LICENSING, ADOPTION, AND BUSINESS VALUE
Tracking license assignment
Ironically, fully utilizing AUs requires additional licenses. Using AUs requires a Microsoft Entra ID P1 license for each AU administrator. In addition, if using rules for dynamic membership groups for AUs, each AU member requires a Microsoft Entra ID P1 license. If you are part of a large or complex organization, or if you want hierarchical administrative capabilities, you will likely require a third-party administration tool. Flat structure: AUs cannot be nested, preventing the creation of hierarchical administrative models that mirror complex organizational structures. ▪
For the most part, Microsoft administrative tools support a centralized license management capability. Ideally, local license administrators could manage pools of licenses, assigning and revoking them based on the immediate needs of end users in a standardized and simple manner. While Microsoft supports Administrative Units (AUs) in Microsoft Entra ID (formerly Azure AD), which can play a part in license management, AUs are designed primarily for scoping administrative roles to a smaller subset of users and groups. When it comes to license management in the Microsoft 365 Admin Center, there are several notable limitations: No direct license assignment : AUs cannot be assigned licenses directly. Management is indirect, relying on adding users to licensed groups or individually licensing each user. ▪ Clunky workflow : The process is inefficient. Admins must manage group memberships to assign licenses rather than managing licenses for users within their scope. ▪ Limited reporting : Delegated admins have a restricted view, making it difficult to track overall license availability and usage beyond their specific AU. ▪ Incomplete user control : An AU admin can add a user to a licensed group but may lack other necessary user management permissions (like password resets) if the user isn't also scoped to their AU. ▪
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