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At ST Digital, we support dozens of companies every year on their Microsoft environments.
And there is one observation I consistently make:
The majority of African companies are paying too much for Microsoft. Not slightly too much. Way too much.
E5 licences for employees who only use Outlook. Active accounts for employees who left 2 years ago. Add-ons billed that no one has ever activated.
And
in 2026, it will get worse: Microsoft is raising its prices again, changing its
licensing rules, and pushing Copilot as a paid add-on.
This article is not a course on Microsoft licensing. It is a field guide, written from francophone Africa, to help you regain control of your Microsoft budget. With figures in FCFA, concrete examples, and an action plan you can execute starting Monday.
Summary
→ Part 1: What is changing in 2026 (and why it concerns you)
→ Part 2: The 5 mistakes that are costing you millions every year
→ Part 3: How to audit your licenses in 5 steps
→ Part 4: Action plan — regaining control in 30 days
→ Bonus: Microsoft optimisation simulator (free)
Part 1 — What is changing in 2026 (and why it concerns you)
Microsoft has announced several major developments for 2026. Here is what directly impacts businesses in francophone Africa:
Price increases — the trend is confirmed
Microsoft 365 pricing increased by an average of 10 to 20% between 2023 and 2025. In 2026, a new wave of price increases is affecting several plans, notably the Business Premium and E3 licenses.
For a company of 200 employees on E3, that represents between 5 and 15 million FCFA in additional costs per year. Without changing anything. Without a single additional user.
Copilot — the feature they will push you to purchase
Microsoft Copilot (the AI assistant integrated into Office) is not included in standard licences. It is an add-on at ~30 USD/user/month.
For 50 users, that represents ~12 million FCFA/year. The question is not "is it good". The question is: "do you really need it today?"
The answer for 80% of the companies we support: not yet. But you will face commercial pressure.
Licensing evolutions — the devil is in the details
Microsoft is simplifying certain plans while making others more complex. As a result, if you do not actively monitor the changes, your reseller will sell you what suits them, not what suits you.
│ What I always tell CIOs: Microsoft is not your enemy. But your ignorance about licensing is your worst enemy.
Part 2 — The 5 mistakes that are costing you millions
After dozens of licensing audits, here are the 5 errors I systematically encounter:
Mistake #1: E5 licenses for everyone
The E5 plan is the most comprehensive — and the most expensive. It includes telephony, advanced compliance, and premium security.
In practice: 70% of your employees only use Outlook, Teams, and Word. They only need an E1 or E3.
Cost of the mistake: an E5 costs approximately 2x more than an E3. On 100 oversized licences, that amounts to ~20M FCFA/year thrown out the window.
Mistake #2: Ghost licenses
Departed employees, completed interns, forgotten test accounts. All billed every month.
In a company of 300 people that we audited in Abidjan, we found 47 active licenses for people who no longer worked there. 47.
Cost of the mistake: ~8M FCFA/year. For accounts nobody uses.
Mistake #3: No negotiation with the reseller
The majority of African companies renew their Microsoft contracts without negotiating. They pay the listed price.
However, negotiation levers do exist: multi-year commitment, volume, plan migration, renewal timing. Your reseller will not proactively offer them to you — it is up to you to activate them.
Mistake #4: No governance of add-ons
Power BI Pro, Visio, Project, Defender for Endpoint, Intune... Each add-on may seem insignificant individually. But cumulated across 200 users, the costs add up.
I have seen companies where add-ons accounted for 40% of the total Microsoft bill. Without the CIO's knowledge.
Mistake #5: No annual review
Microsoft licensing is not a "set and forget" matter. Needs evolve. Prices change. So do offerings.
If you have not reviewed your contract in more than 12 months, you are probably overpaying. It is a mathematical certainty.
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Part 3 — How to audit your licences in 5 steps
You do not need a consultant to conduct an initial assessment. Here is a simple process your CIO can launch as early as this week:
Step 1 : Extract the complete list of active licenses
From the Microsoft 365 Admin portal, export the list of all users with their licence plan. This is a CSV export. 5 minutes.
Step 2 : Cross-reference with your HR list
Compare active users in Microsoft with your actual headcount. Look for discrepancies: orphaned accounts, duplicates, terminated interns. This is often where the first millions in savings are hidden.
Step 3 : Analyse actual usage by profile
The Admin portal provides usage reports: who uses what, and how frequently. A team member who only opens Outlook and Teams does not need an E5 at $36 USD/month.
Classify your users into 3 profiles:
→ Basic profile (Outlook + Teams) → E1 or Business Basic
→ Standard profile (Full Office + OneDrive) → E3 or Business Standard
→ Premium profile (Security + Compliance + Analytics) → E5
Step 4 : List all active add-ons
Take an inventory of every billed add-on. For each one: who uses it? Since when? Is it essential? You will be in for some surprises.
Step 5 : Calculate your actual TCO over 3 years
Add up : base licences + add-ons + internal management costs + hidden costs (training, support, migration). Project over 3 years including announced price increases.
This is THE figure your CEO needs to see. Not the monthly invoice. The total cost of ownership over 3 years.
Part 4 — Action plan: regaining control in 30 days
Here is a realistic plan for a company of 100 to 500 employees:
Week 1 — The assessment
→ Extract the license list (Step 1)
→ Cross-reference with HR headcount (Step 2)
→ Identify ghost licenses → deactivate them immediately
Estimated quick gain: 3 to 10M FCFA/year depending on size.
Week 2 — The usage analysis
→ Pull usage reports
→ Classify users into 3 profiles
→ Identify oversized licenses
Estimated gain: 10 to 25M FCFA/year on right-sizing.
Week 3 — The add-on audit
→ Complete inventory of add-ons
→ Keep/delete decision for each one
→ Negotiation with the reseller if renewal is approaching
Week 4 — The 12-month plan
→ Calculate the actual TCO over 3 years
→ Prepare the renewal strategy
→ Implement a quarterly license review
→ Present results to the CEO (with before/after figures)
In 30 days, without any additional investment, you can reduce your Microsoft bill by 15 to 30%. I have seen it with dozens of clients.
Microsoft is an extraordinary tool. That is not the issue.
The problem is the absence of a strategy to manage it.
In Francophone Africa, we have become accustomed to absorbing the prices set by international publishers. We renew without negotiating. We purchase without auditing. We pay without accounting.
In 2026, with price increases, the arrival of Copilot, and the growing complexity of licensing, this is no longer sustainable.
It is time to regain control.
Not by abandoning Microsoft. By mastering it.
At ST Digital, we support companies in 7 African countries on these matters. Not to sell more licences — but to buy fewer and smarter.
If after reading this article you realise that you do not know exactly how much Microsoft is costing you... this may be a sign that it is time to act.
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👉🏾 DM "SIMULATOR" to receive the Microsoft optimization simulator (free of charge) 👉🏾 DM "AUDIT" if you would like us to review your situation together 💬 Et vous, quand avez-vous revu votre contrat Microsoft pour la dernière fois ? |