Common Sources of Microsoft 365 License Waste
- E5 shelfware: Users on E5 who don't use Defender XDR + Purview + Power BI Pro + Teams Phone (the E5-specific features). These users should be on E3 + targeted add-ons.
- Wrong-tier assignment: Knowledge workers on F1/F3 (frontline SKUs without Office Pro). Frontline workers on E3 (overkill on full Office).
- Inactive licenses: Departed employees, long-term leave, contractors. Should be reclaimed within 30 days.
- Redundant add-ons: Standalone Microsoft Teams Phone + Audio Conferencing licenses on users who get them bundled in E5/E7.
- Microsoft 365 E5 Compliance + Security separate add-ons: Users on E3 with E5 Compliance + E5 Security add-ons costing more than just upgrading to E5.
- Power BI Pro standalone: Users with Power BI Pro standalone licenses who would get it bundled in M365 E5.
Fixed-Fee Pricing
Frequently Asked Questions
What is the Microsoft 365 License Optimization Assessment?
A 3-week fixed-fee engagement that audits your Microsoft 365 license utilization, identifies shelfware (paid-for-unused licenses), right-sizes E3 vs E5 vs E7 per user persona, and models the Copilot adoption opportunity. Output: documented 12-24 month license optimization roadmap with quantified savings projection. Typical finding: 15-30% reduction in annual M365 spend.
How much can we save on Microsoft 365 licenses?
EPC Group typical finding across 70+ Fortune 500 assessments: 15-30% annual M365 spend reduction. Sources: shelfware (E5/E7 licenses on users who don't use Defender XDR or Copilot), wrong-tier assignment (E5 on users who only need E3), redundant add-ons (separate Audio Conferencing on E5 users who get it bundled), and Microsoft Partner Network EA negotiation leverage.
How long does the license optimization assessment take?
3 weeks fixed timeline. Week 1: license inventory + utilization pull from Microsoft 365 admin center + usage analytics. Week 2: persona right-sizing + shelfware identification + Copilot opportunity model. Week 3: deliverable + executive readout + EA renewal negotiation prep.
What deliverables come from the M365 License Optimization Assessment?
4 documents: (1) Current state license inventory + utilization report, (2) Shelfware report (paid licenses not actively used), (3) Persona-based right-sizing recommendation (E3/E5/E7/F1/F3 per user role), (4) 12-24 month license optimization roadmap with quantified savings + EA renewal negotiation leverage.
How much does the M365 License Optimization Assessment cost?
It is a fixed fee scoped to tenant size (three bands: under 5,000 users, 5,000-25,000 users, 25,000+ users) and quoted after a short scoping call. No hidden fees. ROI: typically 5-15× the engagement cost in year 1 savings.
When should we run this assessment?
Optimal timing: 60-90 days before EA renewal date — gives time to negotiate from a position of data-driven leverage. Second best: 90 days before planned Microsoft 365 Copilot rollout — model E5 vs E7 economics + Copilot opportunity. Anytime: as part of annual IT spend review.
Will this assessment recommend Microsoft 365 E7?
Sometimes yes, sometimes no. EPC Group is vendor-neutral on the E5-vs-E7 decision. For Copilot rollouts to 200+ users with custom Agent 365 governance needs, E7 typically wins on bundle math. For tenants without Copilot strategy or with significant frontline workforce, E5 + targeted Copilot add-on or E3 + selective add-ons may be the right answer.
Can the assessment include Microsoft 365 Copilot business case?
Yes. Standard scope includes Copilot adoption economic model: per-persona ROI projection, M365 E7 vs E5+Copilot comparison, CSP promo timing (through Dec 31 2026), executive business case template.
Related Resources
- • Microsoft 365 E7 vs E5 vs E3 Comparison
- • October 13, 2026: Office LTSC 2021 end of support meets Windows 10 ESU Year 2 — the three-week triage plan
- • Microsoft 365 Copilot Readiness Assessment
- • Microsoft Copilot Pricing Guide
- • Microsoft 365 Consulting Services
- • verified reviews across 6 public platforms
Schedule Your License Optimization Assessment
3 weeks. Fixed-fee. 15-30% typical savings. ROI 5-15× the engagement cost.