This might be the tactic used when manually managing a small number of Microsoft 365 licenses. But what happens when CSPs are working on true-ups 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 true-up lessons that can be learnt by all.
A true-up is an evaluation of the qualified 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 organization’s 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. Companies rely on their CSPs to manage their IT ecosystem efficiently, therefore these statistics show there is room for improvement at license true-up time.
Unmanaged licences can lead to huge, snowballing challenges for CSPs and customer across the following areas:
The MSP Insights Report claims that 81% of MSPs 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 license true-up is essential to keep customers from straying to competitors who have tools in place which allow then for a stronger 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 true-up obligations are summonsed, knowing that they can showcase licence results efficiently.