Microsoft 365 is integral to digital productivity for millions of organizations, yet most are failing to manage it effectively. Findings from Gartner, Forrester, and TBSC-aligned reports (2024–2025) indicate that only 10–15% of organizations achieve benchmark-level management across licensing, security, usage, and data protection.
Key Insights:
- Only 10–15% of organizations actively optimize licensing, security, usage, and backups at a benchmark level.
- 30–40% partially manage some areas, such as enabling MFA or performing occasional audits.
- 45–60% operate reactively, often overspending and leaving security gaps unchecked.
This fragmented approach means up to 90% of organizations fail to leverage the full value of Microsoft 365 while exposing themselves to significant risks.
What’s Covered:
This blog explores:
- What benchmark-level management entails
- Common reasons organizations fall short
- Critical risks associated with poor management practices
Get the full details in the blog.
The Hidden Risks of Poor Microsoft 365 Management—and Why Only 10–15% Get It Right
Microsoft 365 is the backbone of digital productivity for millions of organizations. Yet, despite its ubiquity, most companies are failing to manage their Microsoft 365 environments to industry-standard or best-practice benchmarks. According to recent findings from Gartner, Forrester, and TBSC-aligned partner reports (2024–2025), only 10–15% of organizations manage their Microsoft 365 ecosystems effectively across licensing, security, usage, and data protection.
This blog explores what benchmark-level management looks like, why most organizations fall short, and the significant risks they expose themselves to by doing so.
The Current State: A Fragmented Microsoft 365 Landscape
Proportion of Organizations by Management Maturity:
- 10–15%: Actively optimize licensing, usage, security, and backup—benchmark or best-practice level.
- 30–40%: Partially manage some areas (e.g., MFA enabled, occasional audits).
- 45–60%: Operate reactively with minimal insight, significant overspending, and security gaps.
This means up to 90% of organizations are leaving critical value—and risk—on the table.
Why So Few Reach Benchmark-Level Management
1. Lack of Time (~60%)
Most IT teams are overwhelmed with daily operations. Tasks like ticket resolution, hardware management, and user support take precedence. Microsoft 365 optimization, unless triggered by an incident, remains sidelined as a “nice-to-have.”
2. Lack of Skills and Specialized Knowledge (~50%)
Microsoft 365 administrators often lack deeper expertise in areas like:
- Advanced licensing models and entitlements
- Microsoft Secure Score optimization
- Backup and disaster recovery policies
- Threat protection and compliance configuration
Smaller organizations are especially vulnerable, as they typically don’t employ dedicated Microsoft 365 experts.
3. The Complexity of Microsoft’s Ecosystem (~45%)
Navigating Microsoft 365 is no small feat:
- Licensing is confusing (E3 vs. E5, add-ons, NCE changes, etc.)
- Admin centers are siloed (M365 Admin, Security Center, Compliance Center), making unified oversight difficult.
- Frequent changes in the Microsoft roadmap demand continuous learning.
4. Cost Optimization Isn’t a KPI (~30%)
Cost control often falls outside the traditional IT mandate. Without KPIs that tie to license efficiency or cost reduction, there’s little incentive for IT to dive deep into optimization. Finance teams, meanwhile, are typically disconnected from the day-to-day configuration realities.
5. Misconceptions About Microsoft’s Built-in Protections (~25%)
Many organizations assume Microsoft handles everything, including:
- Data backups
- Ransomware protection
- Compliance enforcement
In reality, Microsoft operates under a shared responsibility model. The company provides the platform, but customers are responsible for backup, security configuration, and compliance enforcement. Underestimating this can lead to serious data loss or breach exposure.
The Risks of Not Managing Microsoft 365 to Benchmark Levels
Operating below best-practice levels opens your organization to a variety of tangible risks:
Security Vulnerabilities
Poorly configured security settings, outdated policies, and lack of threat monitoring can lead to breaches or compliance failures—especially in regulated industries.
Uncontrolled Costs
Organizations often pay for licenses they don’t use or underutilize premium features they don’t configure. Without regular audits and optimization, cost inefficiency becomes baked in.
Data Loss
Relying solely on Microsoft’s default retention settings can lead to irrecoverable data loss, especially in the case of accidental deletions or ransomware attacks.
Compliance Failures
Incomplete logging, insufficient data retention, and lack of policy enforcement can put organizations at odds with regulations like GDPR, HIPAA, or FINRA.
Reduced ROI from Microsoft 365
You’re paying for a powerful platform—E5 customers in particular are sitting on a goldmine of features (DLP, Defender, Purview) that often go unused. That’s wasted potential and poor strategic alignment.
Moving Toward Benchmark-Level Management
If you’re unsure where your organization stands, consider:
- Microsoft Secure Score: Use it as a baseline and aim to improve it incrementally.
- License Reviews: Conduct quarterly audits to identify unused or misaligned licenses.
- Backup Strategy: Invest in third-party solutions for full coverage, especially for Exchange, SharePoint, OneDrive, and Teams.
- Training & Upskilling: Prioritize certification and education around M365, security, and compliance.
- Partner Support: Engage specialized partners who can provide visibility, automation, and continuous governance.
Conclusion: Don’t Let Microsoft 365 Run on Autopilot
With Microsoft 365 touching every part of your organization—communications, collaboration, data, and compliance—it’s no longer acceptable to “just keep it running.” Management at a benchmark level is essential not just for efficiency, but for protection against a growing array of cyber, financial, and operational risks.
If you’re part of the 85–90% still operating reactively, now is the time to act.
For a free 365 health-check contact info@tbsc.cloud or visit www.tbsc.cloud
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