{"id":20583,"date":"2025-07-31T09:01:17","date_gmt":"2025-07-31T07:01:17","guid":{"rendered":"https:\/\/dynamicgroup.net\/?p=20583"},"modified":"2025-11-17T10:41:41","modified_gmt":"2025-11-17T09:41:41","slug":"understanding-microsoft-entra-id-p1-p2-licenses","status":"publish","type":"post","link":"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/","title":{"rendered":"Understanding Microsoft Entra ID P1 and P2 licenses"},"content":{"rendered":"<p>Updated: August 2025 &#8211; Companies that use Microsoft Entra ID productively will sooner or later face the decision of whether they need the P1 or P2 license level. Both models significantly expand the basic functions and enable secure, scalable, and centrally controllable management of user identities. Many organizations prefer P1 because this license already offers a wide range of functions. With P2, Microsoft addresses additional requirements relating to access security, risk detection, and comprehensive governance.<\/p>\n<p>This article details and categorizes the <strong>functional differences between P1 and P2<\/strong>.\u00a0We also explain what other components are included in the <strong>Microsoft Entra Suite<\/strong>. We also introduce our cloud service <a href=\"https:\/\/www.dynamicgroup.net\/en\/dynamicsync\/\"><strong>DynamicSync<\/strong><\/a>, which enables advanced and cost-effective dynamic group synchronization &#8211; features not found in the standard Microsoft solution.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-21165 size-full\" title=\"Synchronize groups now with DynamicSync\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Synchronize-groups-now-with-DynamicSync-1.gif\" alt=\"Synchronize groups now with DynamicSync\" width=\"1100\" height=\"620\" \/><\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.dynamicgroup.net\/en\/contact-feedback\/\" target=\"_blank\" rel=\"noopener noreferrer\"><button class=\"ButtonBeratung2 aligncenter\">Get in touch with us<\/button><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#From-basic-to-premium-Getting-started-with-Entra-ID-P1-and-P2\" >From basic to premium: Getting started with Entra ID P1 and P2<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Basic-features-in-Microsoft-365-What-you-can-do-without-an-additional-license\" >Basic features in Microsoft 365: What you can do without an additional license<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Why-upgrading-to-P1-or-P2-may-be-necessary\" >Why upgrading to P1 or P2 may be necessary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Licensing-model-administration-and-costs-at-a-glance\" >Licensing model, administration, and costs at a glance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Features-common-to-P1-and-P2\" >Features common to P1 and P2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Governance-and-automation-features-only-in-P2\" >Governance and automation features only in P2<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Real-time-identity-protection-and-privileged-access-management\" >Real-time identity protection and privileged access management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Advanced-reporting-automated-permission-management-and-compliance\" >Advanced reporting, automated permission management, and compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Integration-of-Microsoft-Entra-Verified-ID-for-secure-identity-verification\" >Integration of Microsoft Entra Verified ID for secure identity verification<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Comparison-for-quick-reference\" >Comparison for quick reference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Microsoft-Entra-Suite-Extending-identity-security-beyond-P1-and-P2\" >Microsoft Entra Suite: Extending identity security beyond P1 and P2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#DynamicSync-%E2%80%93-Advanced-dynamic-group-synchronization-for-Microsoft-Entra-ID\" >DynamicSync &#8211; Advanced dynamic group synchronization for Microsoft Entra ID<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.dynamicgroup.net\/en\/news\/understanding-microsoft-entra-id-p1-p2-licenses\/#Dynamic-groups-in-Entra-ID-%E2%80%93-Find-out-more\" >Dynamic groups in Entra ID \u2013 Find out more<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"From-basic-to-premium-Getting-started-with-Entra-ID-P1-and-P2\"><\/span>From basic to premium: Getting started with Entra ID P1 and P2<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Basic-features-in-Microsoft-365-What-you-can-do-without-an-additional-license\"><\/span>Basic features in Microsoft 365: What you can do without an additional license<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In addition to the P1 and P2 license levels, Microsoft offers a <strong>free version of Entra ID<\/strong>. This is included in Microsoft 365 or Office 365 subscriptions and forms the basis for user and group management within these services.