Azure AD per user license

Question

Can someone please explain in layman’s language what does it mean by Azure AD (AAD) per user license ? If I buy P1 license and have 100 employees in my company and 75 apps All registered in AAD does the costing in this case for 100 users + 75 apps registered multiplied by monthly rate?

Answer 1

@Chetan Krishna Sangoram ,
Regarding this, Azure Active Directory (Azure AD) services require you to license (in this case Azure AD Premium P1) to each of your users or groups (and associated members) for that service. Only users with active licenses will access and use the licensed Azure AD service. Licenses are applied per tenant and do not transfer to other tenants. So, for example, if your company has 200 employees and you want to give P1 access to 100 employees, you need to pay a 100Xmonthly rate (and no cost for apps).

For more information, visit the below sites

• https://learn.microsoft.com/en-us/azure/active-directory/fundamentals/license-users-groups
• https://azure.microsoft.com/en-in/pricing/calculator/?service=active-directory
• https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/licensing-groups-change-licenses

I hope I have answered your question.

Answer 2

Thanks so much @RaviKanth-5629 for prompt reply, your answer has almost cleared my doubt , just one more absolute clarity seeking rejoinder. So if I have my company employee strength using various IT systems needing IAM. Each of such users become a licensed user in P1/P2 and company has to pay for each of those users/ group even if most of them are just registered as objects in AAD for sake of iAM?
Thanks in advance.