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Short answer: Start with the exact feature, not the suite name. Microsoft Entra ID Free covers baseline identity and security defaults. Entra ID P1 is the usual minimum for Conditional Access. Entra ID P2 adds ID Protection, risk-based policies and a valid license for Privileged Identity Management (PIM). Entra ID Governance can also license PIM and adds lifecycle, entitlement and review capabilities, while Entra Suite combines governance and protection with Internet Access, Private Access and premium Verified ID capabilities. Your actual entitlement depends on the user population, cloud, SKU and agreement, so verify the feature row for your tenant before purchasing or changing licenses.
Choose the feature first
A product label such as “Microsoft 365” or “Entra” does not prove that every Entra service is included. Microsoft assigns licenses at the feature level, and the requirement can change for administrators, members, guests, frontline users, dynamic groups or users in a particular cloud. Use the following map as a starting point, then confirm the exact row in Microsoft’s current Entra licensing table and service description.
| What you need | Minimum plan to evaluate | Important qualification |
|---|---|---|
| Baseline identity, directory services and security defaults | Microsoft Entra ID Free | Free is included with Microsoft cloud subscriptions. Authentication methods and management controls differ from premium tiers. |
| Conditional Access | Microsoft Entra ID P1 | Microsoft states that Conditional Access requires P1; Microsoft 365 Business Premium customers also have access. Connected products can have additional licensing terms. |
| User-risk or sign-in-risk policies and richer risk detections | Microsoft Entra ID P2 with ID Protection | Risk-based Conditional Access requires access to ID Protection, which Microsoft identifies as a P2 capability. |
| Privileged Identity Management | Entra ID P2 or Entra ID Governance | Microsoft’s licensing guidance accepts either license for PIM and its settings. |
| Access reviews, entitlement management and governance lifecycle | Compare P2, Entra ID Governance and Entra Suite | The detailed feature matrix distinguishes basic and advanced capabilities. Check the individual feature row. |
| Secure employee access to the public internet or SaaS | Entra Internet Access or Entra Suite | Internet Access is sold separately and included in Suite. A P1 or P2 prerequisite applies to use of the Global Secure Access service. |
| Secure access to private applications and resources | Entra Private Access or Entra Suite | Private Access is sold separately and included in Suite. Evaluate it against your VPN or zero-trust access requirement and verify the specific SKU. |
| Workforce identity plus governance and network access | Entra Suite | Suite is standalone and included in Microsoft 365 E7. A P1 subscription or a package that includes P1 is required. |
What each Entra tier actually supplies
Microsoft Entra ID Free
Entra ID Free is the baseline directory and identity service included with Microsoft cloud subscriptions. It supports core users, groups, authentication and directory administration, and it provides security defaults for a baseline multifactor-authentication configuration. Security defaults are not the same as the policy-level control available in Conditional Access: they are a predefined baseline rather than a set of granular, conditional rules.
The Free tier does not turn every authentication method or management control into a universally available feature. Microsoft’s authentication comparison distinguishes capabilities across Free, Office 365, P1 and P2. Check that table for the method, registration experience and administrative control your deployment needs instead of treating “MFA support” as a single entitlement.
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Microsoft Entra ID P1
P1 is the normal licensing threshold for Conditional Access. It lets administrators create conditions based on signals such as user, group, application, device, location or client, and then require controls such as multifactor authentication or a compliant device. The exact controls available to a connected Microsoft service can still depend on that service’s own terms.
Microsoft lists P1 as a standalone subscription and as part of several Microsoft bundles. It is included in Microsoft 365 E3, E5, E7, F1 and F3; Enterprise Mobility + Security E3; and Microsoft 365 Business Premium. These inclusions are not interchangeable with similarly named or older offers, so match the tenant’s exact SKU and agreement.
Microsoft Entra ID P2
P2 contains the P1 threshold and adds Microsoft Entra ID Protection. ID Protection supplies risk detections and the risk signals used by user-risk and sign-in-risk policies. Risk-based Conditional Access therefore needs access to the P2-level ID Protection capability; an ordinary P1 Conditional Access license is not, by itself, the risk-policy license.