<\/p>\n<p><img decoding=\"async\" class=\"imgshadow alignnone wp-image-21168 size-full\" title=\"Entra ID P1 and P2 licenses and basic features\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-and-basic-features-1024x623-1.png\" alt=\"Entra ID P1 and P2 licenses and basic features\" width=\"1024\" height=\"623\" srcset=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-and-basic-features-1024x623-1.png 1024w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-and-basic-features-1024x623-1-300x183.png 300w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-and-basic-features-1024x623-1-768x467.png 768w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-and-basic-features-1024x623-1-800x487.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>Technically speaking, this is a stripped-down version that is licensed through existing Microsoft subscriptions. Premium features are not included. <strong>The functionality is sufficient to create user accounts, connect to applications, and enforce basic security policies.<\/strong><\/p>\n<p>Those who require additional features can upgrade at any time. Microsoft offers a 30-day trial of the premium features for up to 100 users.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why-upgrading-to-P1-or-P2-may-be-necessary\"><\/span>Why upgrading to P1 or P2 may be necessary<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Multi-factor authentication is only possible via predefined security settings, known as security defaults. These activate MFA across the board for all users, block outdated protocols such as IMAP or POP3, and require MFA for administrative access. Differentiated control of these settings is not possible in the Entra ID Free version.<\/p>\n<p>Customizations such as device-dependent conditions, segmented user groups, or app-specific requirements are only available in P1 or P2. The integrated reports are also severely limited in the free version, both in terms of scope and retention period.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Licensing-model-administration-and-costs-at-a-glance\"><\/span>Licensing model, administration, and costs at a glance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>All license levels are managed centrally via the Entra Admin Center. There, you can activate trial licenses, control user permissions, and flexibly switch license types. If a company chooses P1 or P2, licensing is for a full year. Many companies start with Entra ID P1 for all users and then expand to P2 for privileged accounts, administrators, or roles that require special protection.<\/p>\n<p>There are significant price differences between the models. The free version does not incur any additional costs as it is included in the Microsoft 365 subscription. Entra ID P1 costs around \u20ac5.60 per user per month. For P2, you should budget around \u20ac8.40. Both premium versions include a guaranteed service availability of 99.9 percent. (As of July 2025, see also <a href=\"https:\/\/www.microsoft.com\/de-de\/security\/business\/microsoft-entra-pricing?market=de\" target=\"_blank\" rel=\"noopener\">Microsoft&#8217;s official price list<\/a>)<\/p>\n<p>\ud83d\udc49 The P2 feature set includes all P1 features; dual licensing is not required.<\/p>\n<p>Whether the additional cost for P2 is justified depends largely on the security and governance requirements of the organization. P2 offers advanced protection mechanisms, detailed reports, and complete control over privileged access. Organizations with increased security needs, audit requirements, or hybrid infrastructures should specifically plan for the advanced features of P2. The gain in control and transparency can deliver measurable value in security-critical areas.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Features-common-to-P1-and-P2\"><\/span>Features common to P1 and P2<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Entra ID P1<\/strong> builds on the free version and adds key features such as <strong>conditional access, dynamic group management, advanced reporting <\/strong>and <strong>self-service password reset <\/strong>for cloud and hybrid identities.<\/p>\n<p>\ud83d\udc49 Many companies start with P1 as their standard configuration and expand to P2 as their protection needs grow.<\/p>\n<p><strong>Both license models<\/strong> offer:<\/p>\n<p>\ud83d\udd10 <strong>Access control and authentication<\/strong><\/p>\n<ul>\n<li>Full access to conditional access with context-based rules (e.g., location, device status, or app sensitivity).