Azure AD P2 Requirements and Benefits

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Azure AD P2 is a robust identity and access management solution that offers a range of benefits for organizations. It provides a single, unified platform for managing user identities, access, and security across all applications and services.

One of the key requirements for Azure AD P2 is that your organization must have at least 500 users. This is because Azure AD P2 is designed for larger enterprises that need advanced features and scalability.

With Azure AD P2, you get advanced threat protection and security features, including multi-factor authentication and conditional access. This helps protect your organization's sensitive data and applications from cyber threats.

Azure AD P2 also includes advanced reporting and analytics capabilities, which provide valuable insights into user behavior and application usage.

What is Azure AD P2?

Azure AD P2 is a premium version of Azure Active Directory that offers advanced security and identity features.

It provides a comprehensive set of security features, including advanced threat protection, conditional access, and privileged identity management.

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Azure AD P2 offers advanced identity protection, including risk-based conditional access, which allows administrators to control access to resources based on user risk levels.

This feature helps prevent unauthorized access to sensitive data and applications.

Azure AD P2 also includes advanced identity governance, which provides features such as entitlement management and access reviews.

These features help organizations manage user access and ensure that only authorized users have access to sensitive resources.

Azure AD P2 supports self-service password reset, which allows users to reset their passwords without needing to contact the help desk.

This feature saves time and reduces the workload for IT administrators.

Azure AD P2 also includes advanced reporting and analytics, which provides detailed insights into user activity and security events.

This information helps organizations identify potential security threats and improve their overall security posture.

Pricing and Plans

The cost of Azure AD DS varies depending on the number of users, hours of use, and tier chosen, but combining the Standard tier with a less expensive region can optimize costs. There is also a one-time setup fee of $100 per domain.

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Azure AD P2 plan costs $9/user/month, which is $3 more than the Premium P1 plan. This extra cost gets you Identity Protection, Privileged Identity Management, and the ability to create Access Reviews.

Microsoft offers a free account for individuals to access AIP-protected content, but for enterprises, AIP features are included for free with Office 365 Enterprise E3 and E5 plans. This includes encryption protection, integrated security, and administrator controls.

Pricing: Free, MS 365 & Premium

The free version of Azure Active Directory (Azure AD) is available, providing basic online identity management features like directory synchronization, user provisioning, and single sign-on.

You can also get Azure AD through Microsoft 365 subscriptions, which include additional features like email, collaboration tools, and security features.

Microsoft 365 Business Basic costs $5.00 per user per month, while the Standard plan costs $12.50 and the Premium plan costs $20.00 per user per month.

The free version of Azure AD is a great option for small businesses with basic identity management requirements.

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Azure AD also offers two premium plans: Premium P1 and Premium P2, which cost $6.00 and $9.00 per user per month, respectively.

The Premium P2 plan includes additional features like Identity Protection, Privileged Identity Management, and Access Reviews.

There is also a one-time deployment fee of $100 per domain for Azure AD Domain Services, which can add to your overall costs.

You can optimize your costs by combining the Standard tier and a less expensive deployment region, but this will depend on your specific needs and requirements.

Why Is Required?

Azure AD standardizes security and compliance features across organizations, making it a crucial requirement for many businesses.

Admins can generate granular security and activity reports for better management, giving them a clearer picture of their organization's online activities.

All Microsoft Online business services, including Office 365 and standalone Microsoft Azure subscriptions, rely on Azure AD for sign-in and identity protection.

Azure AD is free with any Microsoft Online business service, including Office 365, which means users can take advantage of its identity management features without extra costs.

The Premium P1 and Premium P2 plans can further augment the capabilities of Azure AD, offering additional features and benefits for businesses that need more advanced security and compliance tools.

Features and Capabilities

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Azure AD P2 offers a range of features and capabilities that take identity and access management to the next level. With a price tag of $9/user/month, it provides all the features of the Premium P1 plan, including Identity Governance & Access management, Application access management, and Hybrid identity management.

