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“Azure Active Directory Premium” is the former name for Microsoft Entra ID’s paid identity plans, now called Microsoft Entra ID P1 and P2. P1 provides core identity administration and Conditional Access; P2 adds identity-risk detection, risk-based access policies, and privileged-access controls. Before buying either plan, check whether your Microsoft 365, Azure, or Enterprise Mobility + Security subscription already includes the features and licenses your users need.
What Azure AD Premium is called now
Microsoft renamed Azure Active Directory (Azure AD) to Microsoft Entra ID. The former Azure AD Premium plans are now Entra ID P1 and P2. Entra ID is Microsoft’s identity and access management service for cloud and on-premises environments. The old name remains common in documentation and searches, but the current plan names are P1 and P2.
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| 1 |
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Microsoft also offers Entra ID Free. Its service description characterizes P1 as adding hybrid resource access and advanced administration beyond Free, while P2 adds identity protection and privileged identity management. Specific feature access depends on the license and its terms.
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What P1 includes
P1 is the core paid plan for managing identities and controlling access. Microsoft’s plan descriptions list capabilities including authentication, single sign-on and application access, employee self-service, administration, hybrid identity, multifactor authentication (MFA), passwordless authentication, Conditional Access, and logging and reporting.
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Conditional Access lets an organization set access policies based on conditions such as the user, application, or sign-in context. It is the key licensing distinction for many teams evaluating P1: Microsoft says Conditional Access requires P1, and Microsoft 365 Business Premium customers also have access to Conditional Access features. Check the current Conditional Access overview and the terms for your exact subscription before relying on a particular capability.
What P2 adds over P1
P2 includes P1 capabilities and adds features for detecting identity risk and governing elevated access. Microsoft identifies these principal additions:
- Microsoft Entra ID Protection: detects and investigates identity-related risks. Some Identity Protection features require P2; see Microsoft’s Identity Protection licensing guidance.
- Risk-based Conditional Access: lets policies account for sign-in or user risk. Microsoft distinguishes this from standard Conditional Access: risk-based policies require Identity Protection, which requires P2.
- Privileged Identity Management (PIM): provides controls for managing privileged access.
- Identity governance features: P2 includes basic entitlement management and access reviews, subject to the feature-level licensing rules.
These additions matter when an organization needs to respond to risky sign-ins or identities, limit standing administrative privileges, or review and govern access. P2 is not simply a blanket upgrade to “more security”: check Microsoft’s current licensing documentation for the exact feature, user, and subscription requirements.
P1 vs. P2 at a glance
| Plan | What it is for | Notable capabilities | Licensing point to check |
|---|---|---|---|
| Entra ID P1 | Core paid identity administration and access control | Conditional Access, authentication and application access, hybrid identity, MFA, passwordless authentication, logging and reporting | Conditional Access requires P1; Microsoft 365 Business Premium also provides access to Conditional Access features. |
| Entra ID P2 | P1 plus identity-risk and privileged-access controls | Identity Protection, risk-based Conditional Access, PIM, and basic entitlement management and access reviews | Risk-based Conditional Access relies on Identity Protection, which requires P2. Verify individual feature entitlements. |
For a comparison grounded in your actual environment, identify the access controls and governance features you need, then check whether your existing subscription covers them. Microsoft’s service description and Entra pricing page are the appropriate starting points for checking suite availability and current terms.
Check whether a Microsoft subscription already includes P1 or P2
You may already have an entitlement through a Microsoft suite rather than a standalone Entra ID purchase. Microsoft’s displayed availability information associates P1 with Microsoft 365 E3 and Enterprise Mobility + Security E3, and P2 with Microsoft 365 E5 and Enterprise Mobility + Security E5. The exact availability can depend on edition and eligibility conditions; do not assume that every Microsoft 365 customer has P1 or P2.
- Identify the exact SKU. Check the product name and edition assigned to your organization, not just whether it has “Microsoft 365.”
- Map required features to their licenses. In particular, distinguish standard Conditional Access from risk-based Conditional Access and check Identity Protection, PIM, and governance entitlements if you need them.
- Confirm who needs a license. Verify user and feature-level conditions in Microsoft’s current licensing information, including any cloud or subscription-specific limits.
- Check before adding a standalone plan. Microsoft documents purchasing through Azure, Microsoft 365, Enterprise Mobility + Security licensing, and Volume Licensing. Its premium-edition signup guide describes signup and activation as separate steps.
Pricing and purchase routes
At the time of Microsoft’s US product-page capture on September 28, 2026, its page listed P1 at $7 per user per month, paid yearly, and P2 at $10 per user per month, paid yearly. These are US page prices, not global rates or a guarantee of current pricing. Prices can differ by region, purchase channel, and billing terms, so check Microsoft’s live Entra ID product page and pricing page for your location before purchasing.
Microsoft Learn describes options to associate a premium plan with an Azure subscription and to use an existing Azure or Microsoft 365 subscription, an Enterprise Mobility + Security plan, or Volume Licensing. Available routes and the steps to activate a plan depend on your organization’s subscriptions and purchasing arrangement.
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Which plan should you choose?
- Choose P1 when you need paid identity administration and Conditional Access, and your organization does not already have the necessary entitlement through a suite.
- Consider P2 when you need identity-risk detection, risk-based access decisions, PIM, or the relevant access-governance features.
- Do not buy on the plan name alone. Compare the specific features and users you need with the licenses already assigned to your tenant, then verify current Microsoft terms for the exact SKU.
For many organizations, the practical choice is not simply “P1 or P2,” but whether the required features are already covered by an existing subscription and whether P2’s risk and privileged-access tools are needed.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