<\/li>\n<li>Control session lifetime through token policies and re-authentication requirements<\/li>\n<li>Centrally managed access restrictions for SharePoint<\/li>\n<li>Protection for global passwords, including user-defined block lists and management of synchronized passwords from local Active Directories<\/li>\n<\/ul>\n<div id=\"attachment_21152\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-21152\" class=\"imgshadow wp-image-21152 size-full\" title=\"Conditional access with Microsoft Entra ID P1 license\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-und-Conditional-Access-1024x545-1.png\" alt=\"Conditional access with Microsoft Entra ID P1 license\" width=\"1024\" height=\"545\" srcset=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-und-Conditional-Access-1024x545-1.png 1024w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-und-Conditional-Access-1024x545-1-300x160.png 300w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-und-Conditional-Access-1024x545-1-768x409.png 768w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/P1-P2-und-Conditional-Access-1024x545-1-800x426.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-21152\" class=\"wp-caption-text\">Conditional access is generally available with a Microsoft Entra ID P1 license, but only in its basic scope, e.g., for access to cloud applications, MFA conditions, device status, location, etc.<\/p><\/div>\n<p>\ud83d\udc65 <strong>User and group management<\/strong><\/p>\n<ul>\n<li>Dynamic groups with rules for group membership, naming guidelines, and classifications<\/li>\n<li>Role-based access control (RBAC) enables the assignment of granular permissions based on defined responsibilities<\/li>\n<li>Functions for self-service password reset, account unlocking, and phone number management by defined employee roles<\/li>\n<li>Support for cross-client scenarios, including synchronization and multi-client capability<\/li>\n<\/ul>\n<p>\ud83d\udcca <strong>Reports, monitoring and transparency<\/strong>\u00a0<\/p>\n<ul>\n<li>Advanced reports on logins, policy violations, and security status (with 30 days of data retention)<\/li>\n<li>Integrity alerts and access analytics<\/li>\n<li>Central access to all apps via the \u201cMy Apps\u201d portal, including user application collections<\/li>\n<\/ul>\n<p><a href=\"#DynamicSync\"><button class=\"ButtonBeratung aligncenter\">How to manage group memberships without P1 <\/button><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Governance-and-automation-features-only-in-P2\"><\/span>Governance and automation features only in P2<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Real-time-identity-protection-and-privileged-access-management\"><\/span>Real-time identity protection and privileged access management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The <strong>Microsoft Entra ID P2 license<\/strong> includes all features from Free and P1 and extends them, particularly in the areas of security automation, privileged access control, and identity governance:<\/p>\n<p><strong>Entra ID Protection<\/strong> dynamically evaluates sign-ins in real time. Suspicious activities, such as \u201cimpossible travel\u201d \u2014 for example, signing in in London followed by another sign-in in New York just a few minutes later \u2014 are automatically classified as risky. Other risk criteria include:<\/p>\n<ul>\n<li>Logins from unknown countries<\/li>\n<li>Use of compromised passwords (dark web leaks)<\/li>\n<li>Deviating user behavior<\/li>\n<\/ul>\n<p>In such cases, Microsoft may automatically take measures such as:<\/p>\n<ul>\n<li>Enforcing multi-factor authentication (MFA)<\/li>\n<li>Blocking access<\/li>\n<li>Initiating a password reset<\/li>\n<\/ul>\n<div id=\"attachment_21154\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-21154\" class=\"wp-image-21154 size-full\" title=\"Microsoft Entra Identity Protection\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Microsoft-Entra-Identity-Protection-1024x879-1.png\" alt=\"Microsoft Entra Identity Protection\" width=\"1024\" height=\"879\" srcset=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Microsoft-Entra-Identity-Protection-1024x879-1.png 1024w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Microsoft-Entra-Identity-Protection-1024x879-1-300x258.png 300w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Microsoft-Entra-Identity-Protection-1024x879-1-768x659.png 768w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Microsoft-Entra-Identity-Protection-1024x879-1-800x687.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-21154\" class=\"wp-caption-text\">Microsoft Entra ID P2 includes advanced security and governance features. Key features include Microsoft Entra ID Protection (Identity Protection).<\/p><\/div>\n<p>Another key element in P2 is <strong>Privileged Identity Management (PIM)<\/strong>. Instead of permanent administrative permissions, users are granted temporary extended rights \u2013 subject to prior approval and only for a defined period of time. These rights must be activated, justified, and logged. The entire process can be documented in an audit-proof manner. This significantly reduces the attack surface, especially for external service providers or project-related roles.