Gentle reminder Microsoft 365 license prices increase in July: How to audit your licenses and plan purchases accordingly

Microsoft 365 license prices will increase starting July 1st. If you manage these licenses, you need to audit your current usage and plan any purchases before then to avoid higher costs. This article explains the price changes, how to review your licenses, and how to optimize your buying decisions to keep expenses under control.

What exactly is changing with Microsoft 365 license prices in July?

Microsoft announced a price increase effective July 1st for several Microsoft 365 license types. This affects business and enterprise plans, including Business Basic, Business Standard, Business Premium, and Enterprise E3 and E5 licenses. The increase reflects additional services and enhanced security features but will raise your monthly or annual cost per user. Some license plans will see larger increases than others, so knowing what your organization currently uses is crucial. You have until July 1st to renew or buy licenses at the current prices before the new rates apply.

How do I audit my current Microsoft 365 licenses effectively?

To audit your licenses, start by logging into the Microsoft 365 admin center with your admin credentials.

1. Navigate to the "Users" section and select "Active users" to see who has licenses assigned.
2. Review each user's assigned license type and compare it to their actual needs based on their role and usage.
3. Under "Reports" > "Usage," check usage reports to identify users with little or no activity, which might indicate unused licenses.
4. Export user and license data to a spreadsheet to review and spot inconsistencies or opportunities to consolidate licenses.
5. Identify users with multiple licenses or overlapping features that could be streamlined.
6. Check license expiration and renewal dates to avoid unexpected lapses.

This audit will give you a clear picture of your license usage and highlight where you can reduce or reassign licenses before the price increase.

What should I consider when planning purchases before the price increase?

If you need additional licenses, buying them before July 1st locks in the current pricing. When planning purchases, consider:

• Matching license types to user needs. Some users may only require Business Basic, while others need Business Premium or Enterprise plans.
• Estimating your expected headcount growth over the next 6 to 12 months and buying enough licenses accordingly.
• For temporary or seasonal staff, consider short-term licenses or subscriptions you can cancel when no longer needed.
• Checking if your organization qualifies for volume licensing or commitment plans, which may offer better pricing.
• Timing purchases to align with your billing cycle for maximum benefit.

Careful planning helps you avoid paying higher prices after July and ensures your team has the licenses they need.

How can I avoid common mistakes during license audits and purchases?

Avoid these common errors:

• Buying extra licenses "just in case" without data backing, which leads to unnecessary costs.
• Missing renewal dates, causing coverage gaps or last-minute purchases at higher prices.
• Overlooking opportunities to downgrade or consolidate licenses, such as moving users from Business Premium to Business Basic if they don’t use advanced features.
• Forgetting to remove expired trial or temporary licenses that still appear in your inventory.
• Failing to communicate changes with stakeholders, which can cause confusion or access problems.

Taking these steps ensures a smoother and more cost-effective license management process.

What are the next steps after auditing and planning?

After completing your audit and purchase planning:

• Share your findings and plans with finance and department heads to align budgets and expectations.
• Schedule license purchases before July 1st to secure current pricing.
• Set reminders for license renewal dates to maintain continuous coverage.
• Document your license management procedures to streamline future audits and budgeting.
• Regularly monitor license usage and adjust as your organization changes.

Following these actions will help you manage Microsoft 365 licenses efficiently despite the price increase.

Conclusion

Auditing your Microsoft 365 licenses now and planning purchases ahead of the July price increase lets you control costs and avoid unnecessary expenses. Review your license usage carefully, make informed purchase decisions, and coordinate with your team to keep licensing expenses manageable and access uninterrupted.

Frequently Asked Questions

Can I buy Microsoft 365 licenses now and activate them later?

Licenses you purchase usually become active immediately or as soon as you assign them to a user. While you can buy licenses before July to lock in current prices, activating them later depends on your licensing agreement and Microsoft’s policies. Check your contract for specific terms.

What if I find unused licenses during the audit?

If you find unused licenses, consider reassigning them to active users or removing them before renewal to avoid paying for unused seats. This can reduce your costs, especially before the price increase takes effect.

Are all Microsoft 365 licenses affected by the price increase?

No, the price increase mainly affects business and enterprise plans like Business Basic, Standard, Premium, and Enterprise E3 and E5. Some standalone or specialized licenses might not be affected. Verify your specific licenses against Microsoft’s announcements.

How often should I audit my Microsoft 365 licenses?

Regular audits—quarterly or twice a year—help keep your license usage aligned with your organization's needs and budget. More frequent reviews are helpful during periods of growth or organizational change.