Quick Facts
Microsoft Entra ID P1 offers core identity management features like Single Sign-On (SSO), Multi-Factor Authentication (MFA), and Conditional Access, making it suitable for smaller organizations with standard security needs.
Entra ID P2 adds advanced tools such as Identity Protection and Privileged Identity Management (PIM) for automated, risk-based access control, making it ideal for larger organizations with complex compliance requirements.
Implementing a backup solution for Entra ID ensures business continuity by protecting critical identity data against disruptions. This complements both P1 and P2 plans for a comprehensive identity management strategy.
Microsoft Entra ID provides two primary plans for cloud identity management: P1 and P2. Each brings different features designed to meet diverse security needs. But how do you know which one best fits your organization? A closer look at the capabilities and costs of both plans can help you decide.
This article compares the features, security options, and pricing of Microsoft Entra ID P1 and P2.
Understanding Microsoft Entra ID Plans
What is Microsoft Entra ID?
Microsoft Entra ID is a cloud-based identity and access management (IAM) solution for streamlining how organizations manage user identities. It plays an important role in safeguarding corporate resources while offering a simplified way to manage user credentials by enabling secure access to applications, devices, and services.
As businesses modernize their IT infrastructure, Microsoft Entra ID becomes essential in centralizing identity management across cloud and on-premises environments. This centralized approach helps ensure consistent security policies, easier administration, and improved compliance across all platforms.
Key Features of Microsoft Entra ID P1
Single Sign-On (SSO) and Conditional Access
Single Sign-On (SSO) streamlines the user login process by enabling users to access multiple applications with just one set of credentials. This eliminates the need for multiple passwords, reducing password fatigue and the likelihood of password-related security breaches. SSO improves both user experience and organizational efficiency by consolidating authentication.
Conditional Access further enhances security by controlling access to resources based on specific conditions, ensuring that only authorized users from trusted environments gain access. These conditions can include user location, device health, and risk level. For example, access can be blocked or flagged if a user tries to log in from an unfamiliar device or if they’re accessing from a high-risk region.
The integration of SSO and Conditional Access ensures both convenience and security. Users benefit from seamless access to applications, while IT administrators can enforce strict security policies that guarantee that users have the right permissions and access resources under approved conditions.
Multi-Factor Authentication (MFA)
Multi-Factor Authentication (MFA) within Microsoft Entra ID adds an extra layer of protection by requiring users to verify their identity using multiple factors, making it significantly harder for unauthorized individuals to access sensitive systems or data. This is important because relying only on passwords leaves accounts vulnerable to theft or brute-force attacks.
In practice, MFA typically involves two or more of the following authentication methods:
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A password or PIN
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A mobile app or SMS code
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A hardware token or biometric verification (e.g., fingerprint)
By integrating MFA, the Microsoft Entra ID P1 and P2 plans ensure that users need more than just a password to authenticate, thereby greatly reducing the chances of unauthorized access. However, while both plans support MFA as a core feature, there are specific differences in how they improve MFA functionality.
Self-Service Password Reset and Group Management
In identity management systems, user-driven functionalities like Self-Service Password Reset (SSPR) significantly reduce administrative overhead by empowering users to resolve issues and manage access independently. It allows users to reset their own passwords without needing to contact IT support, directly alleviating pressure on helpdesk teams. This capability resolves issues faster for end-users and frees up IT resources for more critical tasks.
Another key feature is Group Management, which enables users to manage their memberships in designated organizational groups. This function simplifies access to shared resources, ensuring users can quickly obtain the permissions they need without requiring intervention from administrators.
These self-service features streamline common tasks, improve user experience by providing faster resolutions, and reduce the overall administrative workload.
Comparing Entra ID P1 and P2 for Business Needs
1. Security and Compliance Requirements
The pressure to meet strict security and compliance requirements, particularly in identity management, is mounting on organizations. Microsoft Entra ID P1 and P2 offer a range of features that address these needs. However, the differences between the two plans can significantly impact how well an organization can protect its assets and maintain regulatory compliance.
Both P1 and P2 include critical security tools like Multi-Factor Authentication (MFA) and Conditional Access policies, which are important for improving security and regulatory adherence. These tools help organizations enforce secure and authorized access to sensitive resources and critical systems.
P2 provides more advanced compliance support by offering enhanced compliance certifications and additional regulatory tools. This makes it a better choice for organizations in highly regulated industries such as healthcare or finance. These advanced tools help corporate entities meet specific guidelines like the General Data Protection Regulation (GDPR) or the Health Insurance Portability and Accountability Act (HIPAA), which P1 might not cover as comprehensively.
The identity protection features in P2 also go beyond those available in P1, with P2’s Identity Protection providing risk detection capabilities that automatically flag suspicious sign-in behavior and provide risk-based actions. P1 and P2 also differ in their audit and reporting capabilities concerning compliance tracking and incident response. Both tiers offer audit logs, but P2’s detailed and customizable reporting features can be important for organizations that must adhere to strict audit requirements.
