cost savings. By effectively managing Visual Studio licenses and leveraging cloud options like Azure Test Dev Benefit, you can save costs on development and test environments while ensuring licensing compliance.
Optimization of SQL Server licenses
With an increase in SQL Server instances on-premises or migration to the cloud, it is important to regularly review your SQL Server licensing position. By consolidating SQL Server instances and switching to cheaper editions, you can reduce costs. SQL Azure Hybrid Benefit can provide additional savings for cloud implementations.
Microsoft 365/Office 365 optimization
The costs of Microsoft 365 and Office 365 can constitute a significant portion of your IT budget. It is crucial to conduct a thorough evaluation of your licenses to avoid unjustified high expenses. Often, expensive subscriptions are allocated to users who do not need these features, or there are license surpluses due to insufficient management of employee onboarding and offboarding. Additionally, assigning expensive licenses to service accounts can incur unnecessary costs. A detailed assessment can help reduce costs and improve the efficiency of your license management.
Reviewing Windows Server licenses after cloud migration
If your organization has migrated to the cloud and the use of on-premises Windows Server licenses has decreased, it’s time to reassess your Windows Server licenses. The transition to the cloud may reduce the need for on-premises virtual machines, providing an opportunity to optimize your licensing solutions.
For instance, switching from Windows Server Datacenter licenses to Windows Server Standard licenses can result in significant cost savings. The Standard edition licenses based on the number of virtual machines, rather than the unlimited virtualization capacity of the Datacenter edition. Additionally, using Azure Hybrid Benefit can provide further savings by leveraging existing on-premises licenses to reduce cloud costs.
However, it is essential to make the best choice based on your specific situation. A thorough analysis of your virtual machine needs and licensing configurations is crucial, as well as maximizing the use of Azure Hybrid Benefit. By conducting a case-by-case assessment, you can find the most cost-efficient solution that matches your usage pattern and needs. With a well-thought-out approach, companies can save up to 60% on Windows Server licenses.
Preparation for contract negotiations
For effective preparation for contract negotiations with Microsoft, several key steps are necessary: Start by gathering and analyzing your current Microsoft licensing data. This helps you understand your usage and future needs. Begin preparations well in advance to allow adequate time for research and strategy development. Communicate with the right contacts within Microsoft to conduct effective negotiations. Assemble a knowledgeable negotiation team with experience in Microsoft licenses and contract negotiations. Set clear goals and KPIs for the negotiations, and be prepared to make concessions. By following these steps, you can strengthen your negotiating position and maximize the value of your Microsoft Enterprise Agreement (EA).
Conclusion
These seven strategies offer valuable insights into managing and reducing your Microsoft licensing costs. From optimizing your Azure spending to reclaiming unused licenses, these approaches can help you save costs and improve your license agreements.
Want to learn more about how to optimize your Microsoft licenses? Feel free to contact us for expert advice and support.