Microsoft’s summary of P2 also identifies adaptive risk remediation, premium risk detections, unified risk, Privileged Identity Management, basic entitlement management and basic access reviews. For governance decisions, use the detailed licensing matrix rather than assuming that every item in a short product summary has the same scope, user rule or cloud availability.
P2 is sold standalone and is included in Microsoft 365 E5 and E7, selected Defender Suite offers and Enterprise Mobility + Security E5, according to Microsoft’s licensing page. The service description has a separate bundle matrix; consult it for the exact offer in your agreement.
Microsoft Entra ID Governance
Entra ID Governance is a distinct product for controlling who has access, why they have it and when it should be removed or re-certified. Its feature set includes governance capabilities such as entitlement management, access reviews and lifecycle workflows, with the precise level shown in Microsoft’s feature table. Governance also provides a valid PIM license, so an organization that needs PIM but not the full P2 risk stack should compare Governance with P2 rather than assuming P2 is the only route.
Governance features can have different rules for member users, guests and administrators. Some features or advanced functions may not be available in every Microsoft cloud. Confirm the user type, cloud and feature row before assigning licenses.
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Microsoft Entra Suite
Entra Suite combines Entra ID Governance and ID Protection with Entra Private Access, Entra Internet Access and premium Verified ID capabilities. It is available as a standalone subscription and is included in Microsoft 365 E7. Suite requires an Entra ID P1 subscription or another package that includes P1; buying Suite does not remove that prerequisite.
Suite is therefore a fit when the requirement spans identity governance or risk protection and secure network access. If you need only Conditional Access, only PIM, or only one network-access product, compare the relevant standalone license and its prerequisite instead of paying for the broader composition.
Conditional Access: P1 or P2?
For ordinary Conditional Access policies, start at P1. Microsoft explicitly identifies P1 as the requirement and separately notes access for Microsoft 365 Business Premium customers. A policy that evaluates sign-in risk or user risk is a different requirement: those policies use ID Protection and therefore point to P2-level licensing.
Do not infer that every application governed by a Conditional Access policy is licensed simply because the administrator can create the policy. Microsoft services and integrated products can impose their own licensing conditions. Inventory the users being protected, the applications they access and the signals or controls used in each policy.
Examples
- Block legacy authentication for all employees: evaluate P1 (or Business Premium access) because this is a Conditional Access use case, then verify the affected service and user licensing.
- Require MFA when sign-in risk is medium or high: evaluate P2 with ID Protection because the policy is risk-based.
- Use security defaults without policy customization: Free supplies the baseline configuration, but it does not provide the granular conditions of P1.
Which license includes PIM?
Microsoft’s licensing guidance says Privileged Identity Management and its settings require either Entra ID P2 or Entra ID Governance. P2 is the natural comparison when you also need ID Protection and risk-based Conditional Access. Governance is the alternative when the central requirement is privileged access plus broader identity-governance controls.
License the users whose privileged roles and PIM settings require the capability, and confirm whether your scenario involves administrators, eligible members or guests. Built-in directory roles are available without the same license as custom roles, but custom-role assignment has its own P1 requirement for each assigned user.
Governance features need a row-by-row check
“Governance” covers several separate functions. Basic entitlement management or basic access reviews listed with P2 do not automatically establish entitlement to every advanced governance workflow. Compare the exact function in the matrix:
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Access reviews
Access reviews periodically ask reviewers to confirm whether users should retain access. Determine whether you need the basic capability summarized with P2 or an advanced governance feature, and identify whether the reviewed identities are members, guests or privileged users.
Entitlement management
Entitlement management organizes access packages, approval rules, catalog ownership and expiration. The detailed table distinguishes baseline and advanced capabilities, so select the license based on the controls you will configure rather than the word “entitlement” alone.
