How Many Microsoft 365 Licences Does Your Business Actually Need?
Overpaying for unused licences is one of the most common IT billing problems DM1 finds when taking over from a previous provider. A proper licence audit pays for itself — usually within the first month.
Book a Licence AuditMost Perth SMBs Are Paying for Licences They Don't Need
Microsoft 365 licences are billed per user per month. Over time, businesses accumulate licences for staff who have left, contractors who no longer work there, shared accounts that duplicate an existing licence, and roles that don't require a full licence at all. DM1 audits your licence assignment as part of every new client onboarding — and almost always finds savings.
HOW DM1 BILLS FOR MICROSOFT 365
DM1 places all clients on a month-to-month subscription with no annual commitment. This means you can add or remove licences at any time as your team changes — with no lock-in, no break fees, and no minimum term.
Month-to-month pricing is slightly higher than an annual commitment, but DM1 absorbs the billing risk — as your CSP partner, DM1 is liable to Microsoft for your licences whether you pay or not. That risk, and the flexibility it gives your business, is part of what DM1 manages on your behalf. All prices quoted below are per user, per month, + GST, on a month-to-month basis.
DM1 has found Perth businesses paying for between two and eight unnecessary Microsoft 365 licences. Even at Business Basic rates (A$10.90/user/month + GST), two unused licences costs over A$260/year + GST. At Business Premium rates (A$39.48/user/month + GST), the same two licences cost nearly A$950/year + GST — for accounts no-one is using.
What DM1 Examines in a Microsoft 365 Licence Audit
A proper licence audit goes beyond counting users. DM1 looks at how licences are assigned, what permissions each user has, and whether the licence tier each user is on matches what they actually need.
Active Users vs Assigned Licences
DM1 compares the number of licences your organisation is paying for against the number of active users. The gap is almost always larger than the business owner expects.
Former Employee Accounts
When a staff member leaves, their Microsoft 365 account often stays active — and licenced — indefinitely. DM1 identifies these accounts and manages secure offboarding.
Shared Mailboxes and Room Accounts
Shared mailboxes in Microsoft 365 do not require a paid user licence. DM1 checks whether your shared accounts have been incorrectly assigned full licences.
Licence Tier Matching
Not every user needs the same licence. A reception staff member checking email may only need Business Basic (A$10.90/user/month + GST), while a manager working with desktop Office apps needs Business Standard (A$22.44/user/month + GST). DM1 right-sizes each licence.
Contractor and Guest Accounts
Contractor accounts are frequently created for short-term engagements and never deactivated. Guest access in Microsoft 365 can be managed without a paid licence in many cases.
Duplicate or Redundant Licences
Some businesses have been moved between licence tiers by a previous provider without the old licences being removed. DM1 checks for overlapping or duplicated licence assignments.
Business Premium Justification
Microsoft 365 Business Premium costs A$39.48/user/month + GST — significantly more than Basic or Standard. DM1 checks whether the additional security features — Intune, Defender, Conditional Access — are actually configured and in use. If not, the premium may not be warranted.
Add-On Licence Review
Additional licences for services like Microsoft 365 Backup, Audio Conferencing or Defender add-ons are checked against actual usage and business need.
Licence Problems DM1 Finds at New Client Onboarding
These are the most common licence billing issues DM1 encounters when a Perth business moves to DM1 for IT support:
Licences for staff who left months ago
The former employee's account exists, their licence is active, and the business has been paying for it since they left. DM1 identifies every account that hasn't been accessed in 30 days or more.
Full licences on shared mailboxes
A shared reception mailbox or a generic info@ address assigned a full Business Premium licence (A$39.48/user/month + GST) instead of being configured as a shared mailbox with no licence cost.
Business Premium features not configured
A business paying Business Premium pricing with none of the Premium features — Intune device management, Conditional Access, Defender for Business — actually turned on. Paying for features no one set up.
Previous provider assigned the wrong tier
A common finding: a previous provider set every user to Business Premium regardless of role, because it simplified billing. The business has been overpaying for years.
Contractor accounts from finished projects
Several contractor accounts from a project that ended 18 months ago, each with an active Business Standard licence (A$22.44/user/month + GST). No-one cancelled them because no-one knew they existed.
Licences purchased direct from Microsoft
Some businesses hold licences directly with Microsoft and others through their IT provider, creating split billing that obscures the total licence count. DM1 consolidates these into a single monthly bill.
How DM1 Conducts a Microsoft 365 Licence Audit
DM1 follows a structured process to review your licence assignment, identify waste, and recommend the right configuration going forward.
Access your Microsoft 365 Admin Centre
DM1 reviews your tenant's licence assignment in the Microsoft 365 Admin Centre — every account, its licence type, and its last active date.
Identify inactive and redundant accounts
Any account that hasn't been accessed in 30 days is flagged for review. DM1 cross-references with your staff list to confirm whether the account is genuinely unused.
Check shared mailboxes and room accounts
DM1 reviews every shared mailbox and room/resource account to ensure none carry an unnecessary paid licence.
Review licence tiers against actual usage
DM1 maps each active user's actual usage — do they use desktop Office apps? Do they need Intune? Do they need audio conferencing? — to identify tier mismatches.
Produce a licence recommendation
DM1 provides a plain-English recommendation: which accounts to remove, which licences to downgrade, and the monthly saving each change delivers — all quoted in AUD + GST.
Implement changes and confirm billing
DM1 implements the approved changes in the Admin Centre and confirms the updated monthly billing figure. Because DM1 manages licences on a month-to-month basis, changes take effect immediately — there is no wait for an annual renewal.
What DM1 Found When New Clients Came On Board
These are real situations discovered during DM1 new client onboarding. Business names are not used.
Why Perth Businesses Use DM1 for Licence Audits
✓ Authorised Microsoft CSP Partner
DM1 procures Microsoft 365 licences directly through the CSP program. We have full visibility of your licence assignment and can make changes on your behalf — no Microsoft support queues required.
✓ Month-to-Month — Change Any Time
Because DM1 manages all client licences on a month-to-month basis, licences can be added or removed at any time. Hire a new staff member today — add a licence today. No annual commitment, no break fees.
✓ No Conflict of Interest
Some IT providers benefit from higher licence counts — more licences means more margin. DM1's interest is in finding the correct number of licences at the correct tier for your business.
✓ Data Retention Before Deletion
Before removing any account, DM1 ensures that any data, emails or files belonging to that user are properly retained or transferred — so nothing is accidentally lost.
✓ Single Monthly Bill in AUD + GST
Clients who procure licences through DM1 receive a single monthly bill covering all Microsoft 365 licences — making licence management straightforward and audit-ready.
Find Out How Many Microsoft 365 Licences You're Actually Using
DM1 audits your Microsoft 365 licence assignment, identifies waste, and implements the right configuration — usually saving Perth businesses more than the cost of the audit in the first month alone.
Contact DM1(08) 6202 6012