In the July issue of the Andersen Alumni Newsletter, I wrote about the potential pitfalls of Microsoft’s evolving licensing strategy, particularly the temptation to upgrade based on attractive discounts rather than demonstrated business value.
My message was straightforward: A discount isn’t necessarily a savings.
Now I’d like to ask organizations that have recently renewed or upgraded their Microsoft agreements a simple question:
Are you spending more or less on Microsoft today? And are you getting greater value from that investment?
A Lesson From My Home Renovation
Several years ago, while planning a major home renovation, I took advantage of a complimentary home energy audit offered by my utility company.
Before beginning construction, I wanted to understand where my home was wasting energy and which improvements would provide the greatest long-term benefit.
The audit identified opportunities that I incorporated into the renovation plans.
Today, my overall utility costs are approximately half what my neighbors spend.
The lesson wasn’t simply about purchasing more efficient equipment. It was about understanding my existing environment before making a significant investment.
The same principle applies to Microsoft licensing.
More Capabilities Don’t Necessarily Mean More Value
Microsoft continues introducing impressive capabilities across productivity, cybersecurity, collaboration, and artificial intelligence.
But additional capabilities don’t automatically translate into greater business value.
Consider a few questions:
· Are employees fully utilizing capabilities already included in existing subscriptions?
· Are you paying for overlapping security or productivity solutions?
· Are advanced licenses assigned to employees who don’t need them?
· Have promised productivity improvements translated into measurable business outcomes?
These aren’t exclusively IT questions. They’re financial and operational questions deserving attention from both the CFO and CIO.
The Opportunity for Savings Exists Before—and After—Renewal
Ideally, organizations should conduct an independent Microsoft licensing assessment before their next renewal.
Like my home energy audit, the objective is to identify inefficiencies before committing additional resources.
But what if you’ve already renewed?
The opportunity hasn’t disappeared.
A post-renewal benchmarking assessment can uncover underutilized licenses, redundant applications, opportunities for consolidation, and ways to improve productivity.
While contractual commitments may limit immediate adjustments, identifying opportunities today can produce operational improvements and position organizations for future savings.
Importantly, the analysis should extend beyond Microsoft’s invoice to include total technology spending.
From Negotiated Discounts to Measurable Savings
Organizations frequently celebrate negotiated discounts. But how often do they return six or twelve months later to determine whether those savings actually materialized?
A lower licensing price means little if unused capabilities and redundant products remain.
Conversely, a higher Microsoft licensing investment might reduce overall technology spending through consolidation and improved efficiency.
The objective isn’t simply to spend less on Microsoft. It’s to achieve greater business value at the lowest practical total cost.
A Final Thought
My home energy audit required little effort but helped inform decisions that continue delivering financial benefits.
The same discipline applies to enterprise technology.
Whether your Microsoft agreement is approaching renewal or you’ve recently upgraded, consider asking:
“We got the discount. But where are the savings?”
For Andersen alumni whose organizations have more than 250 Microsoft licensed users, I’d welcome the opportunity to arrange a complimentary licensing assessment or post-renewal benchmarking review.
Our objective is simple: Lower costs. Improve efficiency. Maximize existing investments.
Contact me at wturner@cardinalpoints.com.