Essential Insights
Microsoft Entra ID P2 enhances identity security with AI-driven risk detection, Privileged Identity Management (PIM), and conditional access policies.
It automates identity governance through access reviews, risk-based authentication, and detailed audit logs, ensuring compliance with regulations like GDPR and HIPAA.
Unlike P1, P2 includes advanced protection features such as real-time risk mitigation and privileged access control to minimize insider threats and account takeovers.
Entra ID P2 lacks built-in backup and recovery, requiring businesses to implement third-party solutions to prevent permanent identity data loss.
Choosing the right identity management solution is critical for security, compliance, and efficiency. Microsoft Entra ID offers different plans, but understanding what sets its second premium tier (P2) apart is key for businesses making strategic IT decisions. With advanced security, automation, and governance capabilities, Entra ID P2 goes beyond basic identity management.
This article explores Entra ID P2’s key features and how they benefit enterprise IT environments.
A Deep Dive Into Microsoft Entra ID’s Role in Identity Management
Modern enterprises need a robust identity and access management (IAM) system to secure their digital environments. Microsoft Entra ID, formerly Azure Active Directory (Azure AD), provides a cloud-based IAM solution that integrates authentication, authorization, and identity protection across Microsoft 365, Azure, and third-party applications. It ensures that users access only the resources they are authorized for while maintaining compliance with enterprise security policies.
IAM is pivotal in protecting corporate systems and data from unauthorized access. Without strict identity controls, businesses face increased risks of data breaches, insider threats, and compliance violations. A well-implemented IAM strategy allows organizations to:
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Enforce secure authentication through multi-factor authentication (MFA) and passwordless login options.
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Control access with role-based access control (RBAC) and conditional access policies.
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Streamline identity governance by automating user provisioning, deprovisioning, and access reviews.
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Meet regulatory requirements such as the General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPAA), and ISO 27001 through detailed audit logs and identity protection mechanisms.
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Enhance workforce productivity by enabling seamless single sign-on (SSO) across cloud and on-premises applications.
Entra ID strengthens security by incorporating zero-trust principles, where authentication and authorization occur at every access request. It uses risk-based authentication to assess login attempts based on signals like user behavior, location, and device health. AI-powered identity protection detects anomalies, such as impossible travel scenarios or leaked credentials, and takes automated actions to mitigate threats.
Entra ID offers Privileged Identity Management (PIM) for privileged accounts, ensuring that high-risk roles only receive elevated access when necessary. This granular control reduces the attack surface and limits exposure to insider threats. Additionally, compliance-driven access audits and reporting help organizations maintain accountability and track identity-related risks over time.
Comparing Microsoft Entra ID Plans: Free vs. P1 vs. P2
Microsoft Entra ID offers three distinct plans—Free, P1, and P2—each designed to meet different levels of identity and access management needs. While the Free plan covers fundamental IAM capabilities, P1 and P2 introduce progressively advanced security, governance, and automation features. Understanding these differences is important for determining the right plan for your organization’s security and compliance requirements.
The Free plan provides essential identity services, including single sign-on (SSO), basic user and group management, and limited security controls. However, it lacks the advanced access policies and security intelligence needed for modern enterprise environments.
The P1 plan builds on the Free tier by introducing conditional access, hybrid identity support, and group-based access control. With dynamic groups and self-service password reset, P1 improves administrative efficiency while enforcing security policies based on user context. However, it does not include advanced identity protection or privileged access management.
The P2 plan extends P1’s capabilities by adding AI-driven Identity Protection, Privileged Identity Management (PIM), and advanced governance controls. It enables real-time risk detection, automated remediation, and access reviews, helping organizations maintain security and compliance at scale.
Some key differences between the three plans are listed in the table below:
|
S/N |
FREE |
P1 |
P2 |
|
|
1 |
Identity Security |
Basic identity protection with no risk-based access control. |
Conditional access policies based on user risk, location, and device. |
AI-driven Identity Protection that detects and mitigates compromised accounts. |
|
2 |
Access Management & Governance |
Limited user and group management capabilities. |
Dynamic groups, self-service password reset, and role-based access control. |
Privileged Identity Management (PIM) to monitor and secure privileged accounts. |
|
3 |
Compliance & Risk Mitigation |
No dedicated compliance features. |
Basic reporting and monitoring for security and regulatory needs. |
Access reviews, audit logs, and risk-based authentication for stricter compliance. |
|
4 |
Automation & Efficiency |
Manual administrative workload. |
Automated user provisioning and policy enforcement. |
Machine learning-based risk assessments and identity governance workflows. |
Organizations opt for Entra ID P2 when they require comprehensive security, regulatory compliance, and automated identity governance. Its AI-driven risk detection minimizes account takeovers, while privileged access controls prevent insider threats. For enterprises handling sensitive data, P2 provides scalable identity management with advanced security automation.
Key Features and Business Benefits of Entra ID P2
Entra ID P2 delivers advanced identity protection and access management, enabling enterprises to improve security, maintain compliance, and improve operational efficiency. Its AI-driven risk detection, privileged access controls, and automated governance tools help mitigate threats while ensuring seamless user experiences.
Entra ID P2’s Identity Protection utilizes AI and machine learning to detect suspicious sign-ins and compromised accounts. It categorizes risks into low, medium, or high, allowing administrators to enforce appropriate responses. High-risk logins can trigger conditional access policies that require additional authentication or block access entirely. Detailed risk reports provide insights into attack patterns, reducing the chances of phishing, brute force, and password spray attacks.
