When it comes to buying Microsoft 365 licenses, one question gets thrown around a lot: Where can I find the cheapest price? If you’re a small business owner or IT manager, you’ve probably scoured the internet and found every kind of questionable “discount” deal from third-party sellers that make you wonder, “Is this legit?”
Well, here’s the truth: The best deal isn’t hidden behind some sketchy discount code. The best legitimate price you can get on Microsoft 365 licenses is through annual commitments. While this can save you up to 20% on your licenses, there’s a trade-off: You sacrifice flexibility. Let’s break down exactly how this works and whether it’s worth it for your business to save on Microsoft 365.
Annual Licensing: The Best Price, but Not Without a Cost
Many businesses stick with monthly Microsoft 365 subscriptions because they offer flexibility—scaling up or down based on your current needs, which is key if your workforce fluctuates or your needs change rapidly. This month-to-month option, while convenient, does come with a higher price tag. In fact, Microsoft offers a 20% discount if you opt for an annual subscription. That means a predictable cost structure for the year, but you’re locked into those licenses.
Why the discount? Microsoft, like most SaaS providers, values long-term commitments. It’s a win for them because they get guaranteed revenue for a year. It’s a win for you (kind of) because you save on monthly costs. But here’s the kicker: while the savings can be appealing, the loss of flexibility might sting, especially if your business grows or shrinks faster than you expected.
The Flexibility You Give Up
With month-to-month licensing, you’re free to add or remove users as needed without any contractual obligations. For a business that’s scaling, or one that deals with seasonal workers, this flexibility can be a lifesaver. But with an annual commitment, you’re locked into paying for those licenses, whether you need them in six months or not.
If your headcount decreases, you’re stuck paying for unused licenses. If you hire more people mid-year, you’re still paying full price for those extra seats. So, while you’re saving 20% upfront, you could find yourself paying for services you don’t use—or scrambling to budget for more licenses at the standard price.
Why You Should Avoid Chasing “Deals”
It’s tempting to think there are hidden discounts or secret ways to get better prices for Microsoft 365. However, when it comes to Microsoft’s licensing, the prices are standardized, and any seemingly amazing deal outside official channels is likely too good to be true. These unofficial “deals” can often lead to problems, like revoked licenses or compliance issues that could land your business in trouble.
Your best bet is to stick with purchasing directly through Microsoft or certified, legitimate resellers. This guarantees you’re getting authentic licenses without the risk of potential headaches. While it may seem like there are other ways to save a few bucks, it’s important to prioritize security and reliability over chasing sketchy offers. Trustworthy channels ensure you’re compliant, supported, and, most importantly, not putting your business at risk.
How a Managed IT Services Provider Can Help You Make the Right Choice
Navigating Microsoft 365 licensing options can be confusing, especially when trying to balance cost savings with flexibility. This is where working with a Managed IT Services Provider (MSP) can be a game-changer.
An MSP doesn’t just help you pick a plan—they analyze your business needs and guide you toward the solution that fits best. Here’s how they can add value:
- Tailored Advice: An MSP will evaluate your company’s unique needs, from employee count to projected growth. They can help you decide whether committing to annual licenses or sticking with monthly flexibility is the smartest move for your business.
- Ongoing Support: Beyond just setting you up with the right licenses, an MSP provides ongoing support. They ensure your Microsoft 365 environment runs smoothly, help with troubleshooting, and make sure you’re leveraging all the tools you’re paying for.
- Cost Optimization: Managed service providers can keep a close eye on your licenses, ensuring you’re not overpaying for unused seats or missing out on any necessary upgrades. They’ll help you manage your licenses efficiently so that you’re always maximizing value.
- Simplifying the Process: You’ve got a business to run. Letting an MSP handle the complexity of Microsoft 365 licenses, along with providing expert support, saves you time and energy, so you can focus on growing your company.
If you’re feeling overwhelmed by the options, or simply want to make sure you’re not leaving money on the table, partnering with an MSP is the most effective way to ensure you’re making the best long-term decision for your business
Final Thoughts: Know Your Needs, Make the Call
In the end, the cheapest deal on Microsoft 365 licenses is no big secret—it’s all about making a commitment. If you’re willing to give up some flexibility, those 20% savings can make a significant impact on your IT budget. But before you lock into that annual plan, take a hard look at your team’s current and future needs.
Flexibility might just be the thing that saves you money in the long run.
Want a free Microsoft 365 Business license audit? Contact us.