Microsoft Entra Licensing Model Overview
Microsoft Entra is the unified identity and access platform that includes Azure Active Directory, Permissions Management, and Verified ID. Its licensing model defines which identity, security, and compliance features you can deploy. The structure is tiered, and each tier unlocks specific capabilities for authentication, authorization, and governance.
Core Licensing Tiers
- Free – Basic identity management, Azure AD integration, single sign-on for a limited number of apps, and essential security alerts.
- Microsoft Entra ID P1 – Advanced identity governance, conditional access policies, MFA configuration flexibility, hybrid identity integration, and dynamic groups.
- Microsoft Entra ID P2 – All P1 features plus Identity Protection with risk-based conditional access, Privileged Identity Management (PIM), and advanced compliance reporting.
- Permissions Management – A separate SKU providing cloud infrastructure entitlement management across Azure, AWS, and Google Cloud.
- Verified ID – Decentralized identity issuance and verification. May be licensed individually or included in higher bundles.
Key Changes and Consolidation
The Microsoft Entra licensing model now unifies Azure Active Directory naming into Microsoft Entra ID, making the lineup clearer. Previously separate products are now grouped under the Entra umbrella, streamlining procurement and management. This impacts billing and feature mapping. For example, features like Conditional Access and Access Reviews that were once split across multiple services are now organized directly under the P1/P2 structure.