Understand Microsoft Entra ID licenses and terminology

Your company always looks for the most experienced healthcare professionals and external contractors with whom to work. Research projects can become costly if they’re not managed properly. Your company wants to improve its cost effectiveness. The company asks you to investigate how Microsoft Entra ID is licensed. They also want you to provide a clear and concise outline of the critical terminology they might come across in Microsoft Entra ID.

In this unit, you explore how Microsoft Entra ID is licensed and which features fall under the different licenses. You see how to add or change licenses in Microsoft Entra ID, and you learn the key terms you need to understand when you use Microsoft Entra ID.

Microsoft Entra ID licenses

You can use different features of Microsoft Entra ID, depending on the type of license you choose:

• Microsoft Entra ID Free: You can manage users and groups, and you get necessary reports, on-premises Active Directory synchronization, and self-service password reset for Microsoft Entra users. You also get single sign-on for Microsoft 365, Azure services, and many non-Microsoft SaaS applications.
• Pay-as-you-go licenses for specific features: You can access specific Microsoft Entra features, like Azure AD B2C, on a pay-as-you-go basis. Azure AD B2C lets you manage identity and access for consumer users and the applications they use.
• Office 365 Apps: You get all the free tier features, but you can also have custom sign-in and sign out pages, self-service password reset for cloud users, and device write-back.
• Microsoft Entra ID P1: You get all the features from the free tier, but you can also let users access on-premises and cloud-based services and resources. You can use self-service group management or dynamic groups, where users are added and removed automatically based on your criteria. This tier supports on-premises identity-management suites like Microsoft Identity Manager. Self-service password reset is also supported for users who are based on-premises.
• Microsoft Entra ID P2: You get all the features of the previous two tiers, along with Microsoft Entra ID Protection. This feature helps you configure risk-based Conditional Access to protect applications from identity risks. You can also use privileged identity management, which lets you monitor and put detailed restrictions on Administrators.
• Microsoft Entra ID Governance: An advanced set of identity governance capabilities available for Microsoft Entra ID P1 and P2 customers. Microsoft Entra ID Governance is available as six products: Microsoft Entra ID Governance, Microsoft Entra ID Governance Step Up for Microsoft Entra ID P2, Entra ID Governance Frontline Worker, Microsoft Entra ID Governance Step up for Microsoft Entra ID F2, Microsoft Entra ID Governance for Government, and Microsoft Entra ID Governance Add-on for Microsoft Entra ID P2 for Government. These six products differ only in their prerequisites. They contain the entitlement management, privileged identity management, and access reviews capabilities that were in Microsoft Entra ID P2, plus additional advanced identity governance capabilities.
• Microsoft Entra Suite: A complete cloud-based solution for workforce access, available for Microsoft Entra ID P1 and P2 customers. Microsoft Entra Suite brings together Microsoft Entra Private Access, Microsoft Entra Internet Access, Microsoft Entra ID Governance, Microsoft Entra ID Protection, and Microsoft Entra Verified ID. The Microsoft Entra ID Governance portion provides the same identity governance capabilities as the Microsoft Entra ID Governance product. The difference is that they have different prerequisites.