Microsoft Entra ID P1 vs. P2 Licensing: Understanding the Differences and Making the Right Choice

Managing digital identities and access is crucial for any organization. Microsoft Entra ID, formerly known as Azure Active Directory, offers two primary licensing options: P1 and P2. Understanding the differences between these licenses can help your organization make an informed decision that aligns with your security needs and budget.

Pricing Overview

One of the first considerations when choosing between Microsoft Entra ID P1 and P2 is the cost. As of the latest pricing information:

• Microsoft Entra ID P1: $6.00 per user per month.
• Microsoft Entra ID P2: $9.00 per user per month.

While the P2 license is more expensive, it offers additional features that may justify the higher cost for certain organizations.

Feature Comparison

Both P1 and P2 licenses provide essential identity and access management capabilities, but there are key differences in the advanced features they offer.

Microsoft Entra ID P1

The P1 license includes the following features:

• Conditional Access: Allows you to create policies that grant or block access based on conditions such as user location, device state, and application sensitivity.
• Multi-Factor Authentication (MFA): Enhances security by requiring users to provide two or more verification factors to gain access.
• Self-Service Password Reset (SSPR): Enables users to reset their passwords without administrator intervention.
• Application Proxy: Provides secure remote access to on-premises applications.
• Dynamic Groups: Automatically adds and removes users from groups based on attributes such as department or location.

Microsoft Entra ID P2

In addition to all the features included in the P1 license, the P2 license offers:

• Identity Protection: Uses machine learning to detect and respond to suspicious activities and potential vulnerabilities.
• Privileged Identity Management (PIM): Provides just-in-time privileged access and enhanced auditing capabilities for administrators.
• Access Reviews: Allows you to periodically review and recertify user access to ensure compliance and reduce risk.
• Risk-Based Conditional Access: Automatically adjusts access policies based on real-time risk assessments.
• Risky Sign-On Detection: Identifies and responds to potentially compromised sign-in attempts, such as those from unfamiliar locations or devices.
• Risky User Detection: Monitors user behavior for signs of compromised accounts, such as unusual activity patterns or leaked credentials.

Nonpremium and Premium Detections

Microsoft Entra ID Protection provides various risk detections to help organizations identify and mitigate potential security threats. These detections are categorized into nonpremium and premium detections. Microsoft has a full list of the risk detectors available on Microsoft Learn.

Nonpremium Detections

Customers without Microsoft Entra ID P2 licenses receive basic risk detections, which include:

• Additional Risk Detected: Indicates that there is some risk associated with the user or sign-in, but detailed information is not provided.
• Unfamiliar Sign-In Properties: Flags sign-ins from locations or devices that are not typically associated with the user.
• Anomalous Token: Detects unusual patterns in the use of authentication tokens.

Premium Detections

Customers with Microsoft Entra ID P2 licenses have access to more detailed and advanced risk detections, such as:

• Leaked Credentials: Identifies when user credentials have been found in data breaches.
• Impossible Travel: Detects sign-ins from geographically distant locations within a short time frame, indicating potential credential compromise.
• Malware Linked IP Address: Flags sign-ins from IP addresses associated with known malware.
• Suspicious Inbox Manipulation Rules: Detects unusual changes to inbox rules that may indicate an attempt to hide malicious activity.

Why Choose P1?

The P1 license is a solid choice for organizations that need robust identity and access management features without the additional cost of P. It is particularly suitable for:

• Small to Medium Businesses (SMBs): P1 provides essential security features at a lower cost, making it an economical choice for SMBs.
• Organizations with Basic Security Needs: If your organization primarily needs MFA, conditional access, and self-service password reset, P1 offers these capabilities at a competitive price.
• Companies Using Microsoft 365 E3: P1 is included with Microsoft 365 E3, providing additional value for organizations already using this suite.

Why Choose P2?

The P2 license is ideal for organizations with more complex security requirements and a need for advanced identity protection features. Consider P2 if your organization:

• Requires Enhanced Security: P2’s identity protection and risk-based conditional access provide an additional layer of security, making it suitable for organizations handling sensitive data.
• Needs Privileged Identity Management: PIM helps manage and monitor privileged accounts, reducing the risk of insider threats and ensuring compliance.
• Conducts Regular Access Reviews: P2’s access review feature simplifies the process of auditing and recertifying user access, which is crucial for maintaining security and compliance.
• Uses Microsoft 365 E5: P2 is included with Microsoft 365 E5, offering comprehensive security and compliance features for enterprise customers.
• Benefits from Risky Sign-On Detection: P2’s ability to detect and respond to risky sign-ins helps protect against unauthorized access attempts, enhancing overall security.
• Monitors Risky User Behavior: P2’s risky user detection feature provides continuous monitoring of user activities, identifying potential threats and allowing for proactive responses.

Making the Right Choice

Choosing between Microsoft Entra ID P1 and P2 depends on your organization’s specific needs and budget. Here are some factors to consider:

• Budget: If cost is a primary concern, P1 offers essential features at a lower price. However, if your organization can afford the additional cost, P2 provides advanced security and management capabilities that may be worth the investment.
• Security Requirements: Assess your organization’s security needs. If you handle sensitive data or require advanced threat detection and response, P2’s additional features can provide significant benefits.
• Compliance Needs: Consider your industry’s compliance requirements. P2’s access reviews and privileged identity management can help ensure that your organization meets regulatory standards.
• Existing Microsoft Subscriptions: If your organization already uses Microsoft 365 E3 or E5, the included Entra ID licenses can influence your decision. P1 is included with E3, while P2 is included with E5, providing additional value for these subscriptions.

In conclusion, both Microsoft Entra ID P1 and P2 licensing options offer robust identity and access management features. By understanding the differences in pricing and capabilities, your organization can make an informed decision that aligns with your security needs and budget.

Have any questions about which licensing would be best for your organization? Please reach out to our experts at any time!