Azure AD to Entra ID migration cost and implement services in India

Modern IT infrastructure has made identity security one of its most critical components. With the rapid growth in the use of cloud applications, remote work, and hybrid systems, businesses need an identity management platform they can trust to keep users and company information secure. 

Microsoft has recently released a new identity management system to replace Azure Active Directory (AD). The new platform, Microsoft Entra ID, retains the same core identity service but offers stronger governance, improved access security, and better integration with common cloud environments. 

Some businesses in India that currently use either Azure AD or on-premises AD are preparing to migrate to the new Microsoft Entra ID to enhance security and simplify authentication across all their applications. 

But before they begin their migration to Microsoft Entra ID, organisations typically want information on the costs involved in migrating from Azure AD to Entra ID, including licensing costs and details of any implementation assistance available from Microsoft in India. 

What is Microsoft Entra ID? 

Microsoft Entra ID is an IAM (Identity and Access Management) system, developed by Microsoft as a cloud service using Microsoft Azure. Microsoft Entra ID is designed to provide organisations with an identity management solution for their cloud applications and on-premises applications. Microsoft Entra ID was originally known to users as Azure Active Directory, and today it is represented as the core identity platform within Microsoft Entra (which includes identity governance, access management, and security tools). 

Microsoft Entra IDs are used in organisations to manage employee identity, implement authentication policies, and manage access to Microsoft 365, Azure, SaaS applications, and on-premises enterprise systems. 

Key capabilities of Microsoft Entra ID include SSO, MFA, Conditional Access Policies (CAP), and Identity Protection. 

Why Organisations Are Migrating from Azure AD to Entra ID 

Several businesses in India are switching to Entra ID to enhance their identity security and upgrade their access management systems.  

One significant factor driving this trend is the growing adoption of zero-trust security architectures. Rather than automatically trusting users because they are physically inside the corporate network, zero trust verifies every access request. Verification is based on user identity authenticity, device status and physical geographic location. 

Entra ID supports the zero-trust identity verification model through its built-in security features.  

Additionally, businesses today are using more cloud applications than ever before. They rely on applications such as Microsoft 365 and Salesforce to operate their business and use multiple Software-as-a-Service (SaaS) solutions to meet their technology needs. Organisations can use a single identity provider (Entra ID) to manage all single sign-on (SSO) capabilities across their cloud application vendors. 

Another benefit of using Entra ID is that it automates identity governance processes, including user provisioning, access approvals, and periodic access reviews. 

Microsoft Entra ID Licensing Cost 

Before determining migration costs, organisations must first understand how Entra ID licenses are structured. 

Microsoft provides licenses in tiers based on the level of security and identity features needed. 

1. The free version (Entra ID Free) is included with an Azure and Microsoft 365 subscription. The Entra ID Free version provides basic identity management and authentication features and is best used for smaller networks. 

2. The Entra ID Premium P1 license provides advanced identity features, including conditional access policies, hybrid identity support, and self-service password reset. The estimated cost of this license in India is approximately ₹500 per user per month. 

3. The Entra ID Premium P2 license provides richer identity-related services than the Premium P1 license, including identity protection, privileged identity management, and risk-based authentication. The estimated cost of this license in India is approximately ₹750 per user per month. 

Organisations seeking a comprehensive identity security ecosystem may also consider the Microsoft Entra Suite, which combines multiple identity services into a single subscription. 

The total licensing cost is influenced by both the number of users needing licenses and what features the organisation requires. 

Azure AD to Entra ID Migration Cost in India 

The cost of migration will depend on the number of users in your organisation, the complexity of your infrastructure, and the level of security required. 

1. If you are a small business with less than 200 total users, your migration costs should range from ₹2 lakhs to ₹8 lakhs. 

2. If you are a medium-sized business with 200–1000 total users, your migration costs should range between ₹8 lakhs to ₹25 lakhs. 

3. If you are a large enterprise that has thousands of users, many Active Directory forests and has many applications that are integrated within your organisation, you can expect to pay ₹25 lakhs to ₹1 crore (or more) for your migration services and implementation. 

Migration cost estimates include the following steps: identity assessment, migration planning, tenant configuration, directory integration/synchronisation, application integration, security configuration, user testing, and training. 

Key Factors That Influence Migration Cost 

Many technical and operational factors influence the overall cost related to Entra ID Migration. 

