Microsoft paid cloud services, such as Microsoft 365, Enterprise Mobility + Security, Dynamics 365, and other similar products, require licenses. These licenses are assigned to each user who needs access to these services. To manage licenses, administrators use one of the management portals (Office or Azure) and PowerShell cmdlets. Microsoft Entra ID is the underlying infrastructure that supports identity management for all Microsoft cloud services. Microsoft Entra ID stores information about license assignment states for users.
Until now, licenses could only be assigned at the individual user level, which can make large-scale management difficult. For example, to add or remove user licenses based on organizational changes, such as users joining or leaving the organization or a department, an administrator often must write a complex PowerShell script. This script makes individual calls to the cloud service.
To address those challenges, Microsoft Entra ID now includes group-based licensing. You can assign one or more product licenses to a group. Microsoft Entra ID ensures that the licenses are assigned to all members of the group. Any new members who join the group are assigned the appropriate licenses. When they leave the group, those licenses are removed. This licensing management eliminates the need for automating license management via PowerShell to reflect changes in the organization and departmental structure on a per-user basis.
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