Microsoft Entra ID Review, Pricing & Features

Microsoft Entra ID review covering Free, P1, P2 and Suite pricing, single sign-on, conditional access, and how it compares to Okta and other IAM tools.

Category
Security
Pricing
Freemium, from Free
Verified
Not yet
Last updated
July 18, 2026
Founded
1975
Headquarters
Redmond, Washington, USA
Free PlanWeb AppFree TrialAPIAI

Overview

Microsoft Entra ID is Microsoft's cloud identity and access management platform, formerly known as Azure Active Directory. Microsoft announced the rename on July 11, 2023, rolling it out across products through the rest of that year, while stating explicitly that pricing and functionality were unchanged, only the name.

Entra ID acts as the centralized identity layer for Microsoft 365, Azure, and thousands of third-party SaaS applications, authenticating users once and enforcing access policies everywhere through single sign-on rather than requiring separate credentials per app.

Key Features

Core capabilities available even on the free tier include single sign-on for up to 10 cloud apps per user, multi-factor authentication, self-service password change, and B2B collaboration for inviting external partners into a tenant. Paid tiers unlock Conditional Access, which grants or restricts access based on signals like device compliance, location, and calculated risk.

Entra ID P2 adds Identity Protection, which uses machine learning to flag risky sign-ins and accounts and feeds those risk scores into Conditional Access policies, plus Privileged Identity Management (PIM) for just-in-time elevation of administrative access instead of standing admin rights, and access reviews for periodic recertification of who has access to sensitive resources.

Pricing

Entra ID Free is included with any Microsoft online business service and covers up to 500,000 directory objects, SSO for up to 10 cloud apps per user, and basic sign-in reports. Entra ID P1 (roughly $6 to $7/user/month) adds Conditional Access and hybrid self-service password reset, while Entra ID P2 (roughly $9 to $10/user/month) adds Identity Protection and Privileged Identity Management.

Microsoft Entra Suite bundles P2 with additional security add-ons for around $12/user/month. Many enterprises already have P1 or P2 included through Microsoft 365 E3 or E5 licensing respectively, since Entra ID P1 is bundled into E3 and P2 is bundled into E5.

Key Features

Pros & Cons

Pros

  • Free tier covers SSO, MFA, and B2B collaboration for smaller organizations
  • Deep native integration with Microsoft 365, Azure, and Windows
  • Often already included via existing Microsoft 365 E3 or E5 licensing
  • Identity Protection and PIM provide strong zero-trust security controls at the P2 tier
  • Supports thousands of pre-built third-party SaaS app integrations

Cons

  • Advanced security features (Conditional Access, PIM, Identity Protection) require paid P1 or P2 licensing
  • Licensing tiers and bundling with Microsoft 365 plans can be confusing to price out
  • Prices increased in 2026, raising the cost of P1 and P2 tiers
  • Feature overlap and naming changes from the Azure AD rebrand can confuse long-time admins
  • Full capability set is deepest for organizations already standardized on Microsoft 365 and Azure

Pricing

Frequently Asked Questions

Is Microsoft Entra ID the same as Azure Active Directory?

Yes, Microsoft renamed Azure Active Directory to Microsoft Entra ID starting July 11, 2023; Microsoft stated that pricing and functionality were unchanged, only the name.

Is there a free version of Microsoft Entra ID?

Yes, Entra ID Free is included with any Microsoft online business service and supports up to 500,000 directory objects and SSO for up to 10 cloud apps per user.

What is the difference between Entra ID P1 and P2?

P1 adds Conditional Access and hybrid self-service password reset; P2 adds everything in P1 plus Identity Protection and Privileged Identity Management (PIM).

How much does Microsoft Entra ID cost?

As of 2026, P1 costs roughly $6 to $7 per user per month and P2 costs roughly $9 to $10 per user per month, with a Microsoft Entra Suite bundle around $12 per user per month.

Is Entra ID included in Microsoft 365?

Microsoft 365 E3 includes Entra ID P1 and Microsoft 365 E5 includes Entra ID P2, so many enterprise customers already have a paid tier through existing licensing.

What are the main alternatives to Microsoft Entra ID?

The main competitors are Okta, Ping Identity, and Google Cloud Identity.

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