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Advanced-reporting-automated-permission-management-and-compliance\"><\/span>Advanced reporting, automated permission management, and compliance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>P2 also offers <strong>advanced security reporting and protection features:<\/strong><\/p>\n<ul>\n<li>Comprehensive security reports with more metrics for risk assessment<\/li>\n<li>More detailed recommendations for threat mitigation<\/li>\n<li>Token protection and protection against session hijacking<\/li>\n<li>Adaptive session control<\/li>\n<\/ul>\n<p>These features are only available in P2.<\/p>\n<p>P2 also expands the range of functions to include<strong> automated authorization management<\/strong> and traceability of access chains. Automated user provisioning is possible for both SaaS applications and local systems. Group provisioning for applications can be defined via central policies. HR systems such as SAP SuccessFactors or Workday can be integrated to control the entire identity lifecycle. Terms of use can be stored, assigned, and verified in a standardized format.<\/p>\n<p>P2 contains complete <strong>access certification<\/strong>. Standardized testing procedures are supplemented by machine learning-based recommendations. This allows orphaned or unused permissions to be identified and revoked at an early stage. Standard permission management is also included in full. Extensions via Microsoft Azure Logic Apps enable customized processes for role assignment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Integration-of-Microsoft-Entra-Verified-ID-for-secure-identity-verification\"><\/span>Integration of Microsoft Entra Verified ID for secure identity verification<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>P2 also includes the ability to create verifiable identity credentials with <strong>Verified ID<\/strong>. Features include:<\/p>\n<ul>\n<li>Issuance of verifiable credentials<\/li>\n<li>Validation via highly secure biometric facial recognition<\/li>\n<li>Up to eight checks per month per license<\/li>\n<\/ul>\n<p>These functions are particularly relevant in security-critical areas such as government, healthcare, and finance.<\/p>\n<div id=\"attachment_21170\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-21170\" class=\"imgshadow wp-image-21170 size-full\" title=\"P2 license includes Microsoft Entra Verified ID\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/entra-verified-id-en-01-1024x889-2.png\" alt=\"P2 license includes Microsoft Entra Verified ID\" width=\"1024\" height=\"889\" srcset=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/entra-verified-id-en-01-1024x889-2.png 1024w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/entra-verified-id-en-01-1024x889-2-300x260.png 300w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/entra-verified-id-en-01-1024x889-2-768x667.png 768w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/entra-verified-id-en-01-1024x889-2-800x695.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-21170\" class=\"wp-caption-text\">Integration with Microsoft Entra Verified ID allows access rights to be validated using verifiable proof of identity.<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Comparison-for-quick-reference\"><\/span>Comparison for quick reference<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This table provides a clear overview of the license levels and helps you classify the features:<\/p>\n<table style=\"border-collapse: collapse; width: 100%; height: 592px;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top;\"><strong>Function\/Feature<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px;\"><strong>Entra ID Free<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px;\"><strong>Microsoft Entra ID P1<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px;\"><strong>Microsoft Entra ID P2<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 80px;\">\n<td style=\"width: 33.3333%; height: 80px;\"><strong>Target group<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 80px;\">\n<p>Basic users, M365 customers<\/p>\n<\/td>\n<td style=\"width: 22.2222%; height: 80px;\">\n<p>Companies with hybrid environments<\/p>\n<\/td>\n<td style=\"width: 22.2222%; height: 80px;\">Organizations with high security &amp; governance requirements<\/td>\n<\/tr>\n<tr style=\"height: 56px;\">\n<td style=\"width: 33.3333%; height: 56px;\"><strong>License costs (approx. per user\/month, as of 2025)<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 56px;\">\n<p>Inclusive in M365<\/p>\n<\/td>\n<td style=\"width: 22.2222%; height: 56px;\">approx. 5.60 EUR\/user\/month<\/td>\n<td style=\"width: 22.2222%; height: 56px;\">approx. 