Count and count well. This might be the tactic used when manually managing a small number of Microsoft 365 licenses. But what happens if automation isn’t used when CSP work on a Microsoft true-up for large-scale enterprises? Cue accuracy issues and unhappy customers.
One in five employees use an Office 365 service. With over 200 million monthly active users, it’s no surprise MSPs struggle to tame the license management beast. Unless processes are in tip-top shape and you have a team of service desk superstars, support tickets and license true-ups can fall through the cracks.
Imagine being the CIO of a small company questioning why $2,000 was wasted on unassigned Microsoft 365 licenses last month. There are Microsoft true-up lessons that can be learnt by all.
A Microsoft true-up is an evaluation of the qualified Microsoft 365 licenses CSPs assign to users.
A key concept in Microsoft 365 license management is that subscriptions and users are separate items. It’s common for discrepancies to exist between the number of employees and licenses, which is why CSPs need to ‘true up’ licenses.
According to studies, 56% of organizations Microsoft 365 licenses are mismanaged, and 27% of E5 licenses are unassigned. On top of this CSPs also juggle inactive licenses and those sitting at a higher tier than necessary. These statistics show there is room for improvement at license true-up time.
Companies rely on their CSPs to manage their IT ecosystem efficiently. If their Microsoft licenses end up mismanaged, there is a high possibility they will end up paying for ones they are not using or need. Which could be tricky to explain when billing queries come in, as it likely will fall down to not having the right tools to manage efficiently.
Customer satisfaction will decrease, and clients may end up moving to competitors. With this in mind, MSPs and cloud service providers could end up losing money if customers make the decision to leave.
So really, it’s very important for CSPs and managed service providers to stay on top of Microsoft true-ups.
Unmanaged licences can lead to huge, snowballing challenges for CSPs and customer across the following areas:
A user’s license is an extremely important part of an employee’s day-to-day. But it’s management is often low on a CSPs priority list due to other pressing urgencies. If time isn’t spent correctly allocating Microsoft 365 licenses, Microsoft true-ups sessions will be slower, with more time needed to correct inaccuracies.
But it’s a challenge to focus on these tasks when CSPs have long to-do lists and other growing customer requests.
Inactive, unassigned or underutilized Microsoft licenses will result in customers paying for licenses they no longer need, or aren’t using to their full potential. Not ideal. When managed correctly, organizations can have faith their CSP is in control of their license planning and say goodbye to unnecessary overheads.
But linking back to the earlier point, if the service desk hasn’t got the capacity for this, customers will likely have to dig deep into their financial pockets.
Technically not a challenge. Actually, giving customers control of license management is a blessing. But their access could lead to challenges if managed incorrectly.
Many CSPs think customer access automatically solves a lot of their problems. But if permissions aren’t set, Microsoft true-ups and management gets challenging.
This MSP insights report claims that 81% of MSP business processes have not been fully automated.
CSPs often face roadblocks when having to manually manage frequently changing licenses and users. Which is understandable when you have huge enterprise customers and tenant numbers, with the use of little or no smart technology support.
This shouldn’t be brushed under the carpet. An accurate Microsoft 365 license true-up is essential, as it will keep customers from straying to competitors. There will be others out there who do have tools which allow them to service customers with strong license management.
So it might be time to assess your software.
There are smart ways to make sure clients aren’t paying for Microsoft 365 licenses they’re not using and ensure the user is correctly matched to said license.
When in place, CSPs can breathe a sigh of relief when client Microsoft true-up obligations are summonsed, knowing that they can showcase licence results efficiently.