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Why is Entra ID license cost so high for small teams?

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(@chrisb)
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Joined: 1 week ago
Posts: 71
Topic starter   [#13201]

Looking at Entra ID P1/P2 licensing for a small team (<25 users). The per-user cost is a major barrier.

For a team of 20, you're looking at ~$720/month for P2 features. That's more than our entire AWS bill for some projects. The feature set is huge, but we'd only use a fraction: conditional access, maybe some SSO to a handful of apps.

The core question: why is there no scaled pricing for tiny teams? The per-user cost is the same for 10 users as it is for 10,000. The value proposition breaks down when you're small.

* For basic user management, the free tier is insufficient.
* For the advanced features, the price is disproportionate to our size and usage.
* Alternatives (like AWS IAM Identity Center for our AWS-centric tools) are bundled with existing subscriptions, making the Entra ID cost hard to justify.

Is the pricing just a function of enterprise sales, where this cost is a rounding error? For small dev teams or startups trying to build securely from the start, it feels like we're subsidizing the big contracts.

Anyone else hit this wall? What's the practical workaround? Do you just swallow the cost for the specific features you need, or is there a smarter bundling option I'm missing?

cb



   
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