For environments requiring higher levels of security and compliance, P2’s Risk-Based Conditional Access adds another layer of protection. This feature allows for more dynamic access controls based on real-time risk assessments, enabling organizations to adapt their security postures to evolving threats.
2. Scalability and Automation for Large Organizations
Scalability and automation are crucial for large organizations managing thousands of users, devices, and applications across complex, often decentralized teams. While both Microsoft Entra ID P1 and P2 address these needs, P2 offers a higher level of sophistication.
Handling large-scale identity systems requires solutions that efficiently support growing numbers of users, devices, and applications. Both P1 and P2 provide robust scaling capabilities, but P2 introduces more advanced automation options, making it ideal for enterprises with complex structures.
Automation minimizes the workload associated with repetitive identity management tasks. P1 and P2 automate user provisioning, de-provisioning, and role assignments, reducing administrative overhead. However, P2 adds entitlement management and dynamic groups for greater flexibility and granular control.
P2 also offers enhanced API integrations and workflow capabilities, allowing for customized automation solutions that integrate with other enterprise systems. This makes P2 especially advantageous for organizations aiming to build sophisticated, tailored workflows, further boosting operational efficiency.
3. Cost Considerations
When comparing Microsoft Entra ID P1 and P2 plans, consider how pricing aligns with organizational needs. Evaluating subscription costs alongside features helps businesses identify which option offers the best value for their identity management requirements.
P1 is more cost-effective and provides essential identity management capabilities. In contrast, P2 includes advanced features like comprehensive lifecycle management and privileged access management, which justifies its higher price. For companies needing core functionality, P1 may be sufficient.
However, P2’s feature set benefits organizations with complex needs. It offers advanced identity governance, risk-based conditional access, and privileged identity management (PIM). These tools improve control, enhance security, and support regulatory compliance, making P2 a necessary investment for some institutions.
However, long-term cost considerations are crucial for larger organizations or those planning to grow. While P1 is initially more affordable, P2’s scalability ensures efficient management of complex identity landscapes. Investing in P2 can help avoid future costs from security incidents or compliance challenges that P1 might not address.
4. Advanced Identity Governance and Access Management
Advanced identity governance is essential for organizations managing large user bases and sensitive data. These systems help control user roles and permissions, ensuring regulatory compliance in highly regulated industries. By managing access, organizations reduce risks of unauthorized access and streamline user lifecycle management.
Microsoft Entra ID P1 offers foundational identity governance features, ideal for organizations seeking basic security. Core features include role-based access control (RBAC), which assigns permissions based on roles, and access reviews to update permissions regularly. These elements support internal security and regulatory compliance.
For organizations needing more, Microsoft Entra ID P2 adds advanced governance capabilities. P2 includes automated workflows for onboarding and offboarding, minimizing manual intervention and human error. It also provides more granular access reviews, allowing refined control over sensitive resources, perfect for complex access environments.
P2’s entitlement management and improved risk monitoring enhance control and compliance. With detailed reporting and audit trails, P2 meets stringent regulations like GDPR and HIPAA. These tools provide a clear view of resource access, helping organizations exceed compliance standards in sectors like healthcare and finance.
5. Risk-Based Conditional Access for Enhanced Security
Risk-based conditional access (RCA) dynamically adjusts access requirements based on real-time risk factors, enhancing security beyond static policies. RCA makes informed security decisions by evaluating each access attempt’s context, including user behavior, device health, and location. This helps organizations apply stricter conditions when risks are higher, reducing friction for legitimate users in low-risk scenarios.
RCA introduces a dynamic layer of protection by assessing login anomalies, ensuring only compliant and secure devices access resources, and flagging sign-ins from high-risk regions. This real-time evaluation enhances control over who can access sensitive resources and under what conditions, reinforcing overall security.
When comparing Entra ID P1 and P2, note that while both offer conditional access, P2 includes advanced risk-based policies. These policies, like user and sign-in risk detection, provide granular control like automatically blocking high-risk users or requiring additional verification, thereby substantially strengthening security.
6. Administrative Ease and User Experience
When choosing between Microsoft Entra ID P1 and P2, consider the complexity of your identity management needs. P1 provides essential features suited for smaller organizations or those with basic access requirements. It offers a straightforward approach to managing users and groups but may require more manual oversight in certain areas.
In contrast, P2 enhances administrative efficiency with advanced features like Identity Protection and Privileged Identity Management (PIM). These tools automate risk-based decisions and privileged access, reducing administrative workload. Identity Protection detects identity-related risks, while PIM enforces just-in-time access, streamlining privileged account management.
P2 improves user experience for administrators by automating policy enforcement and access reviews, minimizing manual intervention. Both Identity Protection and PIM allow IT teams to focus on strategic tasks, enhancing compliance and access management in dynamic environments.
