Fresh Thinking for Microsoft Licensing: The Key to Unlocking Value in 2025

Managing Microsoft licensing can sometimes feel like that forgotten loaf of bread at the back of the cupboard or a carton of milk pushed to the back of the fridge – easy to overlook until it’s too late and it’s gone off. But in 2025, neglecting your licensing strategy could be just as costly as letting both go to waste. Keeping your Microsoft licensing fresh isn’t just about avoiding waste; it’s about making sure you’re getting the most out of every pound you spend.

The good news? By taking a proactive approach now, you can ensure your licensing strategy is fresh, efficient, and perfectly aligned with your business goals. We’ve put together some best practices to help you navigate the changes and make the most of your investment.

1. Start Early

Yes, really—we did just say that. But it’s easy to put off, especially if you’re one of those businesses with January renewals still feeling the post-Christmas lull. Starting early gives you time to assess your current usage, forecast your future needs, and avoid scrambling last-minute. This applies especially if your business is about to grow to over 300 employees, understanding your licensing options well before your renewal is key.

2. Know What You've Got (And What You Need)

Are you paying for licences that are collecting dust? Around 30% of businesses unknowingly pay for Microsoft licensing they never use. Now’s the time to do a full audit of your current setup—what’s working and what’s not. This way, you’ll avoid overpaying while also making sure you’re not under-licenced when you need it most.

3. Keep Up-to-Date with Offers

Microsoft doesn’t stay still—especially when it comes to licensing. New AI tools, enhanced security features, and the latest software innovations could provide incredible value for your business. And don’t forget about licensing promotions! For example, moving from M365 Enterprise E3 to E5 could unlock a whole bundle of advanced features. Plus, Microsoft’s offering a 15% discount on E5 annual commitments from January to June 2025—now might be the perfect time to consider an upgrade.

4. Aligning Licensing with Your Business Goals

Licensing isn’t just a box-ticking exercise—it’s a strategic tool for your business. Whether you're scaling up, enhancing security, or diving deep into data, your licensing needs to support these ambitions. Make sure you’re not stuck with outdated options that don’t align with where your business is headed.

5. Prepare for Microsoft Updates

There are some important changes coming in 2025 that may impact your renewals—here’s what you need to know:

• Transition to Microsoft Customer Agreements (MCA-E)

Starting in January 2025, traditional Enterprise Agreements (EAs) will be replaced by MCA-E for enterprises. This change will simplify the licensing process and offer more flexibility. If you’re still on an EA, now’s the time to start planning your transition—or explore alternatives like the Cloud Solution Provider (CSP) programme.

• UK Price Reduction

From February 2025 UK customers will benefit from a 5-6% reduction in cloud subscription licensing costs due to a realignment exercise Microsoft have completed that reflects the UK to USD exchange rate.

• 5% Uplift in Licensing Costs

If you opt for monthly billing (annual agreement), expect a 5% price premium starting from April 1st. Thinking about switching to an annual plan? Now’s the time.

• Power BI Pricing Updates

If Power BI is a cornerstone of your analytics, be aware that Power BI Pro and Power BI Premium Per User prices will rise in April 2025. Update your budget accordingly to avoid any surprises.

• New Standalone Teams SKU

Microsoft is now offering licensing without Teams, meaning you’ll need to purchase Teams separately if it’s not included in your current agreement.

So why Intercity?

Let’s be real: licensing isn’t the most glamorous of topics. But just like you wouldn’t want to find that old loaf of bread or expired milk, you can’t afford to let your Microsoft licensing slip through the cracks. With the changes on the horizon in 2025, staying on top of your renewals isn’t just a smart move—it’s essential to avoid wasting money and missing out on valuable promotions.

At Intercity, we’re passionate about making things simple, efficient, and tailored to your needs. Whether it’s auditing your licences or crafting a plan that ensures every pound delivers maximum value, we’re here to make your Microsoft licensing journey as smooth, stress-free, and future-ready as possible.