One of the key features of Azure AD P2 is Identity Protection, which allows for conditional access to applications. This means that administrators can set policies to control who can access certain applications and under what conditions. Additionally, P2 comes with Privileged Identity Management (PIM), which enables administrators to manage privileged accounts and reduce the risk of credential compromise.

Here are some of the key features and capabilities of Azure AD P2:

  • Identity Protection for conditional access to applications
  • Privileged Identity Management (PIM) for managing privileged accounts
  • All features of the Premium P1 plan, including Identity Governance & Access management, Application access management, and Hybrid identity management

Azure AD P2 also offers a cost-effective way to manage AD, as it does not require the purchase of your own Active Directory servers. This is particularly useful for organizations that need to manage AD across on-premises and cloud-hosted environments.

Hybrid Deployments

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Azure AD Connect is Microsoft's solution to enable hybrid Windows AD and Azure AD deployments. It syncs data between on-premise DCs and the cloud.

You can use Azure AD Connect to sync user accounts from your on-premise system to your Azure tenant. This allows your users to have the same user id and password on-premise and in the cloud.

Azure AD Connect provides password hash synchronization, pass-through authentication, federation, and health monitoring. These features let you manage your hybrid environment more easily.

Azure AD DS is another option for hybrid deployments. It's for organizations that need a synchronized identity experience across on-premises and cloud-hosted environments.

Here are some common use cases of Azure AD DS:

  • Azure AD DS is for organizations that need a synchronized identity experience across on-premises and cloud-hosted environments.
  • You can enable Hybrid Active Directory deployment.
  • AD DS provides a cost-effective way to manage AD.
  • You can enable multi-factor authentication (MFA) for users who log in to domain-joined computers and applications in Azure.
  • Azure AD DS provides a safe way to manage user accounts and groups.

Azure AD DS can also be used to extend on-premises AD to the cloud while keeping your on-premises AD working as it is.

Types of Information Protection Plans

There are three subscription plans of Azure Information Protection available from Microsoft: Azure Information Protection for Office 365, Azure Information Protection Premium P1 and Azure Information Protection Premium P2.

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The Azure Information Protection for Office 365 plan is free for individuals who need to access AIP-protected content by entering their work email address, which allows them to install Microsoft's AIP app to view the protected content.

The free plan also benefits enterprises that subscribe to the Office 365 Enterprise E3 and E5 plans, which include features such as encryption protection for email and documents, integrated security with Office apps, and access to administrator AIP controls.

Windows Server OS and Management

As you navigate the world of Windows Server OS and management, you'll want to consider the various features and capabilities at your disposal. Azure Information Protection is a Microsoft offering that adds security to files, including sensitive emails and files copied to flash drives.

Rampant use of elevated privileges can be hazardous to enterprises, but Azure Active Directory's feature helps to rein in access and manage resource access. With this feature, you can limit access to sensitive areas of your network.

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Azure Active Directory is more than just Active Directory in the cloud, and its premium editions offer additional features and capabilities. By choosing the right edition, you can find the best fit for your organization.

Here are some key features to consider when selecting an Azure Active Directory premium edition:

By understanding these features and capabilities, you can make informed decisions about how to manage your Windows Server OS and ensure the security and efficiency of your organization.

Security and Compliance

To get your organization ready to use Azure AD P2, you need to focus on a few key areas. IT administrators must prepare four key areas to get their organization ready to use Azure Information Protection.

Azure AD P2 requires a robust security and compliance framework. IT administrators must prepare four key areas to get their organization ready to use Azure Information Protection.

To achieve this, ensure that you have a solid understanding of the Azure Information Protection requirements. IT administrators must prepare four key areas to get their organization ready to use Azure Information Protection.

Common Attacks Against

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Malicious attackers often target cloud-enabled infrastructures like Azure AD, and brute force attacks are a common method used to infiltrate accounts. Attackers use vast collections of usernames and passwords from data breach dumps to try to break into Azure AD accounts, known as credential stuffing.

