Answer
How do I reduce Microsoft 365 costs?
Short answer
Downgrade F3/F1 candidates from E3, reclaim licenses from inactive users, and swap standalone Teams Phone seats for shared calling plans where possible.
Details
M365 waste concentrates in three places: E3 seats assigned to frontline workers who only need F1/F3, Teams Phone licenses on users who never dial out, and Project/Visio seats orphaned from old rollouts.
A typical 500-seat E3 tenant recovers $30–60k/year from license right-sizing alone, before any inactive-user reclaims.
Automate this with SeatMap.AI
The audit path above works. It also takes hours per month per tool. SeatMap.AI runs it on a schedule, stages the reclaim actions for review, and shows you the annualized savings in real dollars.