8 Common Mistakes When Managing Microsoft 365 Licenses for Businesses

Microsoft 365 is an application and tools package that an organization of any size uses over the internet. The most popular tools include Word, Excel, Teams, and OneDrive, which help teams function better.

Though these advantages bring a lot, managing licenses was always a trouble for businesses. Many companies make mistakes that can lead to money wastage or underutilization of the tool.

Here are eight common mistakes and advice on how to avoid them.

1. Buying the Wrong Licenses

Many businesses buy the wrong licenses for their needs. Microsoft 365 has different plans such as Business Basic, Business Standard, and Enterprise. Each plan has its features and costs. Choosing the wrong plan can waste money.

How to avoid this: Consider what your business needs before buying.

For example:

• Do employees need desktop apps or just web versions?

• Are advanced security features needed?

• How many users will use the licenses? Compare plans and choose the best one for your company.

2. Overpaying for Unused Licenses

The second most common mistake is to pay for licenses no one uses. This is when businesses purchase more licenses than they need or fail to reassign licenses from former employees.

How to avoid this: Keep checking on the license usage. Microsoft 365 admin tools indicate the active licenses. When you detect unused ones, you deactivate them and save some money.

3. Not Assigning Licenses Properly

Licenses should be assigned to the specific users. Some companies forget this, and employees end up without access to the tools that they require. This causes frustration and delays the work.

How to prevent this: Hand out licenses when you purchase them. You can assign licenses to users with the Microsoft 365 Admin Center very easily. Everyone needs what they need to do their job.

4. Ignoring Security Features

Microsoft 365 features DLP and MFA. Many companies are not using these features, thus exposing their data.

How to avoid this: Use the security tools in your plan. Enable MFA for added security. If you require help with security features, consult an IT professional.

5. Not Training Employees

Most employees are not trained on how to use all the features of Microsoft 365. This leads to lost opportunities to work better.

How to avoid this: Give your team basic training. Focus on tools where they spend most of their time, such as Teams, SharePoint, and OneDrive. Utilize Microsoft's online resources or hire a trainer if necessary.

6. Forgetting License Renewals

Failure to renew licenses can mean that employees cannot use critical tools. This will disrupt your business and lower productivity.

How to avoid this: Set up automatic payments or reminders to renew licenses on time. Regularly check your billing information in the Admin Center to prevent any problems.

7. Ignoring Microsoft 365 Updates

Microsoft regularly updates its tools, adding new features and making security better. If you ignore these updates, you might miss helpful tools for your business.

How to avoid this: Stay updated on changes. Microsoft sends notifications about new features. Turn on automatic updates to keep your system current.

8. Not Using Shared Licensing Options

Some businesses don’t realize they can use shared licenses for part-time or temporary workers. This can lead to unnecessary costs.

How to avoid this: Look into shared licensing options to save money for employees who don’t need full access to Microsoft 365 tools.

Conclusion

It does not have to be hard to deal with Microsoft 365 licenses. Know your needs, monitor usage, and track updates to avoid common mistakes. Small adjustments save money and can improve productivity. Take some time to review your setup and make the necessary changes.

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