Managing tenant ownership in Microsoft Entra has always been critical for IT administrators. Yet, many organizations have faced challenges when trying to answer a simple but important question: “Who actually owns this tenant?”
This lack of visibility becomes a real issue when:
- Administrative access is lost.
- IT teams change, and ownership records are unclear.
- Multiple tenants exist across billing accounts without a clear inventory.
Until now, there wasn’t a seamless, standardized way to link tenant ownership directly to a billing account.
Microsoft has listened and now, they’re addressing this gap with the rollout of the new Microsoft Entra ID Free subscription. 🎉 Let’s explore what’s this plan, when is this rolling out, and what features can you expect? Let’s dive in! 🚀
Overview of the Microsoft Entra ID Free Subscription
The Microsoft Entra ID Free plan is a zero-cost, cloud-based identity management solution. Introduced as part of a security future initiative, this subscription works like an inventory for new tenants, automatically tracking all tenants created with the same billing account. It is included with your Azure billing under the Microsoft Customer Agreement (MCA) at no additional cost.
This free subscription is especially helpful if a tenant dispute arises or if you ever lose administrative access. It serves as a proof for the owner of the tenant and helps regain admin rights when needed.
In addition, it allows the billing account user to perform limited management and reporting actions in your Microsoft 365 tenants.
When is the rollout scheduled?
📆 Microsoft Entra ID Free will become generally available starting mid-October 2025, with a phased rollout. So, admins! Keep an eye on your tenants and make sure to take advantage of this plan once it becomes available. 👀
How to Check if Microsoft Entra ID Free is Applied to Your Tenant?
In your Microsoft 365 tenant, this plan will be automatically added once it has been rolled out. To check this out, you can use the following methods:
Using Microsoft 365 Admin Center
- Sign in to the Microsoft 365 admin center.
- Go to Billing → Your Products.
- Look for Microsoft Entra ID Free in the list.
Using Microsoft Entra Admin Center
- Sign in to the Microsoft Entra admin center.
- Navigate to Billing → Licenses → All Products.
- Check for the Microsoft Entra ID Free license here.
Note: You can also check this in Azure Portal under Cost Management + Billing → Cost Management → Billing → Azure Subscriptions.
What Services Do Microsoft Entra ID Free Offer?
Once the billing enters, Entra ID Free provides automatic access to the following features at zero cost.
Feature | What It Does? |
User and group management | Create, remove, and update users and groups within your tenant, and manage their permissions across Microsoft services. |
On-premises directory synchronization | Keep your on-premises Active Directory and Microsoft Entra ID in sync, so that users can access resources seamlessly without separate accounts. |
Basic reporting | Provides essential insights that help admins track user activity and manage the tenant effectively. |
Self-service password reset for cloud users | Allows users to securely resets their own passwords without IT or helpdesk assistance. |
Single sign-on (SSO) | Allows users to access multiple applications across Microsoft 365, Azure and SaaS apps with a single sign in. |
Things You Must Keep in Mind!
- Impact of Microsoft Entra ID Free – This subscription has zero impact on your billing and the existing Microsoft 365 functionality.
- Credit card verification required – Although this plan is completely free, you must provide a credit card for identity verification during setup.
- No cancellation or modification – You can’t modify, delete, or cancel Free Microsoft Entra ID subscription plan while your license is active.
- No upgrades to paid plans – Free Microsoft Entra ID licenses cannot be upgraded to paid plans such as Microsoft Entra ID P1, P2, or Entra Suite. If you need a paid plan, you must purchase it separately.
- No user-level assignment or transfer – The free features are enabled tenant-wide. So, they cannot be transferred to anyone, as they remain tied to your billing account.
- Closing your Azure billing account – If you ever decide to close your Azure billing account, you can’t do it directly. Instead, submit a support request through the Azure portal, and Microsoft’s support team will process the closure for you.
Overall, Microsoft’s move to provide these core features for free is a big win for businesses of all sizes. This free plan is a great way to secure your M365 tenant while enjoying essential identity management features without extra charges. Feel free to drop your thoughts or questions in the comments and stay tuned for more updates.