Privileged Identity Management (PIM) restricts standing administrative privileges, minimizing the attack surface. Users have to request just-in-time (JIT) access, ensuring administrative rights are only granted when needed. Approval workflows add an extra layer of oversight, while audit logs and alerts improve accountability. Time-bound access with automatic expiration further limits exposure to potential threats.
With Conditional Access Policies, you can enforce multi-factor authentication (MFA) based on various risk signals. Policies can block access or impose restrictions based on device type, location, application, and user risk score. This supports a Zero-Trust security model for identity verification before granting resource access. Integration with Microsoft Defender for Identity correlates identity risks with broader security threats, improving threat response.
Access Reviews streamline user access management and compliance efforts. Automated workflows notify managers or IT admins to review permissions, ensuring only necessary access is retained. This process flags inactive or redundant accounts, reducing identity sprawl and insider threats. It also supports regulatory compliance by maintaining access governance and audit trails.
Beyond security, Entra ID P2 offers key business benefits:
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Enhanced Security: AI-driven risk detection, PIM, and conditional access reduce identity-based threats.
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Regulatory Compliance: Supports GDPR, ISO 27001, HIPAA, and other industry standards.
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Operational Efficiency: Automates identity and access management, reducing IT overhead.
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Scalability: Adapts to enterprise growth, supporting cloud and hybrid environments.
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Cost Reduction: Minimizes security incidents, lowering long-term security costs.
Entra ID P2 strengthens enterprise security by reducing unnecessary access, automating risk-based policies, and improving compliance oversight.
Addressing Entra ID P2’s Limitations and the Need for Backup Solutions
Microsoft Entra ID P2 provides advanced identity management and security features but lacks built-in backup and recovery. This exposes organizations to risks such as accidental deletions, malicious attacks, and compliance challenges. Without a dedicated backup solution, lost identity data may become permanently unrecoverable after the retention period expires.
Deleted user accounts, groups, and configurations cannot be restored beyond the limited retention window on Entra ID. The platform also lacks granular restore options, requiring administrators to recover entire directories instead of specific objects. This can lead to unnecessary disruptions, configuration inconsistencies, and increased security risks.
To mitigate these risks, enterprises should use third-party backup solutions that extend Entra ID P2’s capabilities. These solutions provide long-term data retention to meet regulatory requirements such as GDPR, HIPAA, and SOC 2. They also protect against ransomware, insider threats, and misconfigurations, ensuring fast recovery from security incidents.
One such solution is Nexetic Backup for Entra ID, which provides easy setup, automated backups, secure storage, and granular restore options to prevent permanent data loss. Businesses looking for a seamless way to protect their identity data can start a free trial to experience this powerful tool first-hand.
When selecting a backup solution, businesses should prioritize automated and scheduled backups, precise restore options, and secure, encrypted storage. Solutions must also support extended data retention, detailed audit logs, and an emergency mode to restrict access during security incidents. These features help maintain business continuity and regulatory compliance.
Without a dedicated backup strategy, organizations face permanent data loss and operational disruptions. Integrating a third-party backup solution strengthens security, compliance, and disaster recovery readiness, ensuring seamless identity management.
Beyond Entra ID P2: Ensuring Identity Data Resilience and Security
Entra ID P2 provides robust security, compliance, and identity governance tools, but no system is foolproof. Without a dedicated backup strategy, organizations risk losing critical identity data due to accidental deletions, cyber threats, or retention policy limitations. Businesses that rely on Entra ID P2 need a proactive approach to ensure data resilience and long-term security.
Nexetic Backup for Entra ID fills this gap by offering automated backups, secure storage, and quick recovery options. It complements Entra ID P2 by providing continuous data protection and regulatory compliance. Investing in a backup solution not only mitigates risks but also ensures business continuity when identity-related incidents occur.
Don’t wait until data loss becomes a costly problem. Start your free trial today or book a consultation to secure your Entra ID data with confidence.
FAQ
What is Entra ID P2?
Entra ID P2 is an identity and access management solution that enhances security with AI-driven risk detection, privileged access control, and automated identity governance. It includes Identity Protection, Privileged Identity Management (PIM), and access reviews to help businesses secure user access and meet compliance requirements.
How does Entra ID P2 differ from P1?
Entra ID P2 builds on P1 by adding AI-powered risk detection, automated threat mitigation, and Privileged Identity Management (PIM). It offers advanced access governance, including access reviews and risk-based conditional access, making it suitable for organizations that need stronger identity protection and compliance controls.
What are the benefits of Entra ID P2 for businesses?
Entra ID P2 improves security by detecting identity risks in real-time, automates compliance with access reviews, and enhances efficiency through identity governance. It helps reduce the risk of unauthorized access, supports regulatory requirements, and streamlines identity management with automation.
Does Entra ID P2 include built-in backup and recovery?
No, Entra ID P2 does not offer built-in backup and recovery. Deleted users, groups, and configurations are only recoverable within a limited retention period. Businesses should use external backup solutions to ensure long-term data retention and full restoration of identity data.
Why do businesses need third-party backup solutions for Entra ID P2?
Third-party backup solutions provide automated backups, granular restore options, and secure storage. They help protect identity data from accidental deletions, cyber threats, and compliance risks. Without a backup solution, businesses risk permanent data loss and disruptions in identity management.