Lifecycle and joiner-mover-leaver controls
Automated onboarding, role changes and offboarding can involve provisioning, workflows and access-package expiration. Verify each operation’s row, user population and cloud availability. A bundle that includes P1 or P2 is not proof that every Governance function is included.
Internet Access and Private Access
Entra Internet Access
Internet Access is Microsoft’s secure access service for employee internet and SaaS traffic. It is sold as a standalone product and included in Entra Suite. Microsoft’s Global Secure Access overview says users need Entra ID P1 or P2 to use Internet Access and Private Access, and that the Microsoft services traffic profile is included in P1/P2. Treat that statement as a service prerequisite, not as evidence that every standalone Internet Access capability is already included in P1 or P2.
Entra Private Access
Private Access provides access to private applications and resources without relying on a traditional broad network VPN model. It is available standalone or through Suite. Map the applications, connectors, user groups and administrative controls in your design to the product’s current terms; then confirm that the P1/P2 prerequisite and any separate Private Access license are satisfied.
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Suite can reduce product-by-product decisions when the same workforce needs P1-level identity, risk protection, governance and both network-access services. It may be excessive when the organization needs only one of those services. Compare the number of licensed users, existing bundle inclusions and required features before choosing the package.
Bundle inclusions: verify the exact SKU
| Entra license | Standalone availability | Bundles Microsoft lists |
|---|---|---|
| Entra ID P1 | Yes | Microsoft 365 E3, E5, E7, F1, F3; Enterprise Mobility + Security E3; Microsoft 365 Business Premium |
| Entra ID P2 | Yes | Microsoft 365 E5 and E7; selected Defender Suite offers; Enterprise Mobility + Security E5 |
| Entra Suite | Yes | Microsoft 365 E7 |
The table reflects Microsoft’s licensing page, while Microsoft’s Entra service description provides a separate bundle matrix. Do not carry an inclusion from one bundle to another, or assume that a renamed, legacy or education/frontline SKU has identical terms. Check the tenant’s purchase channel, agreement, geography and cloud.
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U.S. prices shown by Microsoft
The following prices were displayed on Microsoft’s U.S. Microsoft Security pricing page when accessed in 2026. Each is a per-user, per-month price with annual payment. Microsoft says prices can vary by agreement, and these figures are not universal quotes.
| Product | Displayed U.S. price | Billing qualification |
|---|---|---|
| Microsoft Entra ID P1 | $7.00 per user/month | Paid yearly; U.S. page accessed in 2026 |
| Microsoft Entra ID P2 | $10.00 per user/month | Paid yearly; U.S. page accessed in 2026 |
| Microsoft Entra Suite | $12.00 per user/month | Paid yearly; U.S. page accessed in 2026 |
| Entra Internet Access | $5.00 per user/month | Paid yearly; U.S. page accessed in 2026 |
| Entra Private Access | $5.00 per user/month | Paid yearly; U.S. page accessed in 2026 |
These are displayed list values, not a promise of your invoice total. Regional currency, channel discounts, commitment terms, taxes, minimums and agreement-specific pricing can change the amount. Recheck the live U.S. page or your licensing partner’s quote immediately before purchase.
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Other licensing thresholds administrators often miss
Logs and monitoring
Audit logs and sign-in logs are available in Free. Provisioning logs, health information, Microsoft Graph activity logs and usage or insight features require P1 or P2/Suite according to Microsoft’s licensing table. If your monitoring design depends on a particular log type, license the users and administrators covered by that row rather than relying on the availability of basic sign-in history.
Custom roles
Built-in directory roles are free. Custom roles require P1 for each assigned user. This distinction affects delegated administration: a tenant may have P1 for Conditional Access yet still need to account for every person receiving a custom role.
Administrative units
Administrative units have distinct rules for administrators, members and dynamic membership. A design that uses administrative units to delegate regional or departmental administration must check each of those populations in the current table.
Guests and frontline users
Guest billing and frontline-user terms can differ from member-user terms. Do not extend a member-user assumption to guests, external collaborators or F-series users without checking the applicable rule. Record the user type alongside the feature in your licensing worksheet.
