Azure P2 Licensing for Microsoft Entra Identity Governance Explained
Question details
The user needs to understand how Microsoft Entra ID Premium P2 licensing applies to identity governance features, including cost estimates and per-user requirements.

- Product
- Microsoft Entra ID
- Device & OS
- not provided
- Scenario
- Planning enterprise IT budget and evaluating license requirements for identity governance deployment.
- Observed behavior
- Seeking clarity on whether every user requires a Premium P2 license to use advanced features and what the estimated monthly costs entail.
Before purchasing licenses, assess your organization's exact needs for Privileged Identity Management (PIM) and Identity Protection to determine how many users actually require Premium P2 features.
Evaluate Microsoft Entra ID Premium P2 Licensing and Costs
Review the feature inclusions and per-user licensing requirements to estimate your organization's monthly Azure costs.
Microsoft Entra ID Premium P2 provides advanced identity governance capabilities. To remain compliant and use the complete feature set, Microsoft generally requires a P2 license for every user benefiting from the service.
Determine if your organization requires advanced features like Privileged Identity Management (PIM), Identity Protection, or complex access reviews, which are exclusive to the Premium P2 tier.
Estimate your monthly budget based on user count. The standard estimated cost is around $10 per user per month. For example, an organization with 400 users would look at an estimated cost of $4,000 per month.
Ensure that every user who is subject to identity governance policies or access reviews is assigned a valid Premium P2 license in the Microsoft 365 Admin Center or Azure Portal.
Reach out to Azure Sales or your Microsoft Licensing Solution Provider for a customized quote, as enterprise agreements and volume discounts can significantly alter your actual pricing.

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- 1. Visit the website: Go to the official WPS Office website to access the enterprise and standard downloads.
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Frequently Asked Questions
Do all users in the tenant need an Entra ID Premium P2 license?
Generally, you need a P2 license for every user who directly benefits from its features. This includes users who are targeted by access reviews, entitlement management, or risk-based conditional access policies.
Can I mix Premium P1 and Premium P2 licenses in the same tenant?
Yes, you can mix licenses within the same tenant. However, you must ensure that only the users specifically licensed for P2 are targeted by P2-exclusive features like Privileged Identity Management (PIM).
Is Microsoft Entra ID Premium P2 included in Microsoft 365 E5?
Yes, Microsoft Entra ID Premium P2 is fully included as part of the Microsoft 365 E5 and Microsoft 365 E5 Security licensing suites, so no separate purchase is necessary for users holding those licenses.




