The cost of using Azure Active Directory (Azure AD) can vary depending on the specific features and services you use. Azure AD offers several pricing tiers and editions tailored to different needs. Here are some key points to consider when understanding the cost of Azure AD:

1. Azure AD Editions:

   • Azure AD comes in different editions, with varying features and pricing. The primary editions include:
     • Azure AD Free: Provides basic identity and access management capabilities at no cost.
     • Azure AD Premium P1: Offers additional identity protection, self-service password reset, group access management, and more advanced features.
     • Azure AD Premium P2: Includes advanced identity protection, privileged identity management, and additional security and compliance features.

2. Azure AD B2B and B2C:

   • Azure AD Business-to-Business (B2B) and Business-to-Consumer (B2C) are additional features that may have associated costs, depending on usage.

3. User Licensing:

   • Licensing is typically based on the number of users who need access to Azure AD Premium features. Each user requiring Premium P1 or P2 features will need an appropriate license.

4. Authentication Methods:

   • The use of advanced authentication methods, such as Azure Multi-Factor Authentication (MFA), may incur additional costs.

5. Azure AD Application Proxy:

   • If you use Azure AD Application Proxy to publish on-premises applications securely, there may be costs associated with data transfer and usage.

6. Azure AD External Identities:

   • If you use Azure AD to manage identities for external users (e.g., partners, customers), there may be costs associated with External Identities.

7. Azure AD Domain Services:

   • If you use Azure AD Domain Services to extend your on-premises Active Directory to Azure, there are associated costs.

8. Azure AD Identity Protection:

   • Azure AD Identity Protection may have additional licensing costs for advanced risk-based conditional access and identity protection features.

9. Azure AD Privileged Identity Management (PIM):

   • Azure AD PIM is included with Azure AD Premium P2 but may have additional costs for Azure AD Premium P1 users.

10. Monitoring and Logging:

    • Depending on your logging and monitoring requirements, there may be additional costs for using Azure Monitor and Azure Log Analytics.

11. Data Transfer and Storage:

    • Data transfer and storage costs may apply if you use Azure AD for certain scenarios, such as Azure AD Application Proxy or External Identities.

12. Pricing Calculator:

    • Microsoft provides an Azure Pricing Calculator that allows you to estimate the cost of using Azure AD based on your specific usage and requirements.