Microsoft 365 is a powerful business tool — it boosts collaboration, security, and productivity. But here’s the catch: many companies are wasting money on licenses and premium add-ons they don’t actually need.
For SMBs and manufacturers in Idaho, that wasted spend can quietly add up to thousands of dollars every year.
The good news? You can stop the drain, simplify your tools, and still stay secure.
This guide shows how to use Microsoft 365 Security and Copilot add-ons smarter — so you’re not paying for features that sit idle.
Before you buy another upgrade, it’s worth knowing what you already have.
Even without premium tiers, Microsoft 365 comes loaded with strong built-in security and AI features.
That includes:
Identity and Access Management via Azure Active Directory (now Entra ID)
Multi-Factor Authentication (MFA) and Single Sign-On (SSO)
Microsoft Defender protection for email, attachments, and phishing
Conditional Access controls to prevent unauthorized logins
Data Loss Prevention (DLP) tools for protecting sensitive files
Compliance and auditing tools to monitor user activity
If you’re already paying for E1 or E3 plans, you likely have these built in. Knowing what’s included can help you avoid buying duplicate tools or unnecessary upgrades.
Most businesses don’t mean to overspend — it just happens quietly over time.
Here are the most common ways it occurs:
Many companies jump straight to E3 or E5 licenses for every user “just to be safe.” But not everyone needs those features. For example, your front desk or production staff likely don’t need advanced data governance tools.
Idle licenses are one of the biggest money leaks.
If an employee leaves, goes on leave, or changes roles, their license might stay active indefinitely. Over time, that’s like paying rent for an empty office.
Deleting a Microsoft 365 user doesn’t automatically reclaim their license. Unless you manually unassign it (or use automation), that seat stays billable.
Microsoft’s admin dashboard doesn’t flag duplicate licenses. That means someone might have an E3 license and an additional Defender add-on—even though it’s already included in E3. That’s money straight down the drain.
The key to saving money isn’t about cutting tools — it’s about aligning licenses with actual usage.
Here’s how:
Not everyone needs a top-tier license. Use built-in analytics or third-party usage reports to find low-activity users and move them to E1 or Business Basic plans. You’ll save money without reducing their access to essentials like email and Teams.
Set up an automated process that revokes access and unassigns licenses as soon as someone leaves.
You can connect Power Automate to HR or IT workflows so accounts, group memberships, and mailbox conversions all happen automatically.
If you’re using third-party antivirus, email scanning, or endpoint protection that mirrors Microsoft 365’s Defender or DLP, you may be paying twice for the same protection. Consolidate where you can to simplify management and reduce risk.
Shared or inactive mailboxes shouldn’t be consuming premium licenses. Convert them to free shared mailboxes or archive them to reclaim those seats.
Set up renewal alerts, license-usage reports, and policies that flag inactivity. That way, no license goes unchecked for months at a time.
For manufacturers and other SMBs, margins are tight — and recurring license waste eats into your budget.
Optimizing your Microsoft 365 setup gives you:
Better ROI on tools you already own
Simplified security management across departments
Reduced IT overhead and fewer vendor contracts
Smarter budgeting for future upgrades like Copilot AI
Whether you have five users or 500, these savings compound over time.
You don’t need to cut corners to save money — just manage smarter.
At TotalCare IT, we help Idaho businesses:
Audit Microsoft 365 licenses and uncover waste
Automate offboarding and governance
Consolidate overlapping tools for better security
Plan the best strategy for adopting Copilot and other AI features safely
Contact us today to schedule a Microsoft 365 license audit.
Let’s make sure you’re getting the maximum value — without overpaying for what you already own.