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Azure B2B guest users licensing question

Copper Contributor



I am working on Azure B2B in order to add guest users in my Azure AD tenant.

I am wondering how to know the following information?


The document explains:


"B2B guest user licensing is automatically calculated and reported based on the 1:5 ratio. Additionally, guest users can use free Azure AD features with no additional licensing requirements. Guest users have access to free Azure AD features even if you don’t have any paid Azure AD licenses."


As reported here:, my guest users use only free Azure AD features, such as:

  • User provisioning
  • User and group management (add/update/delete)


So my question is, the 1:5 ratio is also applied for free Azure AD features? Am I subject to this ratio even if guest users use free AAD features?


Can I see somewhere on the portal if I exceed this limit?


Thank you.







5 Replies

Hi @Nico_P ,


No the 1:5 only applies to features which require paid licences.  Anything that is free does not fall under this rule.

Thank you Paul for your answer!


@Paul Turner 

Can i aske a similar question with a twist.   I have B2B External users also.  Howerver they authenticate externally (of course, they are external) in thier local M365 enviroment.   On my side , thier External user accounts I have converted thier UserType from "guest" to "member".  (for a variety of good and useful reasons... think M&A integration )   


In otherwords in my M365 tenent theyt are External-Member (as apposed to External-Guest).  My qestion then is, is thier M365 license (from where they came) recognized on my side (as External-Members in my tenant).  e.g. do they bring that with them thier license  when B2B-ing into my tenent).   Or perhaps since they are External- "Members" ,  i need to assign my licences (if and as required) ?

+1 Following post

@stewartgscott and @MaheshMarthi 

 I am not sure if you ever got an answer on this one/


But to answer in short, a license can only license features in ONE tenant, so it does not travel with the user.


That said there are three scenarios to have in mind:


1. The user need access to O365 features om behalf of the company - that will require a license

2. The user uses AD P1 or P2 features like PIM - that do, not need license for the first 50.000 GUESTS in a B2B relation

3. The user is invited in to a Team or Sharepoint site - then his current license is used in the parent tenant


In between there are some “grey” areas of cause - but the above is covering 95% of all use cases.