I have a small business and am using MS 365 Business. Do I need to get MS Entra P1, or am okay with just the (Entra ID) free tier from MS 365?

Stanley Jones 0 Reputation points
2025-04-15T16:02:23.9733333+00:00

I just needed help to see whether or not my company needs to get Entra Premium P1. I know we have Entra ID for free with MS365 but I'm not 100% clear on the advantages of P1 vs free tier functionality. Thanks

Microsoft Security | Microsoft Entra | Microsoft Entra ID
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  1. Goutam Pratti 6,170 Reputation points Microsoft External Staff Moderator
    2025-04-15T16:14:36.9466667+00:00

    Hello @Stanley Jones ,

    I Understand you needed help to see your company needs to get Entra Premium P1, With Microsoft 365 Business, you have access to Microsoft Entra ID Free, which provides basic features such as user and group management, on-premises directory synchronization, basic reports, self-service password change for cloud users, and single sign-on across Azure, Microsoft 365, and many popular SaaS apps.

    If your business requires more advanced features, you might consider upgrading to Microsoft Entra ID P1. The P1 license includes all the Free features and adds capabilities such as:

    • Access for hybrid users to both on-premises and cloud resources.
    • Advanced administration features, including dynamic membership groups and self-service group management.
    • Microsoft Identity Manager and cloud write-back capabilities, which allow self-service password reset for on-premises users.

    If your current needs are met with the Free tier, you may not need to upgrade to P1. However, if you find that your business requires more robust identity management and access capabilities, then P1 could be beneficial.

    You can follow the document for better understanding: What is Microsoft Entra ID, Microsoft Entra licensing

    Hope this helps. Let us know if you have any additional queries. Happy to assist you further.


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