Microsoft’s latest Microsoft 365 updates introduce a range of new capabilities across security, device management, AI, and productivity services.

For many organizations, this sounds like good news.

Additional functionality is being added to existing subscriptions, creating opportunities to improve security, enhance device management, strengthen governance, and increase operational efficiency.

However, there are two important questions organizations should be asking:

• How much is this going to cost?
• Are we already paying for some of these capabilities elsewhere?

More Capability Does Not Always Mean More Value

As Microsoft continues to expand the functionality included within Microsoft 365, organizations may find that capabilities previously purchased through separate products are now becoming available within their existing licensing estate.

Recent updates include enhancements and expanded access to technologies such as:

• Microsoft Intune capabilities including Remote Help, Advanced Analytics, and Intune Plan 2
• Microsoft Defender security enhancements
• Microsoft Copilot Chat
• Microsoft Security Copilot capabilities for eligible Microsoft 365 E5 customers
• Additional security, identity, governance, and management functionality across the Microsoft ecosystem

The question is not whether these technologies provide value.

The question is whether organizations fully understand how those capabilities compare to the tools they already own.

 The Hidden Challenge of Overlapping Technology

Many organizations have built their technology estates over a period of years.

• New products have been introduced to solve specific challenges.
• Additional suppliers have been engaged.
• Departments have adopted specialist tools.
• Contracts have been renewed.
• Services have expanded.

Over time, this can create an environment where multiple products deliver similar outcomes.

• A device management platform may already exist outside Microsoft.
• Security monitoring may be delivered through another provider.
• Privileged access controls, identity management, analytics, endpoint management, and governance tools may all be supplied through separate agreements.

As Microsoft continues to enhance its own capabilities, overlap becomes increasingly common.

Do You Know What You Already Own?

One of the biggest challenges organizations face is not understanding what Microsoft is adding.

It is understanding what they already have.

When new capabilities are introduced into existing licensing bundles, organizations need to understand:

• Which users are entitled to those capabilities
• Which capabilities are actively being used
• Whether equivalent tools already exist elsewhere
• Which contracts remain active
• Whether existing contracts can be renegotiated or adjusted
• When renewal decisions need to be made
• Whether multiple products are delivering similar outcomes

Without this visibility, organizations can find themselves paying for the same capability multiple times through different suppliers and agreements.

Application Rationalization Is Becoming More Important

As software estates become more complex, many organizations are placing greater focus on application rationalization.

Application rationalization is the process of identifying overlapping technologies, removing unnecessary duplication, and ensuring that software investments continue to align with business requirements.

The objective is not simply to reduce costs.

It is to improve visibility, simplify management, reduce complexity, and ensure that technology decisions are based on accurate information.

As Microsoft continues to expand the functionality included within its licensing portfolio, application rationalization is likely to become an increasingly important consideration for IT, procurement, SAM, and commercial teams.

The Bigger Question

The conversation should not begin with Microsoft’s latest pricing changes.

Nor should it begin with Microsoft’s latest capabilities.

It should begin with understanding your current position.

Organizations that understand their entitlements, utilization, contractual commitments, and existing technology landscape will be better placed to determine whether Microsoft’s new capabilities represent additional value, unnecessary duplication, or an opportunity to simplify their software estate.

Because before you decide what new technology you need, it is worth understanding what you already have.

Want to know what you’re already paying for?

If Microsoft’s latest licensing updates have you wondering whether you’re getting full value from your existing estate, our Microsoft Effective License Position (ELP) in a Box service provides a fast, fixed-price assessment.

You’ll receive a clear picture of your Microsoft entitlements, licensing position, and potential areas of overlap, helping you identify duplication, uncover optimization opportunities, and make future licensing decisions with confidence.

Learn more about Microsoft ELP in a Box and see what’s included →

Lucy Baker, Senior Microsoft Consultant

Lucy Baker is a Senior Microsoft Licensing and IT Asset Management Consultant with extensive expertise in license risk remediation, optimisation, and audit defence. Known for delivering tailored, customer-focused solutions, Lucy specialises in Microsoft 365 optimisation, contract negotiation, and ITAM strategy, helping organisations navigate complex licensing environments with innovative thinking and precision.