The world of small and medium-sized businesses (SMEs) in Australia is driven by efficiency and productivity, essential for long-term growth and success. In this quest, managing day-to-day operations, enhanced collaboration, and data security can become challenging. Obtaining the right Microsoft 365 License offers a powerful solution to streamline business processes first.
Microsoft’s suite of tools is not just a technological asset, but a powerful catalyst for Australian businesses, especially when combined with the expertise of a Managed Service Provider (MSP) like Kloudify. Let us try to understand how Microsoft 365 licensing works.
What is the Need to Understand Microsoft 365 Licensing?
Microsoft 365 is a comprehensive suite of productivity tools and cloud-based services that comes in different subscription plans, which vary based on the number of features and services offered. Microsoft technologies are integral to the technological infrastructure of most growing SMBs, becoming a dependency that puts businesses at risk in two ways: first, catering to escalating costs linked to the constant need for newer and more expensive sets of upgrades. Second, there is the continued threat of a Microsoft audit for license non-compliance – something that is inevitable. This justifies the need to understand Microsoft licensing.
Microsoft 365 Licensing and SMBs:
Microsoft offers two main types of licenses: perpetual licenses and subscription-based licenses.
Perpetual licenses are one-time purchases that allow the software to be used indefinitely, without requiring additional payments. However, this comes with limitations regarding support and updates, which often attract extra costs. Microsoft 365 Subscription licenses provide users with continuous updates
Licensing Options for Small and Medium-Sized Businesses:
| Microsoft 365 business | All-in-one solution combining Office applications with cloud services, security features, and device management tools. Ideal for small teams that require collaboration tools and access to essential applications. |
| Windows Server licensing | Windows Server licensing provides essential tools for managing networks, applications, and data on-premises. Editions available: Essentials, Standard, and Datacentre. |
| Microsoft Dynamics 365 | Robust solutions that integrate seamlessly with other Microsoft services, especially the ERP and CRM. Licensing options vary based on the specific applications and functionalities required. |
How Microsoft 365 Licensing Benefits SMEs:
Pricing and Cost Effectiveness: Microsoft 365 Licensing is tailored to meet the spending constraints of SMEs. You can choose from a range of subscription plans that suit your specific needs. This ensures you get the best value for your investment, allowing you to access top-tier business tools at an affordable price. It is cost-effective as SMBs can better manage IT budgets with a subscription-based model. It also eliminates the need for a significant initial investment in the software.
Enhanced Productivity: With cloud-based services and seamless collaboration tools, resources can work more efficiently, whether at the office or from a remote location. The ability to collaborate in real-time on documents using apps like Word and Excel can significantly boost your team’s efficiency.
Scalability: Microsoft 365 Licensing allows you to scale your subscription up or down, ensuring that you only pay for what you need. This adaptability is particularly useful for growing businesses. Microsoft 365 presents a range of licenses, each designed to meet the unique needs of SMB, such as:
Business Basic: SMEs needing basic online services and cloud storage.
Business Standard: Comprehensive suite of Office apps and services.
Business Premium: Advanced security and device management.
Data Security: Data security is a top priority for SMBs. Microsoft 365 Licensing includes robust security features, such as threat protection and data loss prevention. With these tools in place, you can protect sensitive business information and maintain the trust of your clients.
Simplified Management: Microsoft 365 Licensing simplifies the management of your business tools. Updates and patches are automatically applied, reducing the burden on your IT team and ensuring your software is always up to date.
Reliable Support: Microsoft offers excellent customer support, with resources and assistance readily available to help you troubleshoot any issues that may arise.
How Do You Choose a Suitable Microsoft 365 License?
Selecting the most suitable licensing model requires evaluating factors such as business size, budget, and specific operational requirements. Further:
- A rapidly growing small or medium-sized business may benefit from subscription models that help scale up as needed.
- Perpetual licenses may seem cost-effective initially, but subscription models often provide better long-term value considering ongoing support and regular updates.
- Identifying specific software needs can impact the choice of license. For instance, collaboration tools or accounting solutions can increase costs. Customising the Microsoft license as per these requirements will ensure optimal functionality.
Why Should You Consider Kloudify?
Microsoft’s licensing portfolio may seem overwhelming at first, but once stakeholders match requirements to the plan, the choice can be easily sorted out. Start with the best approach, which is to align the license to the user’s function. This ensures that there is no overpaying for power users or leaving users under-equipped. Microsoft 365/Office 365 plans integrate within the same tenant, and hence, collaboration is not hampered by different license types.
Kloudify is a trusted Microsoft Solutions Partner based in Australia with deep expertise in Microsoft 365, Azure, and security solutions. Kloudify simplifies the complexity of licensing by offering tailored consulting that aligns with business goals and compliance needs of Australian SMBs. Whether you’re looking to optimise costs, migrate to the cloud, or strengthen your cybersecurity posture, talk to team Kloudify right away!
