Microsoft Multitenant Collaboration

Question

Hi, I would like to clarify license requirements in multi-tenant collaboration/synchronization in M365 Admin Center/Entra ID. Do I need each users to have Microsoft Entra ID P1 licenses in home tenant or target tenant? Or do I need just one entra id id p1 for each tenant? I don't understand the documentation

Answer 1

Hello,

I'd be happy to clarify the licensing requirements for multi-tenant collaboration and synchronization using Microsoft Entra ID (formerly Azure Active Directory).

Cross-Tenant Synchronization Licensing Requirements

Overview:

• Cross-tenant synchronization automates the creation, maintenance, and removal of users in a target tenant based on changes in a source tenant.

Licensing Requirements:

• Source (Home) Tenant:
  • Microsoft Entra ID P1 License Required:

     - __Each user__ in the __source tenant__ whose identity is being synchronized to a target tenant __must have a Microsoft Entra ID P1 license assigned__.
    
     - __Target Tenant:__
    
        - __No Additional License Required:__
    
              - The target tenant __does not require__ additional Entra ID P1 licenses for the synchronized users.
    

Explanation:

• Per-User Licensing in Source Tenant:
  • The Entra ID P1 license is needed for each user in the source tenant to enable advanced features like cross-tenant synchronization.
    • This means you need to assign an Entra ID P1 license to every user in the home (source) tenant who will be synchronized to the target tenant.
    • No Need for Licenses in Target Tenant for Synchronized Users:
      • The target tenant doesn't need to purchase Entra ID P1 licenses for the inbound users because the licensing requirement is covered in the source tenant.
      • Minimum License Purchase:
        • Microsoft Entra ID P1 licenses are available through various licensing programs, and you can purchase the exact number of licenses needed for your users.

Example Scenario:

• Your Organization:
  • Source Tenant (Home Tenant): contoso.com
    • Target Tenant: fabrikam.com
    • Users:
      • You have 50 users in contoso.com that need to be synchronized to fabrikam.com.
      • Licensing:
        • You need 50 Microsoft Entra ID P1 licenses assigned to those 50 users in the contoso.com tenant.
        • No Licenses Needed in fabrikam.com:
          • fabrikam.com does not need to purchase Entra ID P1 licenses for these users.

Additional Notes:

• Cross-Tenant Access Settings:
  • Ensure that the cross-tenant access settings are properly configured in both tenants to allow synchronization.
  • Other Features Requiring Licensing:
    • If you plan to use additional features like Conditional Access, Multi-Factor Authentication, or Identity Governance, you may need appropriate licenses for those features as well.

References:

• Cross-Tenant Synchronization Licensing Requirements
• Overview of Cross-Tenant Synchronization

Summary:

• Each user in the source (home) tenant who is synchronized to a target tenant requires a Microsoft Entra ID P1 license assigned to them in the source tenant.
• The target tenant does not need to assign additional Entra ID P1 licenses for these users.

I hope this clarifies the licensing requirements for multi-tenant collaboration and synchronization in Microsoft Entra ID. If you have any further questions or need additional assistance, please feel free to ask.

Kind regards,
msftep