8.40\u202fEUR\/user\/month<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top; text-align: left;\" scope=\"row\"><strong>User and group management<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top; text-align: left;\" scope=\"row\">User and group management in the cloud<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top; text-align: left;\" scope=\"row\">Includes all free features<br \/>\n+ Dynamic group memberships<br \/>\n+ Advanced group management<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top; text-align: left;\" scope=\"row\">Includes all P1 features<\/td>\n<\/tr>\n<tr style=\"height: 48px;\">\n<td style=\"width: 33.3333%; vertical-align: top; height: 48px;\"><strong>Directory synchronization<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Local directory synchronization (e.g., Microsoft Entra Connect)<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Includes all free features<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Includes all P1 features<\/td>\n<\/tr>\n<tr style=\"height: 48px;\">\n<td style=\"width: 33.3333%; vertical-align: top; height: 48px;\"><strong>Single sign-On (SSO)<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Single sign-on (SSO) for Entra, Microsoft 365, and many SaaS apps<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Includes all free features<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Includes all P1 features<\/td>\n<\/tr>\n<tr style=\"height: 48px;\">\n<td style=\"width: 33.3333%; vertical-align: top; height: 48px;\"><strong>Self-service password reset<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Available for cloud users<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Extension with write-back function for local users<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 48px;\">Includes all P1 features<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; vertical-align: top; height: 24px;\"><strong>Multi-factor authentication (MFA)<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 24px;\">MFA supported for global administrators (e.g., Microsoft Authenticator app);<br \/>\nOnly Authenticator as second factor (no SMS or calls)<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 24px;\">Extended MFA, e.g. telephone calls and SMS as a second factor<\/td>\n<td style=\"width: 22.2222%; vertical-align: top; height: 24px;\">Includes all P1 features<br \/>\n+ Automated, risk-based MFA<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top;\"><strong>Conditional access<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">Creation and use of CA policies (without risk identification)<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">Risk-based conditional access including dynamic risk assessment<\/td>\n<\/tr>\n<tr style=\"height: 96px;\">\n<td style=\"width: 33.3333%; height: 96px; vertical-align: top;\"><strong>Identity Protection (Risk assessment)<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 96px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 96px; vertical-align: top;\">Very limited risk alerts without details and automated response<\/td>\n<td style=\"width: 22.2222%; height: 96px; vertical-align: top;\">Complete Entra ID Protection with real-time risk assessment, risk alerts, automatic responses (MFA, access lock, password reset)<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top;\"><strong>Privileged Identity Management (PIM)<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">Full PIM functionality: temporary, approved role assignment, auditing, and logging<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%; vertical-align: top;\"><strong>Security reports &amp; monitoring<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Simple reports on user and login activity<\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Basic reports<\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Advanced security reports with in-depth risk analysis and recommendations<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%; vertical-align: top;\"><strong>Automation &amp; provisioning<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Restricted user and group provisioning<\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Automated user provisioning including HR system integration, workflow extensions<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top;\"><strong>Session protection &amp; token protection<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">Protection against session hijacking, token protection, adaptive session control<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top;\"><strong>Verified ID (Facial verification)<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">Issuance and validation of verifiable identity credentials including biometric facial recognition<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px; vertical-align: top;\"><strong>Zero trust network capabilities (Entra Private Access)<\/strong><\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">\u274c<\/td>\n<td style=\"width: 