# Are You Paying for Microsoft 365 Licenses No One Uses? > **Source:** https://klik.solutions/great-info/are-you-paying-for-microsoft-365-licenses-no-one-uses/ --- Microsoft 365 probably feels like one of those business expenses you set up once and stop thinking about. Employees need email. They need Teams. They need Word, Excel, SharePoint, OneDrive and other tools. So, you buy the licenses, assign them to employees, and move on. Until the renewal bill arrives. Then you may discover that you're paying for accounts belonging to people who left months ago, licenses with features nobody uses, or several tools that essentially do the same thing. And in 2026, there is another reason to take a closer look. [Microsoft introduced global pricing and packaging changes](https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates?utm_source=chatgpt.com) for commercial Microsoft 365 products effective July 1, 2026. Existing customers generally remain on their current pricing until renewal, with the updated pricing applying at their next renewal after July 1. Microsoft also says the changes come with new security, AI, storage and IT management capabilities across eligible plans. Actual pricing varies by product, country, currency and agreement.  That makes this a good time to ask a simple question: **Are you getting value from every Microsoft 365 license you're paying for?** ## **Why Software Costs Quietly Increase** Technology expenses grow slowly. A new employee joins, so you purchase another license. Someone changes roles, so you upgrade their plan. A contractor needs temporary access. Someone leaves the company, but nobody remembers to remove their license. Six months later, the business has dozens of subscriptions and nobody is completely sure who owns them, who uses them, or why they were purchased in the first place. This is how software becomes a quiet operating expense. Microsoft 365 is only one example. Businesses often pay for a combination of: - cloud storage - CRM software - Microsoft 365 licenses - cybersecurity products - accounting applications - PDF and document tools - communication platforms - industry-specific software - project management platforms Individually, each subscription may look reasonable. Together, they can become a significant recurring cost. ## **How Unused Licenses Stay Active** One of the easiest ways to waste money is to assume that an inactive user automatically means an inactive license. It doesn't. When an employee stops using their account, the license may remain assigned until someone deliberately removes or reallocates it. The same thing can happen with temporary employees, contractors, shared accounts and people who have moved into roles that no longer require the same tools. This is why license management should be treated as an ongoing IT process rather than something you look at once a year. ## **Employee Departures Create More Than a Security Problem** When an employee leaves, removing their access is obviously important for cybersecurity. But there's another issue that often gets overlooked: **What happens to their license?** A proper offboarding process should answer several questions: - Does another employee need it? - Has the license been reclaimed? - Has the user's access been removed? - Has important business data been transferred or retained? - Are there other subscriptions connected to that person's role? - Does the replacement employee need the same license level? This is particularly important when employees move between departments. Someone may have been given a more expensive license because their previous role required certain capabilities. When they move into a different position, nobody may revisit that decision. ## **How Duplicate Tools Appear Between Departments** Another source of unnecessary software spending is duplication. It usually happens because departments solve problems independently. Marketing adopts one project management platform, operations starts using another, sales chooses a separate collaboration tool. Before long, the company is paying for several platforms that overlap in functionality. So, before purchasing another application, ask: **Do we already own something that can do this?** ## **Microsoft 365's 2026 changes ** Microsoft's 2026 pricing and packaging update affects a broad range of commercial Microsoft 365 products, including Business Basic, Business Standard, Business Premium, Microsoft 365 Apps and various Enterprise and Frontline plans. Pricing changes took effect July 1, 2026, while new capabilities are being rolled out throughout 2026. For example, Microsoft's published U.S. commercial pricing shows Microsoft 365 Business Basic increasing from $6 to $7 per user per month and Business Standard from $12.50 to $14 for plans with Teams. Microsoft notes that pricing varies by country and currency, so businesses should check the pricing applicable to their market and agreement. The important point isn't simply that Microsoft 365 is becoming more expensive. It's that **every unnecessary license becomes more expensive too.** ## **What to Review Before Your Next Renewal** Create four lists: ### **1. Keep: **These licenses are actively used and clearly support a business need. No action required. ### **2. Remove: **These are licenses assigned to former employees, inactive accounts or users who no longer need them. ### **3. Downgrade: **These are active users who need Microsoft 365 but don't need everything included in their current plan. ### **4. Review: **These are the tricky ones. Maybe nobody is sure why the license exists. Maybe two departments use different tools for the same purpose. Maybe the user technically needs the software, but nobody has checked whether there is a better option. Don't delete these. Investigate them. ## **Build a Simple License Inventory** For every Microsoft 365 subscription or other major software subscription, record: **What to Record****Why It Matters****Owner**Someone should be accountable for the subscription**Active Users**Shows whether the software is actually being used**Monthly or Annual Cost**Makes the real expense visible**Renewal Date**Gives you time to make decisions before you’re committed**Business Purpose**Prevents “nobody knows why we have this" subscriptions You'll have the information you need **before** the renewal deadline arrives. ## **Don't Automatically Cut Licenses** There is one important caveat. License optimization should not mean deleting everything that isn't used every day. Some software exists for occasional but important tasks. Certain security, compliance or backup capabilities may not show high day-to-day usage but can still be critical to the business. The right question isn't: **“Does anyone use this every day?”** It's: **“Does the business need this capability, and is this the most appropriate way to provide it?”** ## **Turn License Management Into a Routine** The best time to review your software isn't the day before renewal. Make it part of your regular IT housekeeping. A simple quarterly review can catch: - role changes - unused features - inactive accounts - upcoming renewals - duplicate subscriptions - employees who have left - new software purchased without IT oversight This also helps prevent another common problem: software nobody clearly owns. ### **Not Sure What Your Company Is Paying For?** Klik Solutions can help review your current technology and software setup before your next renewal. We'll help you understand what you're paying for, who is using it, where tools overlap, and where you may have opportunities to reduce waste without sacrificing productivity or security. **Ready to take a closer look? Contact Klik Solutions before your next renewal.** ## **FAQ** #### **Does the 2026 Microsoft 365 price increase affect existing customers?** Yes. Microsoft's updated commercial pricing took effect July 1, 2026. Existing customers generally remain on their current pricing until their next renewal, after which the new pricing applies. The exact impact depends on the product, agreement, country and currency. #### **Should I downgrade every Microsoft 365 license that isn't fully used?** Not necessarily. A user may not actively use every feature in a plan but may still need specific security, management or compliance capabilities. Review the actual business requirements before downgrading a license. #### **What should we do with Microsoft 365 licenses belonging to former employees?** Include them in your offboarding process. After preserving or transferring any required business data and following your organization's retention policies, reclaim licenses that are no longer needed. They may be reassigned to new employees instead of purchasing additional licenses. #### **How often should we review our Microsoft 365 licenses?** A quarterly review is a practical starting point for most SMBs. At minimum, review licenses before major renewals and whenever there are significant staffing or organizational changes. Regular reviews make it much easier to catch unused accounts, duplicate tools and unnecessary upgrades before they become recurring costs.