Microsoft changed pricing and packaging across several commercial Microsoft 365 products from 1 July 2026. Existing customers move to new pricing at renewal. That makes renewal a useful moment to ask a better question than how much the licence has increased: are we using the right licences for the way the business now operates?

Our opinion is that Microsoft 365 should be treated as part of the business platform, not a collection of email subscriptions. A thoughtful renewal aligns cost with productivity, security and support.

Licensing should reflect the operating model

A growing business may have added remote work, stronger security requirements, mobile devices or new collaboration practices. Some users need broader protection and management. Others have a simpler role. The best result is not always the cheapest licence or the same licence for every person.

Licensing often grows organically. A new employee receives the same licence as the previous employee even when role, device use and security needs differ. A review lets us look at the people behind the licences.

A mobile employee, shared workstation user, manager and finance team member may rely on Microsoft 365 in different ways. The appropriate decision should reflect those differences without making the environment difficult to manage.

Security and productivity belong together

The way staff sign in, access information, use devices and collaborate influences both productivity and protection. A role handling sensitive information may need stronger controls. A mobile employee may benefit from device management and secure access that is less relevant to a fixed shared workstation.

We consider the complete environment instead of treating each product inclusion as isolated. This helps management understand which capabilities support a business requirement and which are unlikely to add meaningful value.

Renewal is an opportunity to tidy ownership

Licences may remain assigned to former users, shared accounts or seasonal roles. New services may be added without an agreed owner. A renewal review provides a natural point to examine those arrangements.

The objective is not simply to reduce licence numbers. It is to ensure each account has a purpose, the right access and an accountable owner. This supports cleaner administration and easier onboarding and offboarding.

We can also identify where separately purchased services overlap with capabilities already available. That does not automatically mean another service should be removed. It means management can decide with a clearer view of cost and value.

The conversation should end with a recommendation

A business owner should not need to compare long feature tables. Our role is to understand the operating model, identify material gaps or overlap and explain the options in practical terms.

Where a change is recommended, the business should understand the expected outcome, who is affected and how transition will be managed. In some cases, the existing mix will already be appropriate. Confirming that is still valuable.

A staged approach is often more practical

A review does not mean every improvement needs to happen at renewal. Some changes are straightforward, while others require planning, communication or changes to devices and access. A staged approach can protect continuity and make adoption easier.

We prioritise changes according to business value and material risk. A clear identity-protection gap may need early attention. A productivity capability requiring new habits may be introduced through a pilot. An overlapping service may remain until the business has confidence in the alternative.

This approach gives management a clearer budget conversation. Leaders can understand the essential baseline, recommended improvements and optional capabilities.

A well-managed renewal is less about purchasing and more about alignment. It connects people, devices, information, security and cost in one decision.

Before the next renewal, we can review the licence mix and explain the options in practical business terms.