How much does a MS Entra P1 license cost?

Hi @Michael Wetter,

As mentioned by @Marcin Policht, to use Microsoft Teams B2B Direct Connect, your tenant must have Microsoft Entra ID Premium P1 capabilities available.

Microsoft Entra ID P1 (formerly Azure AD Premium P1) is available as:

• A standalone license, or
• Included with certain Microsoft 365 bundles such as Microsoft 365 E3, Microsoft 365 Business Premium, and Enterprise Mobility + Security (EMS) E3.

Microsoft publishes the official pricing and feature comparison on the Entra pricing page:

Microsoft Entra plans and pricing https://www.microsoft.com/security/business/microsoft-entra-pricing

Pricing can vary based on region, currency, and your organization’s licensing agreement (CSP, EA, etc.).

Depending on your organization’s setup, you can purchase Entra ID P1 using one of the following options:

1.Purchase as a standalone license (Microsoft 365 Admin Center)

If you manage your tenant through the Microsoft 365 Admin Center:

1. Sign in to the Microsoft 365 Admin Center
2. Go to Billing → Purchase services
3. Search for Microsoft Entra ID Premium P1
4. Follow the prompts to complete the purchase
5. Microsoft Volume Licensing (CSP / EA)

2.Microsoft Volume Licensing (CSP, EA, etc.)

• Cloud Solution Provider (CSP): Your CSP partner can purchase and manage licenses on your behalf
• Enterprise Agreement (EA): If your organization has an EA, Entra ID P1 can be added through your Microsoft account representative

3.Microsoft 365 bundles

If you already have Microsoft 365 E3 or Business Premium, Entra ID P1 may already be included. You can verify this in the Microsoft 365 Admin Center and decide whether additional licenses are required.

4.Microsoft official website

For individual or small business needs, Entra ID P1 can also be purchased directly via Microsoft’s official website using a Microsoft account.

For B2B Direct Connect:

• External (guest) users do NOT need Entra ID P1 licenses assigned
• Your home tenant must have Entra ID P1 to configure and manage required features such as:
  • Cross-tenant access settings
  • Conditional Access policies

Microsoft confirms that Conditional Access requires Entra ID P1.

• Microsoft Entra licensing (Microsoft Learn) https://learn.microsoft.com/en-us/entra/fundamentals/licensing
• Conditional Access licensing requirements https://learn.microsoft.com/en-us/entra/fundamentals/licensing#microsoft-entra-conditional-access

Kindly let us know if the above helps or you need further assistance on this issue.

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Microsoft Entra ID P1 is typically priced at about USD $6 per user per month on an annual commitment under Microsoft’s standard commercial pricing, although your exact cost can vary depending on your region, currency, volume agreements, nonprofit or education status, or if it is bundled inside other licenses such as Microsoft 365 E3, Business Premium, or Enterprise Mobility + Security E3 which already include Entra ID P1 rights.

You can purchase it directly through the Microsoft 365 admin center by going to Billing and then Purchase services and searching for “Microsoft Entra ID P1” or “Enterprise Mobility + Security E3.” If you buy through a Microsoft Cloud Solution Provider partner they can add the licenses to your tenant and handle billing, which is common for organizations that already work with a reseller. If you prefer direct self service procurement you can also buy through Microsoft’s commercial licensing portal or through your existing Enterprise Agreement if your organization has one.

For B2B Direct Connect with Teams you do not necessarily need to assign Entra ID P1 licenses to external users, but you do need Entra ID P1 capabilities available in your tenant to configure cross tenant access settings and Conditional Access policies that are commonly used with this feature, so many organizations either buy standalone Entra ID P1 licenses for internal users who need those policies or rely on bundled licenses they already own.

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hth

Marcin