Enhancing Entra ID with a Robust Backup Solution
Implementing a robust backup solution for Microsoft Entra ID is important for ensuring business continuity during identity management failures or data loss. Without a reliable backup, organizations risk significant disruptions that could lead to extended downtime, loss of critical identity information, and potential compliance violations.
When integrating a backup system for Entra ID, several key factors need to be considered:
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Security of the backup data: The backup system must provide encryption for when highly sensitive identity data is at rest or in transit to protect against unauthorized access.
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Backup integrity: Backup solutions should ensure that identity data is stored securely, with consistent and easy restoration available whenever needed.
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Automated backups and frequency: A backup system that allows for automatic, periodic backups can reduce manual intervention and ensure that even recent changes to identity information are preserved.
A robust backup solution complements Entra ID by acting as a safeguard for critical identity data. In case of system failures or breaches, a reliable backup helps organizations quickly restore access, minimizing downtime and operational disruption. This is particularly important for maintaining compliance with regulations that mandate data availability and disaster recovery capabilities.
Need help keeping your identity data safe and sound? Nexetic Backup for Entra ID offers automated, secure backups with built-in encryption and seamless restoration capabilities. Start your free trial today and experience effortless protection!
When to Choose Microsoft Entra ID P1
Microsoft Entra ID P1 is ideal for organizations with basic identity management needs, offering essential security features like Multi-Factor Authentication (MFA), Single Sign-On (SSO), and Conditional Access. This plan is cost-effective and suits smaller businesses or departments seeking reliable, straightforward identity management.
P1 provides foundational security capabilities that support compliance with regulatory standards such as GDPR and HIPAA. However, it lacks advanced identity governance features found in the P2 plan, which are necessary for organizations needing more granular, automated identity management or Privileged Identity Management (PIM).
For companies that prioritize affordability and don’t require advanced features like risk-based conditional access or automated identity processes, Microsoft Entra ID P1 offers a streamlined, efficient solution. It provides core access controls for most small to mid-sized organizations without the expense of unnecessary complexities.
When to Choose Microsoft Entra ID P2
Microsoft Entra ID P2 is ideal for organizations with complex security and compliance needs. While P1 supports general identity management, P2 offers advanced tools like Identity Protection and Privileged Identity Management (PIM). These features help detect identity threats, automate risk responses, and control elevated access with just-in-time (JIT) privileges.
P2’s risk-based Conditional Access enhances security through real-time assessment of login attempts. It flags suspicious behavior—such as unusual login locations or devices—and can require additional authentication or block access. Its enhanced logging and monitoring further support audit trails, essential for companies with strict regulatory requirements.
Scalability is another advantage of P2, especially for global organizations. With automated identity management, P2 efficiently handles access requests, onboarding, and de-provisioning for large, diverse user bases. Additionally, PIM ensures temporary access for sensitive roles, reducing the risk of privilege abuse while continuously monitoring for insider threats.
Entra ID P1 vs. P2: The Final Verdict
Choosing between Microsoft Entra ID P1 and P2 ultimately depends on balancing your organization’s specific security needs, feature requirements, budget constraints, and scalability plans. While P1 is cost-effective for basic identity tasks, P2’s sophisticated features help automate workflows, enforce risk-based policies, and manage privileged access effectively. Carefully assessing your organization’s requirements will help you determine which plan offers the best return on investment.
Protecting your identity data is equally crucial. Nexetic Backup for Entra ID provides automated, encrypted backups for your Entra ID data, ensuring quick, seamless restoration during unexpected disruptions. Start your free trial today or schedule a personalized demo to see how Nexetic can secure your identity management effortlessly!
FAQ
What are the core differences between Microsoft Entra ID P1 and P2?
Microsoft Entra ID P1 and P2 differ primarily in security features: P2 adds Identity Protection and Privileged Identity Management (PIM), offering advanced access controls and risk-based policies for organizations with complex security needs, at a higher cost.
When does it make sense to upgrade from Microsoft Entra ID P1 to P2?
Upgrading to Microsoft Entra ID P2 offers advanced identity protection, risk-based conditional access, and Privileged Identity Management, ideal for organizations needing granular security control, comprehensive identity governance, and enhanced compliance capabilities.
What are the key security features offered in Microsoft Entra ID P2?
Microsoft Entra ID P2 offers advanced security features like Identity Protection, Privileged Identity Management, and Conditional Access, allowing real-time risk detection, access control, and advanced auditing for improved compliance and overall security.
Can I use Microsoft Entra ID P1 for hybrid identity scenarios?
Yes, Microsoft Entra ID P1 can be used for hybrid identity scenarios. It supports core hybrid identity features like single sign-on (SSO) and self-service password reset, making it suitable for organizations that use both on-premises and cloud-based resources.
How does Conditional Access differ between Microsoft Entra ID P1 and P2?
Conditional Access is available in both Entra ID P1 and P2. P1 offers basic policies, while P2 adds advanced risk-based features, enabling real-time risk detection and automated responses for enhanced security.
