Managing Microsoft licensing has never been simple but 2025 is bringing some of the biggest changes in years.
From pricing updates to Teams unbundling and new security requirements, organisations need to rethink how they approach renewals and optimise their licensing strategy.
In this blog, we’ll break down:
- What’s changing in Microsoft licensing
- The most common challenges businesses face
- Practical steps to reduce cost and risk
- How Cisilion helps clients turn complexity into clarity
Why Microsoft Licensing Feels Like a Moving Target
Microsoft’s licensing landscape is constantly evolving. These changes mean renewals aren’t just a tick-box exercise. They’re a strategic opportunity.
In 2025, key changes include:
From 1 November 2025, Microsoft will remove A–D price level discounts for Online Services purchased through Enterprise Agreement (EA) and Microsoft Products & Services Agreement (MPSA).
All customers will pay standardised list pricing at renewal or when adding new services.
Following regulatory changes, Microsoft now offers Microsoft 365 and Office 365 suites with or without Teams, plus standalone Teams licences.
This flexibility is great but it adds complexity.
Three-year CSP SKUs introduced in mid-2025 offer price stability and flexibility for organisations moving away from EA.
Copilot for Microsoft 365 is now widely available but it comes with new billing models that need planning.
The Hidden Challenges of Licensing Management
Even before these updates, organisations struggled with:
- Licensing Sprawl: Unused or unassigned licences, often tied to ex-employees or legacy projects, quietly drain budgets.
- Over-Licensing: Assigning premium SKUs like E5 to users who only need basic functionality.
- Compliance Risks: Poor governance can lead to audit penalties and security gaps.
- Process Gaps: Mergers, acquisitions and rapid scaling make it hard to maintain visibility and control.
Research shows that up to 56% of Microsoft 365 licences are inactive, underutilised or oversized, representing millions in wasted spend for large enterprises.
Security: The Non-Negotiable
Licensing isn’t just about cost. It’s about security.
Every user should have multi-factor authentication (MFA) enabled and organisations must ensure that identity governance and compliance controls are in place. Misconfigured licences can expose sensitive data and increase breach risk.
How to Take Back Control
Audit Your Environment
Identify unused, oversized or duplicate licences. Check for trial add-ons that converted to paid SKUs without notice.
Right-Size by Role
Map licences to user personas. Frontline workers rarely need E5. Executives and IT admins might.
Plan for Renewals Early
With EA discounts disappearing, explore CSP or MCA-E for flexibility and cost control.
Align Licensing with Strategy
Bundle licensing decisions with AI adoption, security posture and device refresh plans for maximum ROI.
Automate Governance
Use Microsoft tools or third-party platforms to monitor usage, enforce policies and prevent overspend.
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Why Partner with Cisilion?
At Cisilion, connected experiences are at the heart of what we do. Our consultancy-led approach helps clients:
- Conduct licensing and usage assessments
- Optimise costs without compromising capability
- Implement security best practices across Microsoft 365
- Stay ahead of changes with regular touchpoints and proactive advice
We go beyond procurement, helping you align licensing with your business goals from AI readiness to hybrid work strategies.
Need help navigating Microsoft licensing changes?
Microsoft licensing is complex but it doesn’t have to be costly or risky.
With the right partner and proactive planning, you can turn these changes into an opportunity to save money, strengthen security and unlock new capabilities.