Software subscription costs – Reach IT Management

Are you getting the best value from your software licensing spend?

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Microsoft Office

The world seems to be moving to a subscription model for most things. IT is no exception with SaaS (Software as a Service). There are many benefits of this model for both supplier and customer. For the supplier it brings a steady revenue stream every month. For the customer it avoids large capital expenditure. But it has to be right for the customer and that is not always the case.
Microsoft Office 365 is a great example of SaaS. You don’t need to buy any hardware and software for your Exchange email server, you only pay for what you need and depending on the level of the subscription you get to download the latest version of Microsoft Office Pro Plus. It is a fantastic product that for a small monthly fee per user gives you everything you need and more.
However, if you don’t need the “more” but are paying for it then it may not represent good value for you as a business. For instance Office 365 Business Premium gives you: –

  • Office Pro Plus to use on PC, Mac, mobile and tablet
  • Exchange mailbox
  • 1TB OneDrive cloud storage
  • Sharepoint online
  • Skype for Business
  • Microsoft Teams
  • Yammer

If the only thing you are using is your mailbox and Office on your PC, as many businesses are, then it may be the wrong product for you. By switching to the right product you could save £180 per computer/user over the course of 5 years (the average life of a PC). Whilst that alone might not sound a staggering amount when you start to multiply by the number of computers have it soon adds up.
For those using Office 365 Enterprise E3 licenses the figure is much larger. The saving over the same period could be as much as £516. For a modest business of 50 users that is over £5,000 per year!

Our licensing review saved one client £11,000 per year.

Obviously, if you replace your computers more frequently or have a good reason for wanting the latest version of Office on all your machines all the time then Office 365 Business Premium or E3 may still be the right product for you. But the point is your IT partner should assess each client’s needs individually rather than offering a blanket coverage of one size fits all.
Are you aware you can mix your subscriptions? Just because the Directors need Office 365 so they can save their files on OneDrive and access them on their iPad, laptop and mobile doesn’t mean everyone needs that functionality. You should only pay for what you need.
With a Microsoft Cloud Services Partner (like Reach I.T. Management) you can change the mix of licenses flexibly on a monthly basis. This way you are not trapped in the mix you thought would be right at day 1 for a whole year. You can simply change the license mix as required. A good partner will also manage the service for you.
If you want to know how we saved one client £11,000 per year and want to ensure you are getting best value from your software licensing spend, or if you have any other questions regarding licensing then please do call us for a chat on 01788 440024 or fill out the Contact form. If you would like a free licensing review then please fill out the License Review request form and we will get right back to you.