1. The first factor is the current state of the identity infrastructure. Companies that operate across multiple Active Directory domains and/or use legacy authentication face more complex migration processes and more configuration steps than companies with simpler identity infrastructures. 

2. Another factor that significantly affects total cost is the number of applications that require identity integration within the enterprise environment. Each enterprise application requires configuration to use secure authentication protocols, such as SAML, OAuth, or OpenID Connect. 

3. Security requirements also influence the cost of migration. Companies seeking advanced security capabilities such as conditional access policies, privileged identity management, and identity protection will incur additional configuration and testing costs before they can migrate. 

4. Hybrid identity environments also introduce additional complexity to the migration. Many organisations operate in a Hybrid environment with an on-premises Active Directory and cloud identity services; therefore, they need an Entra Connect server deployed to synchronise user accounts between the on-premises and cloud environments. 

Compliance requirements would also affect the overall cost of migrating to Entra ID; companies in regulated industries may need to factor in additional governance, auditing, logging, and identity monitoring. 

Azure AD to Entra ID Implementation Services in India 

1. To achieve success with Entra ID, organisations typically partner with a Microsoft partner or engage a cloud consultancy. The first step of the implementation service is to conduct a comprehensive identity assessment. This involves engaging consulting resources to analyse the existing infrastructure, security policy, and identity management strategy. 

2. After the assessment phase, experts create a migration roadmap to help your company minimise impact on your operations whilst migrating to the new platform. 

3. The next step is tenant configuration and hybrid identity setup, which includes configuring sync tools (such as Microsoft Entra Connect) to synchronise user accounts between your on-premises Active Directory and your cloud platform. 

4. In addition, consulting firms will also assist organisations by integrating enterprise applications with Entra ID to enable secure authentication and single sign-on. 

5. Another crucial area of the implementation process is security configuration, where experts configure conditional access policies, implement Multi-Factor Authentication (MFA) for users, and enable Identity Protection features. 

6. After completing the migration, organisations will receive documentation, training sessions, and monitoring tools to support their identity platform. 

Benefits of Microsoft Entra ID for Businesses 

Organisations that migrate their identity platform to Entra ID will benefit from a variety of long-term advantages. 

1. Among these are enhanced security through stronger identity protection, including risk-based authentication, and the detection of suspicious login attempts to block unauthorised access. 

2. In addition, with a single sign-on for all enterprise apps, employees can access all their apps with a single set of credentials, increasing productivity and reducing password fatigue. 

3. Entra ID is designed to scale with cloud capabilities, allowing companies to grow their user base and applications without expensive or complicated infrastructure. 

4. With the automation of identity governance functions for user access reviews, approvals, and compliance reporting, Entra ID is an incredible identity platform for today’s enterprise. 

Conclusion 

Migrating from Azure Active Directory to Entra ID will be part of many organisations' journey toward transforming their identity and access management (IAM) environment. Because of the increased number of people working in a hybrid workplace, the number of cloud-based applications, and the increase in cyber threats, companies need better identity security and centralised access management capabilities. 

The cost to complete the migration to Entra ID will vary depending on the number of users, the complexity of the existing infrastructure, and the security model in place. However, Entra ID provides long-term financial benefits, and therefore, it is an investment of value. 

By engaging experienced cloud-based consultants and adopting recommended practices, organisations in India can effectively migrate to Microsoft Entra ID and build a future-proof, secure identity framework. 

FAQs 

1. What is the difference between Azure AD and Entra ID? 

Azure Active Directory has been rebranded as Microsoft Entra ID. The core identity service remains the same but is now part of the larger Microsoft Entra identity and security ecosystem. 

2. How long does Entra ID migration take? 

For small organisations, migration may take a few weeks. Large enterprises with complex infrastructure may require several months for full migration. 

3. Is Azure AD automatically upgraded to Entra ID? 

Yes, Microsoft automatically transitioned Azure AD to Microsoft Entra ID branding. However, organisations may still need to upgrade configurations and security policies. 

4. Do businesses need new licenses for Entra ID? 

Some features are included in Microsoft 365 subscriptions, but advanced identity security features require Premium licenses. 

5. Is Entra ID suitable for small businesses? 

Yes, Entra ID offers a free tier and scalable pricing, making it suitable for businesses of all sizes.