Microsoft 365 licensing at law firms is quietly one of the largest recurring line items in IT. Most firms are either overpaying, under-protected, or both — often significantly. Right-sizing is a straightforward exercise, and it usually pays for itself well within a single quarter.
Not every user needs the top SKU
Segmenting users by role — attorneys, staff, admins, contractors, part-time timekeepers — and matching them to the right SKU almost always reveals meaningful savings. Firms that default to a single high-tier license across the board are consistently overpaying.
Security features are already in the box
Many firms pay for third-party tools that duplicate features already included in their existing M365 SKUs. An honest audit uncovers this quickly and often surfaces material recurring savings. This is one of the highest-return exercises in the entire IT budget.
Copilot licensing needs its own strategy
Copilot isn't a universal rollout. Target the roles where it will move the needle first, measure the impact honestly, then expand deliberately. Blanket Copilot licensing at go-live is one of the most common mistakes we see, and it produces disappointing usage metrics that damage the case for later expansion.
Renewals are negotiations, not formalities
With the right data in hand — usage, feature adoption, seat plans, competitive benchmarks — renewal conversations get materially better outcomes. Firms that walk into renewals with no data walk out with the vendor's preferred structure.
The offboarding discipline
Every un-reclaimed license from a departed employee is a monthly expense. Firms with tight offboarding — tied to HR — consistently run a leaner license footprint than firms whose offboarding is manual and delayed.
The compliance and evidence angle
The right SKUs make client audits and cyber-insurance renewals significantly easier. Under-licensing is a false economy when it costs a firm the audit response it should have been able to produce in an hour.
We run Microsoft 365 licensing reviews for firms every quarter. Talk to us, or subscribe below for our next licensing perspective.
James Whitaker
Legal Tech Editor
