Microsoft Entra ID: Why You Need P1 or P2 Instead of a Free License

In today’s digital-first workplace, managing user identities and securing organizational data has become more critical than ever. While the Free Microsoft Entra ID (formerly Azure Active Directory) license offers a solid foundation for identity and access management, it falls short in delivering the advanced security, governance, and control that modern businesses require. That’s where the P1 and P2 licenses come into play.

But when should you move beyond the Free plan? What specific challenges do P1 and P2 solve for your organization? Let’s dive into the details to help you make an informed decision.

Why Choose P1 or P2 Over the Free License?

The Free License: Great for Basics

The Free Microsoft Entra ID plan includes basic features like user and group management, single sign-on (SSO) for SaaS apps, and basic security features. However, as your organization scales, you’ll quickly realize the limitations:

• No conditional access policies to restrict access based on device, location, or user risk.
• No advanced security reports to detect and mitigate risks.
• No tools for managing privileged identities or enforcing stricter governance policies.

For startups and very small businesses, the Free license might suffice. However, if your organization handles sensitive data, works in regulated industries, or has complex security needs, upgrading to P1 or P2 is a must.

When Do You Need P1?

Microsoft Entra ID Plan P1 is ideal if:

• You want basic identity and access management for your growing business.
• You need to implement Multi-Factor Authentication (MFA) to secure user logins.
• You’re managing a remote or hybrid workforce and require conditional access policies to protect data from unauthorized devices or risky locations.
• You’re tired of handling password reset requests and want to enable self-service password reset (SSPR) for your users.

Key Features of P1:

1. Conditional Access: Define rules to allow or block access based on user, device, location, or app.
2. MFA: Strengthen security by requiring additional verification for logins.
3. Self-Service Password Reset: Reduce IT overhead by enabling users to reset their own passwords.
4. Dynamic Groups: Automate group memberships based on user attributes.
5. Basic Access Reviews: Periodically review and clean up user access.

Example Use Case: A mid-sized retail business with remote employees wants to secure access to their Microsoft 365 apps. They use P1 to implement MFA and conditional access, ensuring that only company-approved devices can access sensitive data.

When Do You Need P2?

Microsoft Entra ID Plan P2 is designed for organizations with advanced security and governance requirements. Choose P2 if:

• You need to detect and mitigate identity-based risks using AI-powered tools.
• Your organization requires strict compliance with regulations like GDPR or HIPAA.
• You need to manage privileged identities to prevent abuse of admin roles.
• You’re running a large enterprise with complex workflows and need automated access reviews.

Key Features of P2:

1. Identity Protection: Detects compromised accounts and risky sign-ins using machine learning.
2. Privileged Identity Management (PIM): Manages and monitors admin roles with:
3. Advanced Access Reviews: Automate and customize periodic reviews of user access to apps and data.
4. Azure AD Connect Health: Provides detailed insights and alerts for monitoring your directory synchronization and domain controllers.

Example Use Case: A healthcare organization managing sensitive patient data uses P2 to enforce JIT access for administrators and protect against identity theft using risk-based conditional access policies.

Comparison of P1 and P2

Microsoft Entra ID P1

P1 offers essential identity management features, including:

• Multi-Factor Authentication (MFA)
• Conditional Access policies
• Self-Service Password Reset
• Dynamic groups for automated access control
• Basic access reviews to manage permissions

This is a great option for organizations that need improved security without requiring advanced identity governance.

Microsoft Entra ID P2

P2 builds upon P1 with advanced security and identity protection capabilities, including:

• Identity Protection for detecting and mitigating threats using AI
• Privileged Identity Management (PIM) to control admin access
• Advanced automated access reviews
• Risk-based Conditional Access for dynamic security policies
• Azure AD Connect Health for in-depth monitoring of identity infrastructure

If your organization requires heightened security, governance, and regulatory compliance, P2 is the superior choice.

Pricing and Benefits of Buying P1 and P2

Pricing (Per User, Per Month):

• Microsoft Entra ID P1: $6
• Microsoft Entra ID P2: $9

How to Obtain P1 and P2?

You can obtain Microsoft Entra ID P1 or P2 licenses in two ways:

1. As a Standalone Purchase: Buy directly from Microsoft or through a certified reseller.
2. Bundled in Microsoft 365 Plans:

Benefits of Buying These Licenses

• Enhanced Security: Protects users and data with risk-based conditional access and privileged access management.
• Compliance Readiness: Helps meet regulatory requirements with advanced security and governance.
• Reduced IT Workload: Automates user access management and security monitoring, minimizing manual intervention.
• Improved Productivity: Self-service features reduce dependency on IT teams, enabling smoother operations.

Final Thoughts

Choosing between P1 and P2 depends on the size of your organization and its security requirements. If you’re looking for enhanced access management and basic security features, P1 is a cost-effective solution. However, if your organization requires advanced governance, compliance, and identity protection, P2 offers unparalleled value.

Pro Tip: Start by assessing your organization’s needs. Identify gaps in your current security and governance strategy and choose the plan that aligns with your goals.

By investing in the right Microsoft Entra ID plan, you’ll not only enhance security but also improve productivity and ensure compliance in today’s complex digital landscape.

Hashtags: #MicrosoftEntraID #IdentityManagement #CyberSecurity #Microsoft365 #CloudSecurity