Microsoft Entra license management

What it is

License management assigns, removes, and audits Microsoft product licenses and service plans for Entra users. A license determines whether a user can use a licensed Microsoft service; it is not an Azure RBAC role.

Why it exists

Organizations need users to receive the correct capabilities without manually configuring each service, while avoiding licenses assigned to departed or ineligible users.

Key ideas

  • Assign licenses directly to a user or through a group. Group-based licensing scales better when membership represents a job function.
  • A license may contain individual service plans. Disable only a plan that the user should not receive; do not confuse that with removing Azure resource permission.
  • Check assignment errors and available capacity. A group assignment can fail for a particular user because of location, conflicting plans, or insufficient licenses.
  • Offboarding normally combines identity changes, license removal, and access removal. These are separate operations with separate effects.

Exam decision

Use an Entra license assignment to grant a Microsoft 365/Entra service entitlement. Use Azure RBAC to grant access to an Azure subscription, resource group, or resource.

entraid · user-account · groups · rbac

Source: Assign or remove licenses in Microsoft Entra ID