As hybrid work becomes the norm, Microsoft 365 has become an essential part of communication, collaboration, and productivity for most organizations.
For CTOs, understanding the ins and outs of Microsoft 365 is critical to ensure effective management, cost-efficiency, and security. Here’s what every CTO should focus on to maximize the value of Microsoft 365 in their organization:
1. Asset Inventory and License Allocation
Knowing exactly what resources are available is the first step in effective management. This starts with an up-to-date inventory of Microsoft 365 assets, particularly licenses:
• License Allocation: CTOs should know how many licenses the organization holds, and just as importantly, ensure that they are all effectively allocated. Unused licenses indicate potential waste, while a shortage may impact productivity if employees lack access to necessary tools.
• Inventory Updates: Regularly updating the asset inventory helps track changes as employees join or leave the organization. Understanding these numbers ensures that licenses match the number of active users, preventing both overspending and potential service disruptions.
2. License Management and Optimization
License management is not just about ensuring users have licenses; it’s also about optimizing them for specific roles and needs.
• License Types: Microsoft 365 offers various license types, including E1, E3, and E5, each with different capabilities and costs. CTOs need to confirm that employees are using licenses suited to their job roles. For instance, E5 licenses, which come with advanced security and analytics tools, may not be necessary for every user.
• Optimization: Regular audits of license usage can identify if certain features are underutilized or if a more cost-effective license type could meet a user’s needs. Optimizing license allocations based on actual usage can lead to significant cost savings without sacrificing productivity.
3. Lifecycle Management: Tracking and Recycling Licenses
Lifecycle management is essential to avoid unnecessary licensing costs and ensure a smooth onboarding process for new employees.
• Deprovisioning: CTOs should have a well-defined process for deprovisioning licenses when employees leave. Failing to track leavers can result in unused licenses that still incur costs.
• License Recycling: Recycling licenses from departing employees ensures that new hires can get up and running quickly without the need to purchase additional licenses. This also requires collaboration with HR to stay informed on staffing changes, allowing licenses to be efficiently reassigned.
4. Cost Management and Budgeting
Keeping Microsoft 365 costs in check requires strategic planning, particularly around license renewals and usage patterns.
• Cost Reduction Opportunities: Reviewing Microsoft 365 spending on a regular basis helps identify areas where costs could be reduced. For example, moving certain users to lower-tier licenses or consolidating unused licenses before renewal.
• Renewal Management: With structured renewal management, CTOs can avoid unnecessary costs and even negotiate better rates based on usage and requirement trends. Having a clear budgeting process allows the CTO to project future costs accurately, helping maintain financial predictability.
5. Security Posture and Alert Management
Microsoft 365 provides various tools to enhance security, and understanding these tools is crucial for protecting organizational data and infrastructure.
• Secure Score Benchmarking: The Microsoft Secure Score provides a security posture assessment for the organization’s environment. CTOs should regularly review this score and implement improvements to meet or exceed industry benchmarks.
• Threat Monitoring: CTOs need to monitor and respond to alerts related to potential threats like phishing, malware, and unauthorized access attempts. This includes monitoring how users access the system, particularly on BYOD (Bring Your Own Device) devices, which may not always be under organizational control.
• Closing Vulnerabilities: Ensuring that open doors are closed, such as by enforcing multi-factor authentication and restricting risky access points, is essential. CTOs should also assess if the current security configurations are sufficient to prevent attacks and maintain data integrity.
6. Data Management and Backups
Data within Microsoft 365 spans various applications like Teams, OneDrive, and SharePoint, and ensuring its security and recoverability is key.
• Data Volume and Storage: CTOs need a clear view of how much data is in the Microsoft 365 environment and which applications contain the bulk of this data. This helps with planning for storage needs and optimizing data handling practices.
• Backups: Although Microsoft 365 includes data retention options, relying solely on these may leave gaps. A structured backup plan ensures data integrity, compliance with data retention policies, and quick recovery in case of data loss or corruption. CTOs should regularly verify that data is clean and backed up according to best practices.
7. Overall Efficiency and Benchmark Comparisons
Knowing how effectively Microsoft 365 is used across the organization helps CTOs drive improvements and ensure employees are fully equipped to leverage the platform.
• Usage Efficiency: Metrics on application use and feature adoption can reveal if key tools are underutilized. For example, are employees using collaboration tools like Teams effectively? CTOs can use this information to identify areas where training or guidance might improve productivity.
• Benchmarking: Comparing usage metrics and adoption rates with industry benchmarks provides insight into how the organization’s Microsoft 365 usage stacks up against others. This comparison helps identify opportunities for improvement, as well as areas where the organization may be leading.
The Power of Continuous Monitoring
For CTOs, continuous monitoring is key to managing Microsoft 365 effectively. Key metrics should be automatically generated and reviewed regularly to track progress, identify trends, and take action where needed. Whether it’s monitoring license usage, security threats, or data backup integrity, a proactive approach allows the CTO to prevent issues before they impact the organization.
Conclusion
Microsoft 365 is foundational to modern hybrid work, and its effective management can make a significant difference in productivity, cost control, and security. For CTOs, “what gets measured gets managed” is especially true for Microsoft 365. With a structured approach to asset inventory, lifecycle management, security, and cost control, CTOs can ensure that Microsoft 365 remains a powerful enabler of productivity, while also keeping the organization’s needs and budget in balance.
Smarter 365 Ecosystem
TBSC has introduced the Smarter 365 Ecosystem to provide visibility of Microsoft 365 KPIs, benchmarking and remediation of issues. Using AI and automated analysis of Microsoft 365 along with benchmarking against industry best practices Smarter 365 Ecosystem ensures optimization of security, cost and usage.
For further details or to arrange a demonstration contact [email protected]