Microsoft 365 licenses increase in cost – what are the alternatives? A quick CIO guide on making smart decisions

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by | November 30, 2021


Starting March 1, 2022, most Microsoft 365 business and enterprise subscription plans will see a price increase of up to 20%, as confirmed by Microsoft earlier this year.

If you are a business that is considering moving to cloud, however, not sure if a complex migration process, higher license costs and possible data security issues are worth it, there is an alternative way.

Firstly – identify your software needs

Identify what software functionality is currently in-use at your organisation – is it sufficient to fulfil your daily business requirements or perhaps some features are not even used?

If so, it is possible that a latest software version will not provide much value and you might be overpaying for a software that, in fact, is not going to be adopted to its full potential?

Secondly – consider the risks

There are rational reasons why companies opt for on-premises solutions – reluctance to store sensitive data in the cloud due to possible security issues is one of them.

The unpredictability is another – Xorlogics states that: “If you buy on-premises software, you can use it even in times when the budget is tight. Cloud rental models, on the other hand, are an ongoing cost factor for IT. In the extreme case, this means: If you can no longer pay, the services will not be available anymore.” Source link

Lastly – think about your budget

Software licences that you no longer need or have never used are dormant capital. On the other hand, buying used software will result in significant cost savings of up to 70%.

Both scenarios are possible, legal and will free-up and liquidate your IT budgets, allowing you to distribute the funds elsewhere – investing in new technology, funding internal IT projects, employee up-skilling, and other.

In conclusion

A second-hand software comes with multiple advantages: older software versions are more reliable, tested and provide better compatibility with specific applications.

Buying second-hand licenses enables you to tailor your licensing arrangements to suit your specific requirements and your long-term IT plans.

In concrete terms, it enables you to acquire the precise software version that you need for your IT infrastructure, which may well be a specific version that predates the latest release and saves you the unnecessary expense of acquiring the newest edition of a licenses with downgrade rights.

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