Microsoft has announced pricing and packaging updates for Microsoft 365 commercial subscriptions effective from 1 July 2026, with many organisations likely to see increases in the region of 10% to 15% depending on their licence mix. For IT and commercial leaders, that makes now the right time to review licensing, storage, and service usage to reduce avoidable spend before renewal. In many cases, effective Microsoft 365 governance can reduce overall subscription costs by as much as 20% while also improving visibility and control.
1. Recycle licences from leavers
One of the most common sources of unnecessary spend is licences assigned to employees who have already left the business. If user accounts are not reviewed promptly as part of the offboarding process, subscriptions can remain active for weeks or even months. A regular review of inactive users and licence assignments helps organisations identify licences that can be recovered and reallocated instead of purchasing new ones.
2. Identify surplus licences that have never been deployed
Many organisations buy ahead for growth, projects, or seasonal demand, but over time this can lead to a pool of paid-for licences that have never actually been assigned. Reviewing unallocated subscriptions across your Microsoft 365 estate can highlight immediate savings opportunities. Before July 2026 renewals, it is worth checking whether those spare licences are genuinely needed or whether they should be removed from future commitments.
3. Right-size licences that are over-specified
Not every user needs the same Microsoft 365 package. In many environments, some users are assigned licences with apps and services they rarely or never use. For example, there may be users with full suites who do not require Teams or advanced features included in higher-cost plans. Mapping real usage against licence type can reveal opportunities to move users to more suitable subscriptions without affecting productivity. With Microsoft’s July 2026 changes varying by product, right-sizing is one of the most practical ways to limit the impact of price rises.
4. Control SharePoint sprawl and storage costs
Licence optimisation is only part of the picture. SharePoint sprawl can also increase Microsoft 365 costs, especially where old project sites, duplicate workspaces, and inactive content continue to consume storage. Without clear governance, unused sites can build up quickly and create avoidable overhead. A structured review of inactive SharePoint sites, retention requirements, and archival options can reduce storage growth and support better information management at the same time.
Why regular reporting matters
Typical savings of up to 20% of total Microsoft 365 subscription cost can be achieved through effective licence management, storage governance, and regular automated usage efficiency reporting. The key is not to treat optimisation as a one-off exercise ahead of renewal, but as an ongoing management discipline. Automated reporting helps identify dormant accounts, underused services, unassigned licences, and storage trends early, making it easier to take action before unnecessary costs accumulate.
Get a free Microsoft 365 assessment from TBSC
TBSC is a leader in Microsoft 365 optimization. With years of experience and hundreds of Microsoft 365 assessments undertaken TBSC helps organizations of all sizes to optimize their Microsoft 365. If your organisation wants to reduce the impact of Microsoft 365 price increases due in July 2026, now is the time to act. In just 10minutes a proactive assessment can uncover quick wins, reduce waste, and improve visibility across a Microsoft 365 environment. For your free assessment, contact TBSC on info@tbsc.cloud.
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