Technology is often regarded as the backbone of business transformation and innovation. Yet, despite substantial investments in IT and communications estates, a significant proportion of UK businesses and organisations are failing to optimise their software, platforms, and assets.
This failure is not simply a matter of unused resources; it equates to wasted capital, lost opportunities for efficiency and growth, and increased security risks. This is evident in the widespread underutilisation of Microsoft’s extensive suite of business products, including Teams, CoPilot, MS Business Dynamics, Azure, and even foundational business packages such as Microsoft 365.
The scale of underutilisation: unused licenses and overlooked features
The underoptimisation of IT assets in the UK can be traced to several trends: organisations routinely purchase software licenses and cloud platforms, yet fail to deploy them fully, or even at all. Gartner estimates that organisations typically waste 30% of their software spend on unused or underused licenses.
In the context of the UK, research by Flexera’s 2023 State of ITAM Report found that 38% of UK organisations reported spending on software that is “rarely or never used”. This not only represents an immense financial inefficiency but highlights a deeper issue – a lack of understanding or awareness about what these tools can actually deliver.
When it comes to Microsoft products specifically, the numbers are equally sobering. According to a survey in 2023, over 60% of UK companies admitted that they were not making full use of the advanced features available in Microsoft Teams, instead largely limiting themselves to basic chat and video conferencing.
Similarly, usage data from Microsoft suggests that while 80% of organisations deploy Microsoft 365, fewer than half utilise the security and automation features embedded within the suite. Microsoft’s own adoption statistics indicate that as of 2023, only around 24% of businesses using Dynamics 365 leveraged the platform’s advanced analytics and AI-driven capabilities.
The Root Causes: Complexity, Training and Organisational Silos
At the heart of this underutilisation lie several interconnected causes. The sheer breadth and depth of features offered by products such as Microsoft Teams and Azure can be overwhelming, creating a barrier for both IT administrators and end-users.
Training is often insufficient, focusing on initial deployment rather than ongoing upskilling and exploration of new functionalities. Furthermore, organisational silos can hamper effective collaboration and knowledge sharing, preventing the cross-pollination of best practice that would allow more employees to benefit from the tools at their disposal.
For example, Microsoft Teams is more than just a chat and meeting tool: it provides document management, workflow automation (via Power Automate), advanced collaboration integrations, and a rich ecosystem of third-party apps. Yet, in practice, many users never progress beyond scheduling meetings or sending instant messages.
Similarly, Microsoft CoPilot represents a step change in AI-powered productivity, offering contextual assistance, summarisation, and task automation — but adoption statistics show that its advanced features remain largely untapped outside of tech-savvy early adopters.
The hidden costs: financial waste and lost potential
The most visible cost of underutilised IT estates is financial. Software and platform licenses are often bought in bulk and renewed automatically, with little scrutiny as to what is actually being used.
International Data Corporation’s (IDC) “Worldwide Software Licensing and Pricing 2022” report estimated that organisations globally could be overspending by as much as 25% on software licenses, a figure that closely mirrors the UK’s experience. In a mid-sized organisation, this can equate to tens or even hundreds of thousands of pounds each year.
However, the true cost of underutilisation extends far beyond wasted licenses. Companies are missing out on efficiencies that could streamline operations, automate repetitive tasks, and free up valuable human capital. For instance, advanced Power BI analytics within MS Business Dynamics can surface actionable insights that drive smarter business decisions, while Azure’s security and compliance tools can reduce the risk of data breaches – yet these features are frequently neglected or misunderstood.
Security Risks
Security is a further area of concern. Many Microsoft business packages include advanced security features such as multi-factor authentication, data loss prevention, endpoint management, and threat analytics. Microsoft’s own research has shown that less than 40% of organisations using Microsoft 365 have enabled these security features to their full extent. This exposes companies to avoidable vulnerabilities, as cyber threats become ever more sophisticated.
Operational Efficiency and Time Savings
Automation, workflow integration, and seamless communication tools are meant to save time and resources. For example, Microsoft Teams allows for the creation of automated approval processes, shared workspaces, and real-time document editing. Yet, according to a 2023 YouGov poll, less than a third of UK businesses using Teams had implemented any custom workflows or integrations, relying almost exclusively on out-of-the-box features.
The Opportunity Cost: Growth, Innovation, and Competitive Edge
Perhaps the most significant loss is the opportunity cost – the business growth, innovation, and competitive advantage that could be realised through full optimisation.
According to global research and advisory firm Forrester’s “Total Economic Impact of Microsoft 365 E5 Solutions,” organisations that actively adopt advanced Microsoft features have seen up to 20% improvements in operational efficiency, a 50% reduction in security incidents, and a 15% increase in employee productivity. These benefits are not theoretical; they are being realised by those who commit to strategic adoption and continuous training.
As businesses increasingly compete on the basis of data-driven decision making and customer experience, failing to unlock the full potential of platforms like Dynamics 365, Azure, and CoPilot can leave organisations trailing behind more agile, tech-savvy competitors. AI-powered tools like CoPilot, which can automate research, drafting, and analysis tasks, have the potential to transform workflows; but only if their capabilities are understood and embraced.
Closing the gap: recommendations for UK businesses
To address this persistent underutilisation, UK businesses and organisations need to move beyond seeing software as a static asset or a box to tick. Equity will guide them to adopt a lifecycle approach to IT investment, focusing on several critical actions:
The story of IT and communications estates in the UK is too often one of untapped potential and hidden waste. The statistics are clear: significant proportions of software and platform licenses go unused, even as businesses continue to invest heavily in state-of-the-art solutions. This situation is particularly acute with Microsoft products, where the gulf between capability and actual usage is wide.
The costs are not only monetary, but strategic: lost efficiency, missed opportunities for growth, and increased risk. By taking a more proactive, strategic approach to IT asset management, UK businesses can transform their relationship with technology, turning cost centres into engines of innovation and competitive advantage.