Azure Active Directory (AD) – Free vs Office 365 Apps vs Premium P1 vs Premium P2

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Azure AD – Free vs Office 365 Apps vs Premium P1 Vs Premium P2

Microsoft Azure Active Directory is a powerful identity and access management cloud solution with integrated directory services, application access management, and advanced identity protection. While any subscription of a commercial online service such as Azure, Dynamics 365, Intune, and Power Platform includes the Free version, the Office 365 Apps Edition is included in E1, E3, E5, and F1 subscriptions. As a Tier 1 CSP for Azure, Apps4Rent offers Azure Active Directory Premium P1 and P2 plans for Office 365 and Azure subscribers.

Here’s the table of feature comparison of Azure Active Directory plans including Free version vs Office 365 apps vs Premium P1 vs Premium P2:

Features	Office 365 Apps	Microsoft Entra ID Free (Formerly Azure AD Free)	Microsoft Entra ID P1 (Formerly Azure AD P1)	Microsoft Entra ID P2 (Formerly Azure AD P2)
	O365 F1, E1, E3, E5	Free	$6/month Based on Annual Commitment	$9/month Based on Annual Commitment
Core Security Features
Directory Service Entries	Unlimited	500000	Unlimited	Unlimited
Single Sign-On (SSO) Access	10 Apps Max Excluding Office Apps	10 Apps Max Excluding Office Apps	Unlimited	Unlimited
Create and Manage Users and Groups
Azure Active Directory/ 3rd Party Identity Provider Support
Password Change Self Service
MFA
Reports on Security and Usage
Office 365 Applications Management Features
Company Branding Customizations
Service Level Agreements (SLA)
Two-Way On-Premises and Azure Directory Synchronization
Advanced Features
Custom Rules for Banned Passwords
Windows Server Active Directory Password Protection
Self-Service Password Management with On-Premises Write-Back
Advanced Group Access Management
Microsoft Cloud App Discovery			Requires Credentials	Automatic Redirection
Advanced Azure AD Features
Advanced Usage and Security Reports
Hybrid Identity Management Tools
Application Proxy
Microsoft Identity Manager User Client Access License
Connect Health Access
Advanced Group Access Management Features
Dynamic Group Creation
Delegate Group Creation Permission
Define Group Naming Policy, Expiration, Guidelines, and Classification
Conditional Access Settings
Group, Location, and Device Status for Conditional Access
Integrated Azure Information Protection, Microsoft Cloud App Security
Customizable Terms of Use
3^rd Party Identity Governance Partners Support
SharePoint Access Control
Identity Protection and Governance Features
Risky Accounts Detection
Vulnerabilities and Risk Event Detection and Investigation
Conditional Access Policies Customization for Risks
Privileged Identity Management (PIM)
Entitlement Management
Access Reviewing

Frequently Asked Questions (FAQs)

How is Azure AD, Office 365, and Azure related?

Office 365 is a productivity suite that includes a range of applications and services such as Office, Teams, SharePoint, Project, Power BI, Intune, and more. In simple definition, Microsoft Azure is an ever-expanding set of cloud services to build, manage and deploy applications on a massive, global network using popular tools and frameworks. Azure Active Directory (AD) is a sub-component of Azure for managing user identities.

Why is Azure AD required?

Azure AD standardizes security and compliance features across organizations. Admins can generate granular security and activity reports for better management. All Microsoft Online business services, including Office 365 and standalone Microsoft Azure subscriptions rely on Azure AD for sign-in and identity protection. All Azure AD free features are available with any Microsoft Online business service. As a Microsoft Online business service that leverages the cloud capabilities of Microsoft, Office 365 users too will be using the free features on Azure for identity management. The Premium P1 and Premium P2 plans can further augment the capabilities over and above that of the Office 365 Apps plan.

What is the difference between Azure AD and ADFS?

Active Directory Federation Services (ADFS) is a Single Sign-On option for providing flexibility to users who use applications that cannot use Integrated Windows Authentication (IWA) with Azure Active Directory. It is an extension of Azure Active Directory and not a different product or capability.

What is the difference between Azure AD P1 vs P2 plan?

There are three essential differences between Azure AD P1 and P2. The Premium P1 plan is priced at $6/user/month while the Premium P2 plan comes at $9/user/month. Premium P2 has all the features of P1 plan. Additionally, the Premium P2 plan offers Identity Protection feature to allow conditional access to applications. It also comes with Privileged Identity Management (PIM) allowing you manage privileged accounts. With Azure Ad P2 subscription, you can create Access Reviews.

What does Apps4Rent offer for Azure AD services?

When you purchase Azure AD services from Apps4Rent, our Microsoft-certified Azure experts can help you with AD set up and management. You also get 24/7 support via phone, chat, and email for the end users which is extensive than Microsoft Support. Submit your requirements and our sales team will get back to you.