A good password policy and multi-factor authentication can thwart most brute force attacks, but it's essential to monitor data to detect malicious activity inside your tenant in case an attacker succeeds with a single login attempt.

Phishing is another top attack against Azure AD users, which can lead to credential theft or malware infection, providing attackers with a foothold to access your tenant. Azure AD provides warnings when you open an email from an outsider or untrusted source.

You can enable this setting, and other email protections, in the Azure AD Management Console to help prevent phishing attacks.

Information Protection Requirements

To ensure your organization is prepared for Azure Information Protection, IT administrators must prepare four key areas.

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Azure Information Protection requires IT administrators to prepare four key areas, which can be a significant undertaking.

The first area is to understand the organization's data classification needs.

This involves identifying and categorizing sensitive data, which is essential for effective protection.

IT administrators must also prepare the necessary infrastructure, including servers and network configurations.

This includes setting up Azure services and integrating them with existing systems.

Another key area is to train users on the proper use of Azure Information Protection.

This includes educating them on how to classify and protect sensitive data.

Lastly, IT administrators must develop policies and procedures for data protection and compliance.

This includes establishing guidelines for data handling, storage, and sharing.

Setup and Configuration

To set up Azure AD P2, you need to have either the Azure AD Premium P2 license or EMS E5 license. This license is required for users who will be performing certain activities such as managing role assignments, approving or rejecting role activation requests, and performing access reviews.

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You need to calculate the total number of Azure AD Premium P2 licenses needed based on the number of users performing these activities. For example, if you have 10 employees, and 2 of them are assigned as approvers for role activation requests, and 4 administrators are managed through Privileged Identity Management, you would need 6 Azure AD Premium P2 licenses.

To calculate the number of licenses needed, you need to consider the number of users assigned as eligible to Azure AD or Azure roles managed using PIM, users who are assigned as eligible members or owners of privileged access groups, users who approve or reject role activation requests in PIM, users assigned to an access review, and users who perform access reviews.

Setup

To set up Azure Active Directory (Azure AD) and Privileged Identity Management (PIM), you need to acquire the necessary licenses. This includes Azure AD Premium P2 licenses, which are required for users assigned as eligible to Azure AD or Azure roles managed using PIM.

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Before configuring PIM, you need to determine the total number of Azure AD Premium P2 licenses needed. This is based on the number of users performing specific activities, such as assigning users as eligible to Azure AD or Azure roles, approving or rejecting role activation requests, and performing access reviews.

To calculate the number of licenses needed, consider the following scenarios:

  • Users assigned as eligible to Azure AD or Azure roles managed using PIM
  • Users assigned as eligible members or owners of privileged access groups
  • Users who approve or reject role activation requests in PIM
  • Users assigned to an access review
  • Users who perform access reviews

For example, if you have 11 employees, 1 Global Administrator, 2 approvers for role activation requests, and 4 administrators managed through PIM, you would need 6 Azure AD Premium P2 licenses.

Only a Global Administrator or a user with the role of a Privileged Role Administrator can manage role assignments for other users in Azure AD. For Azure Resource roles, only a subscription Administrator, resource owner, or a resource user access administrator can manage access for other administrators.

To configure Azure AD PIM, you need to follow these steps:

1. Sign in to the Azure Portal as a Global Administrator.

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2. Click on Azure Active Directory.

3. Alternatively, type Privileged Identity Management in the search bar and click on the result.

4. Click on Activate under Azure AD Premium P2.

Note that users who set up and configure PIM, access policies, receive alerts, and set up access reviews for role assignments do not need an Azure AD Premium P2 license.

Here's a summary of the user roles required for PIM:

  • PIM Admins: Global Administrator, Security Administrator, and Privileged Role Administrator
  • Approvers: Users who approve or reject role activation requests
  • Access Reviewers: Users who perform access reviews
  • Eligible Role Users: Users who need a license to become eligible for admin roles via PIM

On-Prem vs Cloud

As you start setting up and configuring your Active Directory, you'll need to decide between an on-premises AD and Azure AD. On-premises AD relies on LDAP, whereas Azure AD uses HTTP requests to access resources.

