How do you optimize your third party SaaS licenses and save on subscriptions? (e.g. Microsoft 365, MS Dynamics 365, etc.)

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CEO & Founder in Software, 11 - 50 employees
The biggest waste happens when licenses are allocated based on blanket approvals and never monitored for usage. One way to mitigate that issue is monitor for usage and disable the license if it hasn’t been used for a specific period of time (say 60 days). Lack of automatic deprovisioning also leads to waste. Make sure there is automation to reclaim the licenses once the employee leaves the company or if roles have changed. Third piece is effective use of automation and leveraging api rather than giving a license. Example is quote approvals or for viewing some reports. Allocating full licenses for limited use cases can lead to higher licensing costs.
Head of Business Technology in Software, 201 - 500 employees
Several ways to address this.  Continuous monitoring of on-boarding and off-boarding through proper controls.  That being said, it not always possible when you have huge number of SaaS application.  That is where new tool such as productiv will give insights into your SaaS spend.
Director SASE Customer & Partner Success in Software, 10,001+ employees
Specifically for O365 licensing, I found a 3rd party SaaS company called CoreView. Their whole business model is centered on license management. I'm in the process of procuring that software to use within our Azure AD environment. The software allows you to see if your users are overlicensed, reclaim unused licenses, etc. There are a lot of intelligent automated workflows that are included in the SaaS offering. I would highly recommend that you check it out if license management is becoming a monster to manage manually.

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CTO in Software, 201 - 500 employees
Without a doubt - Technical Debt! It's a ball and chain that creates an ever increasing drag on any organization, stifles innovation, and prevents transformation.
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