Switching from Azure AD P2 license to P1

Question

We have purchased "Azure Active Directory Premium P2" license for a 1 year subscription with a monthly billing frequency.
Even though the current P2 subscription is still active, is it possible to switch to "Azure Active Directory Premium P1" as we don't use the premium features offered with P2 anymore and we are good/sufficient with using P1 features going forward.

If this is possible then please advise us how we can achieve this without affecting the licensed users. (not using any P2 features)

Best
Pavan

Answer 1

It is certainly possible to downgrade the licenses technically without causing any disruption. The process is to purchase the P1 licenses and then unassign the P2 licenses and then assign the P1 licenses.

However, depending on a number of factors you may be committed to a 1 year agreement on the P2 licenses at this point, especially if you purchases these licenses more than 72 hours ago.

I will refer you to this page for more information: https://learn.microsoft.com/en-us/microsoft-365/commerce/subscriptions/cancel-your-subscription?view=o365-worldwide

Answer 2

Azure AD Premium Plan 1 and Plan 2 are similar in many ways. The AAD Premium P1 license packs a lot of punch with several security features like Password Protection; Self-service password reset, Conditional Access, and Hybrid Identities, among others. In my experience, this license should suffice many organizations.

However, the areas where the AAD Premium P2 license scores over P2 are pretty significant as far as security is concerned. And this is precisely why the verdict here leans towards it.

Some of the features in the portal will be restricted if you downgrade to P1