Azure AD Premium P2 Upgrade Cost with Microsoft 365 Business Premium
Question details
The user wants to determine the cost structure and licensing rules for upgrading from Azure AD Premium P1 to Premium P2 while using Microsoft 365 Business Premium.
- Product
- Microsoft 365 / Microsoft Entra ID
- Device & OS
- not provided
- Scenario
- Planning a subscription upgrade to access advanced identity protection and governance features for the organization.
- Observed behavior
- Microsoft 365 Business Premium includes Microsoft Entra ID Premium P1. Adding Premium P2 requires purchasing a separate full per-user license rather than paying only the price difference.
You need access to the Microsoft 365 admin center with Global Administrator or Billing Administrator privileges to view, purchase, or modify your organization's licenses.
Review License Terms and Contact Billing Support
Verify the current pricing for the Microsoft Entra ID Premium P2 add-on via your admin portal or contact Microsoft billing support to confirm cost details.
Because Microsoft 365 Business Premium only includes Microsoft Entra ID (formerly Azure Active Directory) Premium P1, obtaining Premium P2 capabilities usually requires purchasing a standalone P2 license at full cost (approximately $9 per user per month, subject to regional pricing). Microsoft typically does not offer a prorated upgrade or 'price difference' SKU for this specific path.
Navigate to the Microsoft 365 admin center (admin.microsoft.com) and log in using your administrator credentials.
On the left sidebar, click on 'Billing' and then select 'Purchase services' to browse available products.
Use the search bar to look for 'Microsoft Entra ID Premium P2' or 'Azure Active Directory Premium P2' and review the listed per-user monthly cost.
If you need a specific bundle or have bulk licensing questions, go to 'Support' > 'Help & support' in the admin center to open a ticket directly with the Microsoft business billing team.
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Frequently Asked Questions
Does Microsoft 365 Business Premium include Azure AD Premium P2?
No, Microsoft 365 Business Premium only includes Microsoft Entra ID (formerly Azure AD) Premium P1. To access P2 features like Identity Protection or Privileged Identity Management, an additional license is required.
Can I just pay the price difference to upgrade from Premium P1 to P2?
Generally, no. Microsoft currently bills the Premium P2 add-on as a separate, full per-user license. There is no standard SKU that only charges the price difference between P1 and P2 for Business Premium users.
Where can I purchase the Microsoft Entra ID Premium P2 license?
You can purchase the standalone add-on directly through the Microsoft 365 admin center by navigating to the 'Billing' menu and selecting 'Purchase services'.
