The hidden costs of Microsoft 365 license auto-renewals – and how to avoid them

For many organisations, Microsoft 365 licenses are set to auto-renew on 28th February – if not before. It’s easy to let it happen. Perhaps you’ve other more pressing matters to focus on, or you might overlook the renewal period altogether. But the truth is, auto-renewing without reviewing your licences could be costing you far more than you realise.

10/16/25

90%
FASTER DELIVERY
Through intelligent automation and streamlined processes.
£1m+
Annual Saving
Through cloud optimisation and AI-driven efficiencies
50%
reduced onboarding
With AI knowledge systems and chatbots
2160
HOURS RECLAIMED
From repetitive tasks through AI process automation.

Organisations evolve. Teams grow or shrink, responsibilities shift, and business requirements change. Yet, most CSP subscriptions stay the same.

When Microsoft licences auto-renew without assessment, you’re almost always paying for more than you need. That’s why a quick, tailored licence audit is an important ‘rightsizing’ exercise to uncover unnecessary spend, limit cloud cost leakage, and deliver immediate financial benefit.

Employees could also be missing out on the latest Microsoft 365 features, compliance risks might have quietly crept in, and potential efficiencies would otherwise be left undiscovered. Just like car and home insurance policies, it’s important to ensure licenses are fit for purpose and offer maximum benefits for the money invested.

It goes beyond saving money

Given the price-sensitive nature of this conversation – and the fact that nobody can influence Microsoft’s pricing strategy – many organisations question the point of switching. However, in a 300 seat organisation, for example, annual savings can easily enter the thousands.  

Savvier firms are also thinking about who they partner with, given the added value many providers in industry are now keen to provide.

Given the cloud and AI expertise at the heart of CloudWize, our clients have access to expert insights, decades of combined enterprise-grade AI experience and the talents of some of the best engineers in the world.  

So, when you move your Microsoft 365 licences to us, we’ll also give you complimentary access to our strategic AI planning expertise. That means our team will help you identify wasted hours, streamline processes, and help your employees reclaim valuable time currently lost on manual workflows. This is actionable support designed to make 2026 your most productive year yet.

Why now?

The renewal period is fast approaching, and we know that a decision to switch feels like less of a priority when IT managers, directors and CTOs have a colossal ‘to do’ list. But the transfer process is much simpler than it used to be.

  • A no-obligation licence audit – our Microsoft licenexperts will review your current subscriptions and highlight areas of unnecessary spend, helping you make informed decisions before renewal. Following this 30-45 minute discussion, we’ll run a full review and provide a clear summary of your potential savings within a week – giving you the information you need well ahead of your renewal deadline.
  • Optimisation recommendations – we’ll ensure your licences align perfectly with your organisation’s needs, uncovering potential efficiencies and savings.
  • Simple transfer – If you proceed to switch, it usually takes only two emails to commence the transfer, and we’ll take care of the rest.  
  • Access to CloudWize expertise – as a client, you’ll gain strategic guidance from our AI and cloud specialists to streamline operations, automate workflows, and boost productivity.

Did you know..?

“Many organisations don’t realise that while you can upgrade Microsoft licences at any time, you can’t downgrade them once renewed. That’s why it’s essential to right-size your requirements before the renewal date – making sure you’re only paying for what you actually need,” explains CloudWize’s Microsoft license expert, Lee Thatcher.

“So while it’s tempting to leave this until next time, most IT managers recognise it’s worth addressing – the savings are certainly not something the finance director would want to miss out on.

“Especially given today’s economic climate, any opportunity to reduce spend and improve efficiency is worth exploring sooner rather than later.”

Making the switch with confidence

Not all CSPs are equal. CloudWize combines deep technical expertise with a true ownership mindset. By managing your licences with precision and insight, we help your organisation work more efficiently in the cloud, saving money, reclaiming time, and reducing unnecessary frustration.

Book your licence audit today to save money, achieve measurable productivity gains, and start reclaiming time and value for your business.

Outcomes

I love the energy that builds when clients begin to realise just what's possible with strategic AI thinking. The only limit is their imagination”

EDWARD, CLOUDWIZE CEO

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