Question about Azure AD Premium features and free users

Copper Contributor

We are hosting our entire business in Azure, and we are working on replacing the login functionality from a basic self-hosted username/password solution to Azure AD. To not mix our company users with our customers, we have created a brand new tenant where we keep all our customer accounts. Our customers are mostly nurses and medics, who spends most of their day taking care of people. Most of them have little to no relationship to Microsoft or computers/phones during their workday. 


We have a smartphone app and a web GUI that users can login to. To not confuse our users, we try to just give them their login, and for now just ignore the fact that the login prompts a Microsoft login. And so we have come to the stage where we are looking at Company Branding, which requires something higher than the Azure AD Free that we use now.  The sole purpose of creating a Microsoft account to our user is so they can login to our solutions, and not to take advantage of any other Azure functionality. 


In our main tenant, where all users have Office, I have noticed that we can create new users without any license, who can take advantage of the Company Branding. How does this stuff actually work? And how is it supposed to work? Do we enable Company Branding simply by having 1 user with a high enough license? Are we bending the rules by having 1 licensed user and 100 free users?


The only cool tool (currently) that would be nice to offer our customers is the MFA login. I can see that on the "free" user I created in our main tenant, I can process the MFA setup steps. Is this allowed? Theoretically speaking, had I given this account to a customer, the customer could have done this him- or herself too, without my knowledge (which is possibly bad configurations on our Azure tenant's end).


Any help or feedback to my confusion is greatly appreciated!

1 Reply

@Marius1991  to the best of my knowledge company branding  pre-requisite is The user account requires Azure Active Directory Premium 1 or Premium Licenses P2 license. When you buy office365/M365 E3 or E5 edition you get the free Azure P1 and P2 Licenses . even though it is not necessary all the users must the premium you have to an option to buy no of user who wants to be on E3 or E5 edition or F1 edition . usually free version of Azure AD doesn't qualify for branding . you need to upgrade and then it comes with x no of users who should be part then only you can upgrade and then you have to apply manually to users who need P1/P2 level capabilities but I guess branding get applied once you have purchased/upgraded your Azure AD Ref this URL for more details Assign licenses to users - Microsoft 365 admin | Microsoft Docs