#AzureAD : B2B Licensing


In my previous post, I have covered B2B collaboration capabilities and how to use it fundamentals. When you use this service, you should be very clear about licensing requirements for B2B functionalities. There is no black and white licensing requirements for this service but it totally depends on the functionality that you extend for B2B users.

Totally confused???

Let me simplify everything here by an example.

InsideMSTech is a conglomerate and deals in multiple business that includes many subsidiaries and it works along with variety of partners. Company has centralized supporting departments such as Finance, HR, Legal and IT. Many employees of these functions belong to subsidiaries, which are running independently.

Scenario 1: InsideMSTech is inviting external partner users as a B2B guest user and offering free Azure AD features.

License Requirements: No license required as organization is offering free services.

Scenario 2: InsideMSTech is inviting external partner users as a B2B guest user and offering free Azure AD features but guest user must use MFA for dual authentication.

License Requirements: Azure AD P1 license required as organization has mandate to use MFA. Now, you will have another question that how many licenses? You need to acquire 1 Azure AD P1 license for five unique guest users.

Scenario 3: InsideMSTech is inviting external partner users as a B2B guest user and offering Azure AD P1 features but guest user must have identity protect enabled.

License Requirements: Azure AD P1 license required for guest users in 5:1 ratio. But when you enable identity protection for B2B guest users then you must acquire Azure AD P2 licenses in 5:1 ratio.

Scenario 4: InsideMSTech subsidiary employees want to Access Azure AD services as a B2B guest user.

License Requirements: Azure AD license required based on the service used by the subsidiary employees. This license will not be in 5:1 ratio, it will be in 1:1 ratio.

Scenario 5: InsideMSTech subsidiary employees want to Access Azure AD services as a B2B guest user using their personal email address.

License Requirements: Azure AD license required based on the service used by the subsidiary employees. This license will not be in 5:1 ratio, it will be in 1:1 ratio.

Scenario 6: InsideMSTech acquired a small company, employees of this acquired company wants to Access Azure AD services as an employee of acquired company.

License Requirements: Azure AD license required based on the service used by the employees of acquired companies. This license will not be in 5:1 ratio, it will be in 1:1 ratio.

I hope, these scenarios helped you to understand B2B licensing requirements in a much simpler way. If you have any another scenario, where you need any assistance then please write your scenario in comment section. I’ll answer your query and will add your scenario in this post.

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