Azure AD takes a divergent path from traditional on-premises Active Directory. This makes it far more capable than its on-prem counterpart.

On-premises AD can be inflexible and difficult to scale, whereas Azure AD offers greater flexibility and scalability.

Comparison and Migration

In 2024, organizations are increasingly looking to modernize their identity and device management strategies by transitioning from on-premises Active Directory (AD) to Entra ID (Previously called Azure Active Directory (AAD)).

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This move is driven by the need for a more modern approach to identity and device management. Organizations are looking to Entra ID for its ability to provide a cloud-based identity and device management solution.

Organizations can expect significant benefits from migrating to Entra ID, including improved scalability and security.

ADFS vs Active Directory

ADFS is an extension of Azure Active Directory, not a different product or capability.

It provides Single Sign-On flexibility to users who use applications that cannot use Integrated Windows Authentication (IWA) with Azure Active Directory.

In essence, ADFS is a way to bridge the gap between Azure AD and applications that don't support IWA.

This means you can still provide seamless authentication experiences for your users, even when they're using non-IWA compliant apps.

Plan Comparison

Azure AD P1 and P2 plans differ in price, with P1 costing $6/user/month and P2 costing $9/user/month. The main difference between the two plans is the additional features in P2.

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Premium P2 has all the features of P1, including Identity Protection, which allows conditional access to applications. This feature is not available in P1.

With P2, you can also manage privileged accounts using Privileged Identity Management (PIM). This allows for more secure management of sensitive accounts.

Azure Information Protection (AIP) offers three subscription plans: Azure Information Protection for Office 365, Premium P1, and Premium P2. The free account is available for individuals who need to access AIP-protected content.

The free account requires the user to enter their work email address to validate their identity. Once validated, they can install the AIP app to view protected content on their devices.

With Office 365 Enterprise E3 and E5 plans, AIP features are included for free, including encryption protection for email and documents. These plans also include integrated security with Office apps and administrator AIP controls.

Migrating to Entra ID

Organizations are increasingly looking to modernize their identity and device management strategies by transitioning from on-premises Active Directory (AD) to Entra ID.

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In 2024, many organizations are making this move, as Entra ID offers a more modern approach to identity and device management.

This move is driven by the need for more flexibility and scalability, as on-premises AD can become cumbersome to manage as an organization grows.

Entra ID, previously known as Azure Active Directory (AAD), provides a cloud-based solution that can be easily scaled up or down as needed.

By making this transition, organizations can gain a more streamlined and efficient identity management system.

Frequently Asked Questions

Do I need a P2 license for every user?

No, a P2 license is not required for every user, but a license must be assigned to each user who will use a feature that requires one. Check your Azure or Microsoft 365 agreement for specific requirements on licensing and user assignments.

How much is Azure AD Premium P1 or P2?

Azure AD Premium P1 costs $6/user/month, while Premium P2 costs $9/user/month and includes additional features like Identity Protection. Learn more about the differences between these plans to determine which one is right for you.

Is Azure P2 worth it?

Azure AD Premium P2 is ideal for organizations requiring advanced security, compliance, and governance features. Consider P2 if your organization's needs go beyond the essential identity and access management features of P1.

Does business premium include P2?

No, Microsoft 365 Business Premium does not include Azure AD Premium P2. It includes Azure AD Premium P1, which is also available in EMS E3 and Microsoft 365 E3.

Judith Lang

Senior Assigning Editor

Judith Lang is a seasoned Assigning Editor with a passion for curating engaging content for readers. With a keen eye for detail, she has successfully managed a wide range of article categories, from technology and software to education and career development. Judith's expertise lies in assigning and editing articles that cater to the needs of modern professionals, providing them with valuable insights and knowledge to stay ahead in their fields.

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