Understanding Azure AD Application Proxy License Requirements
Question details
The user needs clarification on whether an Azure AD Premium license is required for all users accessing an application via Azure AD Application Proxy, or just for the administrator configuring it.

- Product
- Azure AD Application Proxy
- Device & OS
- not provided
- Scenario
- Determining accurate enterprise licensing needs for deploying and accessing applications published through Azure AD Application Proxy.
- Observed behavior
- There is uncertainty regarding which users (administrators vs. end-users) require an Azure AD Premium P1 or P2 license to remain compliant.
Ensure you have access to your Microsoft Entra ID (formerly Azure AD) admin center to review your organization's current subscription tier and available user licenses.
Identify and Assign Azure AD Premium Licenses for App Proxy Users
Both administrators and end-users accessing the Application Proxy require proper licensing. Assigning Azure AD Premium P1 or P2 licenses to these users is necessary for compliance.
Microsoft's licensing model for Azure AD Application Proxy requires that any user accessing an application published through the proxy must be licensed with Azure AD Premium P1 or P2. It is not sufficient for only the administrator configuring the connector to hold the license.
Log in to the Microsoft Entra admin center, navigate to 'Billing', and select 'Licenses' to check if you have Premium P1 or P2 licenses available.
Go to 'Users', select the end-users who will be accessing the published applications, and assign them the required Premium P1 or P2 license under the 'Assignments' tab.
Ensure your Application Proxy connectors are actively running and that the enterprise application is assigned only to licensed users or groups in the application's properties.

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Frequently Asked Questions
Do guest users require an Azure AD Premium license to use Application Proxy?
Yes, external or guest users accessing applications via Azure AD Application Proxy must be covered by External Identities licensing, which usually follows the Monthly Active Users (MAU) billing model linked to a Premium tier.
Is an Azure AD Premium license required for the server hosting the connector?
No, the on-premises server hosting the Application Proxy connector does not need a specific Azure AD license itself. However, the administrator configuring the connector and the end-users accessing the published apps must hold valid Azure AD Premium P1 or P2 licenses.
What happens if a user accesses an Application Proxy app without a P1 or P2 license?
Accessing Azure AD Premium features without the correct license is a violation of Microsoft's licensing terms. Organizations may face compliance issues and financial penalties during Microsoft license audits if users are found to be improperly licensed.