22.2222%; height: 24px; vertical-align: top;\">Complete zero trust architecture for private apps and networks with conditional access<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%; vertical-align: top;\"><strong>Expandability &amp; integration<\/strong><strong><br \/>\n<\/strong><\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Basic features<\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Extended<\/td>\n<td style=\"width: 22.2222%; vertical-align: top;\">Extendable with Azure Logic Apps, integration with third-party tools<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Microsoft-Entra-Suite-Extending-identity-security-beyond-P1-and-P2\"><\/span>Microsoft Entra Suite: Extending identity security beyond P1 and P2<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Microsoft Entra Suite<\/strong> is a higher-level product family that bundles various security and access management solutions for cloud and on-premises environments. It goes well beyond the individual P1 and P2 license levels and integrates key Microsoft Entra products into a unified platform.<\/p>\n<p>A Microsoft Entra ID P1 license is required to use Entra Suite. However, many components are also included in P2 or are extended by the suite. The individual components can be licensed separately, but offer pricing advantages and coordinated integration when purchased as a package.<\/p>\n<p><strong>Entra Suite as a complete package:<\/strong> It bundles (<a href=\"https:\/\/learn.microsoft.com\/en-us\/entra\/fundamentals\/licensing\" target=\"_blank\" rel=\"noopener\">licensing from Microsoft<\/a>, as of mid-2025) five major functional areas:<\/p>\n<ul>\n<li><strong>Entra Private Access<\/strong> (zero trust network access, e.g. as a VPN replacement)<\/li>\n<li><strong>Entra Internet Access<\/strong> (protected access to Internet services\/SaaS)<\/li>\n<li><strong>Entra ID Governance<\/strong> (role &amp; authorization management, identity lifecycle, access recertification)<\/li>\n<li><strong>Entra ID Protection<\/strong> (risk-based access control, real-time monitoring)<\/li>\n<li><strong>Entra Verified ID Premium<\/strong> (verifiable identity credentials, including Face Check)<\/li>\n<\/ul>\n<div id=\"attachment_21172\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-21172\" class=\"wp-image-21172 size-full\" title=\"Microsoft Entra Suite\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/global-secure-access-01-en-1024x844-2.png\" alt=\"Microsoft Entra Suite\" width=\"1024\" height=\"844\" srcset=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/global-secure-access-01-en-1024x844-2.png 1024w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/global-secure-access-01-en-1024x844-2-300x247.png 300w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/global-secure-access-01-en-1024x844-2-768x633.png 768w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/global-secure-access-01-en-1024x844-2-800x659.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-21172\" class=\"wp-caption-text\">Global Secure Access in the Microsoft Entra Suite combines the Microsoft Entra Internet Access and Microsoft Entra Private Access components in a single dashboard in the Microsoft Entra Admin Center.<\/p><\/div>\n<p>A central element is <strong>Entra Private Access<\/strong>. This service replaces traditional VPN solutions with a zero-trust network architecture. Access to internal applications is identity-based via the global Secure Access Client, without a direct network connection between the client and the application. At the same time, <strong>Entra Internet Access<\/strong> offers cloud-based web access control with content filtering. Policies can secure all internet traffic without routing it through central firewalls or local networks.<\/p>\n<p>Microsoft designed the Entra Suite for organizations that already use Entra ID and require additional network security, identity validation, or cross-cloud access control.<\/p>\n<h2 id=\"DynamicSync\"><span class=\"ez-toc-section\" id=\"DynamicSync-%E2%80%93-Advanced-dynamic-group-synchronization-for-Microsoft-Entra-ID\"><\/span>DynamicSync &#8211; Advanced dynamic group synchronization for Microsoft Entra ID<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.dynamicgroup.net\/en\/dynamicsync\/\"><strong>DynamicSync<\/strong><\/a> is an independent cloud service from FirstAttribute that technically extends the native group management capabilities of Microsoft Entra ID.<\/p>\n<p><strong>\ud83d\udc49 Especially powerful:<\/strong> DynamicSync can <strong>synchronize different group types in Entra ID<\/strong> \u2013 for example, <strong>distribution groups in M365 groups<\/strong> or <strong>M365 groups in security groups<\/strong>. This keeps memberships automatically up to date and allows them to be flexibly adapted to different use cases.