M365 - License Optimization Center

When negotiating a Microsoft Enterprise Agreement (EA), most procurement and IT leaders focus on discounts and license flexibility. But for Legal and Compliance teams, the real risk lies in the contract language itself. The clauses you negotiate today determine how much protection, flexibility, and control your organization has for the next three years or longer. 

Beginning November 1, 2025, Microsoft will introduce a significant update to its commercial pricing strategy in what Microsoft calls its largest Microsoft Online Services pricing update since the introduction of single starting prices in 2023. This change will directly impact how organizations budget, renew, and negotiate Enterprise Agreements. 

Renewing your Microsoft Enterprise Agreement (EA) used to be a fairly predictable process. However, As ofJan 2025, Microsoft is actively forcing an EA transition to MCA. With the introduction of the Microsoft Customer Agreement (MCA) and ongoing changes to how licenses, Azure spend, and reporting are handled, the stakes are much higher. A rushed or incomplete review can lock your organization into unnecessary costs, eliminate true-down flexibility, and make future budgeting a nightmare. 

As an IT FinOps Consulting Leader working with enterprises of all sizes across diverse industries, I’vewitnessed firsthand the transformative power of effective financial operations (FinOps) and cloud cost management. These disciplines are no longer optional but critical for organizations aiming to optimize their cloud investments while maintaining agility and innovation. However, a lesser-discussed but equally important aspect of cost optimization is addressing duplicative technologies—tools like Zoom or GoToWebinar that overlap with capabilities already available through solutions like Microsoft Teams. In this blog, I will explore what FinOps and cloud cost management entail, why they matter, and why reviewing redundant technologies is a strategic imperative for cost-conscious enterprises. 

Once a significant component of Microsoft’s enterprise agreements, Software Assurance (SA) has steadily declined in value. Microsoft Software Assurance (SA)has long been marketed as a value-added benefit for enterprise customers, offering features like free upgrades, training vouchers, support services, and compliance flexibility. However, over the past several years, Software Assurance has undergone a significant transformation—one that is leaving many organizations questioning its current value. 

As organizations and their executives place an even greater emphasis on resiliency, IT leaders face growing pressure to reduce costs while ensuring their users have the necessary tools to work efficiently. One of the most overlooked, yet high-impact, strategies in Microsoft 365 license management is user profiling. Establishing a scalable license governance strategy early on can lead to substantial cost savings, increased operational efficiency, and a stronger return on investment.