AAD B2C Licensing

The licensing model for Azure Active Directory (AAD) Business to Consumer (B2C) recently changed, and organizations should familiarize themselves with the new monthly active user (MAU) model, a model now shared with AAD Business to Business (B2B).

Old Licensing Model

Under the original model, AAD B2C was free for up to 50,000 users and 50,000 authentications per month, with incremental charges per month for storage and authentication of each additional identity that was stored.

New Licensing Model

Microsoft now refers to AAD B2B and AAD B2C collectively as Azure AD External Identities, and the two services are licensed using the same model, with pricing based on MAUs.

The organization must specify the tier of features licensed for their entire AAD B2C tenancy. There is no charge for the first 50,000 MAUs, even if using AAD Premium P1 or P2 features.

Beyond 50,000 MAUs, the pricing tier that applies to each additional B2C user is based on the tier of service chosen by the organization:

If the organization is using AAD Premium P1 features, such as conditional access policies based on location, accessing application, and user/group conditional access policies based on location, accessing application, or user/group, the AAD Premium P1 pricing model applies. This model is priced at US$0.00325 per MAU beyond the 50,000 free user count. (For example, each additional 100 MAUs will cost US$0.325 per month.)