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- Write the requirement as a feature statement. For example, “risk-based sign-in policy for employees,” “PIM for administrators,” or “private application access for contractors.” Avoid starting with a suite name.
- Identify every affected population. List members, guests, administrators, frontline users, dynamic-group members and service accounts separately. Note which cloud hosts each population.
- Locate the feature row in Microsoft’s current Entra licensing table. Record the minimum tier, whether the feature is preview, and any administrator, member or guest condition.
- Inventory existing subscriptions by exact SKU. Check whether P1 or P2 is already included in Microsoft 365, Enterprise Mobility + Security, a Defender offer or another package. Do not rely on a sales nickname.
- Check prerequisites and interacting services. For Suite, confirm P1 or a package containing P1. For Internet Access or Private Access, confirm the Global Secure Access prerequisite and the separate product entitlement. For Conditional Access, inspect the protected workload’s own terms.
- Compare the narrowest valid option with a bundle. Price P1, P2, Governance, Internet Access, Private Access and Suite for the same user count and billing term. Include licenses already owned so you compare incremental cost, not catalog prices alone.
- Validate geography and agreement. Confirm availability in the tenant’s cloud and the price under your Microsoft agreement. Governance features are not guaranteed to be available in every cloud.
- Test entitlement in the tenant before broad rollout. Assign a pilot license, verify that the required portal controls and policy options appear, and check the service health and licensing pages. A visible toggle is not a substitute for contractual entitlement, but a missing control can reveal a SKU or assignment problem.
- Document the decision. Keep the feature, user population, SKU, prerequisite, cloud, purchase date and renewal terms together. Recheck the matrix when Microsoft changes a bundle or moves a feature out of preview.
Common mistakes and how to correct them
Assuming Microsoft 365 E3 includes P2
E3 is listed with P1, not P2. If you need ID Protection, risk-based policies or the P2 route to PIM, compare a P2 add-on or an eligible bundle rather than treating E3 as an E5 entitlement.
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Buying P2 for every Conditional Access policy
P2 is unnecessary solely because Conditional Access is in use. P1 is the stated threshold for ordinary Conditional Access. Move to P2 when the design requires ID Protection or risk-based policies, or when another P2 feature justifies it.
Assuming Suite includes its own P1 prerequisite
Suite requires P1 or a package that includes P1. Verify that prerequisite for every user who will use the Suite capabilities.
Counting a free log as a premium monitoring service
Free audit and sign-in logs do not establish entitlement to provisioning logs, health, Graph activity logs or usage insights. Map the monitoring requirement to the corresponding row.
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A feature available for a member in one commercial cloud may have different terms for a guest, frontline user or another cloud. Record those dimensions before assigning licenses.
Using a marketing summary as the contract
Short pricing-page descriptions are useful for orientation, but the detailed licensing table and service description control the feature-level decision. Keep both references with the purchase record.
Administrator verification checklist
- Have you named the exact feature, rather than only “Entra” or “Microsoft 365”?
- Have you separated ordinary Conditional Access from risk-based Conditional Access?
- Have you checked whether PIM is covered by P2 or Entra ID Governance?
- Have you verified P1 for Suite, Internet Access and Private Access prerequisites?
- Have you matched the precise Microsoft 365, EMS, Defender or E7 SKU?
- Have you identified member, guest, administrator, frontline and dynamic-membership populations?
- Have you checked the tenant’s cloud and the feature’s regional availability?
- Have you confirmed the current agreement price and annual-payment terms?
- Have you reviewed the detailed Entra licensing table and service description immediately before purchase?
Sources to keep with the decision
Use Microsoft’s current “Microsoft Entra licensing” documentation for feature-level tables and product-specific requirements, the Microsoft Security “Microsoft Entra Pricing” page for current purchase options, and the “Microsoft Entra service description” for bundle inclusion details. Licensing, prices, feature availability and product terms can change; the prices above were observed on the U.S. page in 2026 and should be rechecked before an order or renewal.
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.
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