Octobits Blog – Microsoft Azure Active Directory (Azure AD) is a fancy identity and access management service you need to streamline your operations and enhance security.
But, to avoid overspending on services, you must understand Microsoft Azure Active Directory pricing.
This is the best way to guarantee your budget is spent wisely and to make the most of your resources.
So, let’s break down several pricing aspects here, shall we?!
What is Microsoft Azure Active Directory?
Microsoft Azure Active Directory (Azure AD) is more than just a fancy term. It’s basically the digital control centre for who has access to what.
Azure AD brings together two key features: a database of your users and groups, and application access management.
This means it not only keeps track of who’s who, but also decides who can use specific apps and resources.
It’s not just about internal apps either. Azure AD also works with external resources, so it’s a single sign-on (SSO) provider.
This means your employees can use one set of credentials to access a whole range of cloud-based apps, from Office 365 to third-party solutions.
And it’s not just about convenience – it’s also about security.
Azure AD also has some great security features like multi-factor authentication (MFA), which means users need more than just a password to log in, and conditional access policies that adapt security measures based on factors like location or device type.
As a point of reference, you might want to read “A Microsoft Azure Stack Pricing Puzzle – Can You Afford to Solve It Alone?“
Azure AD Pricing Tiers
Azure Active Directory has a pricing structure to suit all kinds of organisations. Let’s explore the different tiers and what they offer.
Free Tier
The free tier is your gateway to Azure AD. It gives you all the essential identity and access management capabilities you need, without any extra cost.
It’s perfect for small to medium-sized businesses or organisations just starting out with cloud-based identity management.
The Free tier lets you manage users and groups, sync your on-premises directory with the cloud, and enable single sign-on (SSO) for a smoother user experience across various applications.
This tier is a great place to start with your identity management.
It lets you bring all your user accounts together and manage access to resources.
Premium P1
As your company grows and you need more sophisticated identity management, the Premium P1 tier offers enhanced capabilities.
It’s got all the features of the Free tier, but it also includes some extra goodies like dynamic groups, self-service group management and in-depth reporting.
The real game-changer with Premium P1 is its support for hybrid environments.
It makes it easy to manage identities and access across both your on-premises and cloud infrastructure.
This is especially useful for companies that are going through a digital transformation or have a mix of old and new systems.
The cost for Premium P1 is around AUD 8.80 per user per month, which is a great deal for all the extra features you get.
Premium P2
If you’re looking for the highest level of security and compliance, the Premium P2 tier is the top of the line for Azure AD.
It builds on what you get with the lower tiers, adding advanced identity protection and privileged identity management (PIM).
This tier gives you the tools to spot and deal with identity risks, keep sensitive data safe, and manage access to important resources.
The Premium P2 tier comes with some pretty cool features, like Azure AD Identity Protection.
This tool uses machine learning to spot and deal with potential security threats before they become an issue.
On top of that, Privileged Identity Management (PIM) gives you precise control over privileged accounts, which helps to reduce the risk of unauthorised access.
These features are especially important for companies in highly regulated industries or that handle sensitive customer data.
The cost for Premium P2 is around AUD 13.20 per user per month, which is a pretty good deal for all the security and management features it offers.
Additional Charges
While the pricing structure is easy to understand, it’s worth noting that there might be some extra charges.
Just to flag, there’s a charge for multi-factor authentication (MFA) via SMS or phone calls. Each time you use these methods for MFA, you’ll be charged a flat fee of $0.03.
This shows why it’s important to consider how you use MFA when planning your Azure AD budget, especially if your organisation’s verification is largely done by SMS or phone.
Comparing Azure AD Pricing Plans
The best Azure AD tier for your business is one you can afford that meets your company’s specific needs.
That’s why the Free tier is perfect for small businesses with simple identity management needs.
It’s got all the essentials, like user and group management, single sign-on (SSO) across Azure, Microsoft 365, and popular SaaS apps, and on-premises directory synchronisation.
This tier can handle up to 500,000 objects, which makes it great for organisations just getting started with Azure AD.
If you’re a larger enterprise looking for more advanced identity management, the Premium P1 plan is a great fit.
It’s got all the features of the Free and Basic tiers, plus some pretty advanced tools like dynamic groups, self-service group management, and enhanced reporting.
The Premium P1 plan also works well in hybrid environments, which makes it a great choice for businesses that need to operate both on-premises and in the cloud.
The Premium P2 tier is perfect for organisations that need to keep their security and compliance up to scratch.
It’s got all the features of Premium P1, plus advanced identity protection, privileged identity management (PIM), and access reviews.
These extra features help you automate responses to security threats and manage privileged access more effectively.
So, don’t go overboard on features you don’t need, but also don’t underestimate the importance of robust identity management in today’s digital world.
To help you get started with Azure OpenAI, you may want to read “The Real Value of Microsoft Azure OpenAI Pricing for Australian Business.”
How to Optimise Costs for Azure Active Directory
Azure AD’s pricing structure is flexible, which is great.
But it also means there’s room to optimise and make sure you’re getting the best value for money.
The first thing you need to do is decide which tier is right for you.
It might seem like an obvious point, but it’s really important. Yes, don’t pay for features you won’t use. Take a good look at what your organisation actually needs.
Next, take advantage of Azure AD’s free trial and free tier offers.
They’re a great way to get some hands-on experience with the features before you commit to a paid plan.
Once you’ve picked a plan, monitor its use to ensure you’re getting the most out of it. Azure AD gives you usage reports that can show you some useful insights.
You can also use Octobits as your Azure management platform.
Octobits is a great tool for managing all your Azure subscriptions in one place.
You can see how you’re using Azure, what you’re spending, and where you can save money.
The idea is pretty straightforward: you can make your Azure operations more efficient, get a better handle on your resources, and make smarter decisions to optimize your Azure environment.
If you’re looking for a one-stop solution to manage your Azure subscriptions and control your costs, Octobits is definitely worth a look.
It’s also worth thinking about your current Microsoft licensing.
If you’re already using Microsoft 365 or Enterprise Mobility + Security (EMS), you might already have access to some Azure AD features.
It’s always a good idea to double-check to make sure you’re not paying for something you’re already entitled to.
And that’s exactly where Octobits comes in: it helps you get your head around multiple SaaS platforms that seem disconnected but are actually interconnected.
In Closing
If you pick the right pricing tier and use smart cost-saving strategies, you can easily manage your identity and access needs without spending a fortune.
That’s why it’s a good idea to team up with a specialist like Octobits. The great news is you can get Octobits for free until December 2024.
So, you can take Octobits for a spin to find the right Microsoft Azure Active Directory pricing plan and see how it works for your business.
