Microsoft 365 Licences No One Uses? A 30-Minute Review
On July 1, 2026, Microsoft raised prices on several Microsoft 365 business plans. For many Ontario offices, that was the nudge to look closely at Microsoft 365 licensing for the first time in years. What most find is simple: they are paying for licences nobody uses.
The good news is that fixing it takes about 30 minutes and no special tools. This guide walks you through it step by step.
What changed on July 1
Microsoft bills Microsoft 365 in U.S. dollars. On July 1 it raised list prices on these popular plans:
- Business Basic: US$6 to US$7 per user per month
- Business Standard: US$12.50 to US$14 per user per month
- Microsoft 365 F3 for frontline staff: US$8 to US$10 per user per month
- Business Premium stayed at US$22 per user per month
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Microsoft said the increases reflect added security, management and AI features. Because billing is in U.S. dollars, Canadian invoices also rise and fall with the exchange rate. Your reseller's price in Canadian dollars may differ, so check your latest invoice.
On a 30 person office, paying for just five unused Business Standard licences now costs about US$840 a year. Paying for the wrong plan across the whole team can cost far more.
Where the waste hides
In our experience reviewing tenants for small businesses, waste usually sits in four places.
Former staff. When someone leaves, their mailbox is often kept "just in case" with a full licence still attached. Months later, nobody remembers why.
Plans that are too rich. Staff who only use email and Teams in a browser do not need desktop Office apps. Others need more security than their plan includes.
Duplicate tools. Many offices pay for Microsoft 365 and also pay separately for file sharing, video meetings or backup tools that overlap.
Forgotten add-ons. Extra storage, phone system licences or trial add-ons that converted to paid often go unnoticed.
A 30 minute Microsoft 365 licensing review for Ontario businesses
You need a Global Administrator or Billing Administrator account. Here is the process we use.
- Open the Microsoft 365 admin centre and go to Billing, then Licences. Note how many licences you buy and how many are assigned.
- Go to Users, then Active users, and export the list to a spreadsheet.
- Compare it with your current staff list from payroll. Mark anyone who has left, is on long leave, or never logs in.
- Check Reports, then Usage, to see who uses desktop apps, OneDrive and Teams. Low use often means a lighter plan fits.
- For former staff, decide what to keep. A shared mailbox under 50 GB does not need a licence, so a departed employee's mailbox can often be converted and the licence removed.
- Look for unassigned licences. Those are pure waste, and you can reduce the count at your next renewal.
- Put your renewal date in the calendar with a 60 day reminder. Annual commitments are hard to reduce mid-term.
Before removing anything, confirm your retention needs. Law firms, accountants and clinics may have record keeping duties that affect how you handle a departed employee's email.
Do not cut security to save money
Saving money is only half the goal. Many small businesses are on Business Basic or Standard when Business Premium would give them the security they now need. Premium adds device management, stronger identity protection and Microsoft Defender for Business.
That matters more each year. An Insurance Bureau of Canada survey found only 47% of small business owners feel ready for a cyber attack, and just 22% carry cyber insurance. Insurers now ask about multi-factor authentication and device protection before they quote. Money saved on unused licences can often fund the upgrade that closes those gaps.
Getting ready for Copilot
If you are thinking about Microsoft 365 Copilot, a licence clean up is the right first step. Copilot can surface any file a user has access to, so old accounts and loose sharing settings become a bigger risk. Clean up licences and permissions first, then pilot Copilot with a small group.
Quick checklist
- Assigned licences match current staff
- No licences on former staff mailboxes that could be shared mailboxes
- Each person is on the plan that fits their work
- No overlapping tools you pay for twice
- Multi-factor authentication is on for every account
- Renewal date is in the calendar with a 60 day reminder
FAQ
How often should we review our Microsoft 365 licences?
At least twice a year, and every time someone joins or leaves. A 60 day check before your annual renewal is the most important one.
Can we keep a former employee's email without paying for a licence?
Often, yes. Converting the mailbox to a shared mailbox under 50 GB removes the licence need. If you must keep the mailbox for legal reasons, talk to your IT provider about retention options first.
Is Business Premium worth it for a small Ontario business?
For most businesses handling client or financial data, yes. It adds device management and advanced threat protection that cyber insurers increasingly expect.
Want us to do it for you?
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Our team reviews Microsoft 365 tenants for Ontario businesses every week. We find unused licences, right-size plans and check the security settings that insurers ask about. Microsoft Cloud Services.
Book your professional technology infrastructure resilience assessment. Email [email protected], visit cynerra.ca or call (855) CYNERRA.