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-21175 size-full\" title=\"DynamicSync Dashboard\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/DynamicSync-cloud-application-1024x625-1.png\" alt=\"DynamicSync Dashboard\" width=\"1024\" height=\"625\" srcset=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/DynamicSync-cloud-application-1024x625-1.png 1024w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/DynamicSync-cloud-application-1024x625-1-300x183.png 300w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/DynamicSync-cloud-application-1024x625-1-768x469.png 768w, https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/07\/DynamicSync-cloud-application-1024x625-1-800x488.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>While Microsoft&#8217;s dynamic groups offer limited capabilities (depending on the license level), DynamicSync enables <strong>advanced, nested filter queries<\/strong> of up to 50 filters.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-21179 size-full\" title=\"How group synchronization works in DynamicSync\" src=\"https:\/\/dynamicgroup.net\/wp-content\/uploads\/2025\/07\/Synchronize-groups-in-Entra-ID-without-P1.gif\" alt=\"How group synchronization works in DynamicSync\" width=\"1340\" height=\"876\" \/><\/p>\n<p>DynamicSync processes synchronized Active Directory groups in the cloud and transfers their members to M365 groups. This feature is particularly useful for hybrid environments with extensive on-premises management. Administrators retain their familiar centralized control, while DynamicSync reliably keeps cloud memberships up to date.<\/p>\n<p>\ud83d\udca1Since DynamicSync works independently of Microsoft&#8217;s Entra ID P1 or P2 licenses, it offers a <strong>cost-effective alternative<\/strong> <strong>or supplement<\/strong> to Microsoft&#8217;s limited native features \u2014 especially for complex and nested group structures or when P2 license options are not available. The solution also automatically integrates Microsoft Teams and other M365 group management scenarios.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Entra ID Free covers basic identity management functions, is included in most Microsoft cloud subscriptions, and provides essential basic protection and SSO.<\/p>\n<p>The Microsoft Entra ID P1 license is suitable for organizations that need dynamic access control and basic security features in a hybrid environment. P2 addresses complex scenarios with high regulatory requirements, external auditor expectations, and extensive requirements for traceability, automation, and least privilege principles. You can mix licenses, equipping privileged users with P2 while securing standard users with P1.<\/p>\n<p>DynamicSync provides companies with maximum flexibility and automation in dynamic group management, significantly exceeding Microsoft&#8217;s native limitations and enabling the synchronization of different group types in Microsoft Entra ID. This allows complex authorization and communication structures to be mapped efficiently and securely \u2013 with reduced administrative effort and optimized costs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dynamic-groups-in-Entra-ID-%E2%80%93-Find-out-more\"><\/span>Dynamic groups in Entra ID \u2013 Find out more<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignleft wp-image-19510\" title=\"DynamicSync logo\" src=\"https:\/\/www.dynamicgroup.net\/wp-content\/uploads\/2025\/06\/DynamicSync-Logo-500x300-1.png\" alt=\"DynamicSync logo\" width=\"200\" height=\"120\" \/>DynamicSync is an automation solution for cloud groups from FirstAttribute AG. As a pure cloud service (SaaS), DynamicSync specializes in dynamic and automatic group synchronization in <br \/>\nEntra ID.<\/p>\n<p>In addition to the <a href=\"https:\/\/www.dynamicgroup.net\/en\/dynamicsync-book-a-demo\/\" target=\"\u201c_blank\u201d\" rel=\"\u201cnoopener\u201d\">free online demo<\/a>, our friendly staff are also available to answer your questions by phone. Call us on <a href=\"\u201ctel:+4981969984330\u201d\">+49 81 969 984 330<\/a>.<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.dynamicgroup.net\/en\/contact-feedback\/\" target=\"_blank\" rel=\"noopener noreferrer\"><button class=\"ButtonBeratung aligncenter\">Contact us<\/button><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Updated: August 2025 &#8211; Companies that use Microsoft Entra ID productively will sooner or later face the decision of whether [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1446],"tags":[],"class_list":["post-20583","post","type-post","status-publish","format-standard","hentry","category-dynamicsync-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding Microsoft Entra ID P1 and P2 licenses - FirstWare DynamicGroup<\/title>\n<meta name=\"description\" content=\"What exactly is behind the Microsoft Entra P1 and P2 licenses: what are they for, and can you do without them? 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