AzureAD only for office 365 users.

Pankaj Lohumi 21 Reputation points

Hello Guys,

Right now using AzureAD only for office 365 users. Could you explain what is the license cost and how many licenses do I need? I m sorry but I was trying to understand that licensing model, but I want to be sure :)

  • Let's say that now I'm paying for 10 O365 licenses
  • I'll synchronize 50 users from on-premise AD do AzureAD(they will not use O365)
  • All of these 50 users will be using 1 device(autopilot + Intune)
  • No one of these 10 O365 users will be using intune or autopilot.

Do I need to pay for P1 license for all 60 users that are visible in AzureAD?

Do I need to pay for O365 license for all of 60 users visible in AzureAD?

Will I pay for P1 license for 100users or just 50 that I'll assign the license to?

Microsoft Entra ID
Microsoft Entra ID
A Microsoft Entra identity service that provides identity management and access control capabilities. Replaces Azure Active Directory.
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Accepted answer
  1. AmanpreetSingh-MSFT 56,491 Reputation points

    @Pankaj Lohumi Azure AD Premium P2 license is assigned on per user basis. If only 100 users wants to use the premium features, license needs to be assigned to only those 100 users and not to all 200 users.

    For guest users, you need to maintain 5:1 which means, if guest users want to use Premium P2 features, you don't need to assign 5 licenses to 5 guest users. You just need to assign 1 license to any of those 5 guest users. If 10 guest users want to use Premium feature, assign license to only 2 guest users out of those 10 users, in order to stay compliant.

    Hope this answers your question.


    Please do not forget to "Accept the answer" wherever the information provided helps you to help others in the community.

2 additional answers

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  1. Leon Laude 85,716 Reputation points


    For questions related to Office 365, you can reach the experts in the dedicated Office 365 forum over here:

    (Please don't forget to accept helpful replies as answer)

    Best regards,

  2. Vasil Michev 100K Reputation points MVP

    With Office 365, you get a "basic" version of Azure AD, so you don't need to purchase anything. Unless you want the users to take advantage of additional services, such as password writeback, or entitlement management, etc. Intune being one mentioned in your original post is NOT considered part of Azure AD, but requires a separate license, which can be purchased as part of the EMS suite.

    Refer to this page for comparison between the different Azure AD editions/plans:
    And this one for EMS features: