Cost for Microsoft Entra ID Setup in Active Directory in India
Get complete Microsoft Entra ID (formerly Azure AD) setup and integration services for Active Directory in India. Pricing depends on user count, licensing (P1/P2), hybrid AD configuration, security policies, MFA, and deployment complexity.
13
May
Cost for Microsoft Entra ID Setup in Active Directory in India
Table of Contents
Identity and access management is now seen as a vital element of contemporary IT. Due to the rapid changeover to hybrid cloud environments, many organisations are incorporating their existing Active Directory (AD) environments into Microsoft Entra ID (previously known as Azure Active Directory) to manage their identities securely and effectively across both cloud and on-premises environments.
When planning your identity solution, one of the most common questions you may have is - "What is the cost of establishing Microsoft Entra ID with Active Directory in India?"
The answer will vary depending on reasons like licensing, how complex the implementation is, how many users you have, and whether or not you will require professional services.
Understanding Microsoft Entra ID and Active Directory Integration
Microsoft Entra ID is a Microsoft public cloud Identity and Access Management (IAM) system that allows organisations to control access based on users of applications, devices, and information. Entra ID provides key functionality, including Single Sign-On (SSO), Multi-Factor Authentication (MFA), Conditional Access, and Identity Governance.
Traditional Active Directory (AD) is most commonly deployed as an on-premises product, while Entra ID is a public cloud-based solution. When deployed together with Entra Connect (formerly Azure AD Connect), companies can use a combination of both AD and Entra ID to provide users with a seamless authentication experience in each environment.
Entra ID Licensing Cost in India
Licensing is the main component of all Entra ID implementations. Microsoft has multiple licensing levels based on your security and governance needs.
1. Microsoft Entra ID Free
This is built into many of the Microsoft cloud services to provide fundamental identity management capabilities, basic user authentication, and limited Single Sign-On functionality. If you’re a small business on Microsoft 365 or Azure, this should be available to you at zero additional cost.
2. Microsoft Entra ID Premium P1
There are lots of enterprise identity features, hybrid identity management, advanced group management, and conditional access for enterprises that require stronger security policies.
In India, Entra ID Premium P1 costs approximately ₹500/user/month with annual billing. This level is typically used by mid-sized companies that require additional identity control and security policy enforcement.
3. Microsoft Entra ID Premium P2
Additional advanced identity protection, risk-based user authentication, and privileged identity management are included in the Premium P2 subscription license.
The price for the P2 license works out to be about ₹750/user/month in India. P2 licensing is primarily for enterprise customers who have strict regulatory compliance and security needs.
Implementation Cost for Entra ID Setup in India
In addition to licensing fees, businesses commonly face consulting or implementation costs to install and configure Entra ID along with Active Directory.
Commonly included in the setup are:
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1. AD health check
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2. Installation of Entra Connect
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3. Hybrid Identity configuration
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4. Single Sign-On setup
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5. Configuration of conditional access policies
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6. Deployment of Multi-Factor Authentication
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7. Application integration and access control.
In India, IT consulting firms typically charge for the services they provide based on the complexity of each individual project.
Estimates for costs related to implementation include the following:
1. Small Business (50-100 Users) - ₹50,000 - ₹150,000
2. Medium Organisation (100-500 Users) – ₹150,000 - ₹500,000
3. Enterprise Deployment (> 500 Users) - ₹500,000 - ₹2,000,000
As companies grow, there may be additional costs associated with services such as Identity Governance, Privileged Access Management, and security auditing.
Additional Costs to Consider
When determining the entire Entra ID setup cost in India, organisations will also need to account for various other costs related to the deployed environment.
Azure Infrastructure Costs
If some of the cloud services deployed include Azure-based virtual machines or solutions that incur additional usage fees (based on the consumption within Azure), then more Azure usage fees may be incurred.
Identity Governance Add-ons
Advanced identity governance capabilities through Entra ID will incur an additional charge of ₹600-₹700 monthly for every user, depending on the advanced level of capabilities required.
Security Integrations
In addition to the above costs, organisations implement security integrations using several different services to enhance the security of their users and services, including:
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1. Microsoft Defender
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2. Microsoft Intune
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3. Endpoint Manager,
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4. Other third-party software as a service (SAAS) application(s).
All of these integrations increase the organisation’s total IdM cost.
Example Cost Scenario
To gain a clearer picture of the price, take a look at the example of an Indian organisation that has approximately 200 staff members deploying Entra ID.
1. Registration Fee (P1)
Projecting 200 Licenses at ₹500 Each: ₹1,00,000 per month
Yearly License Fee: ₹12,00,000
Cost for Implementation: ₹2,00,000 - ₹4,00,000 (one-off)
Estimated Cost for Year 1 of Use: ₹14,00,000 - ₹16,00,000
Pricing will vary depending on specific security options and agreement with the consultant on the scope of work.
2. Benefits of Entra ID Deployment
Organisations continue to make the investment into Entra ID for their enhanced security and improved productivity, despite the costs associated with it.
Entra ID offers several advantages, including:
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1. Secure identity management across all on-premises and cloud-based systems
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2. Single sign-on capabilities for thousands of SaaS applications
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3. Multi-factor authentication
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4. Conditional access policy enforcement
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5. A zero-trust security architecture
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6. Streamlined IT administration
Organisations consider this a strategic investment, rather than an operational expense, due to the high prevalence of identity breaches being a leading cause of cyber-attack(s).
Conclusion
Setting up Microsoft Entra ID with Active Directory in India has a cost that is based on a variety of factors, including licensing, implementation, and the user base. The basic service can cost around Rs 500 per month per user. However, the total cost of deployment ranges from Rs 50,000 for small businesses to several lakhs for enterprise environments.
Entra ID is a scalable and comprehensive identity platform for hybrid or cloud-focused organisations, and it provides a strong security framework, facilitates ease of access management, and supports the end-to-end digital workplace.
FAQs
1. What is Microsoft Entra ID?
Microsoft Entra is Microsoft's identity and access management service in the cloud. It offers organisations the ability to manage user authentication, access to applications, and security for both cloud-based and on-premises systems (formerly known as Azure Active Directory).
2. How much does Microsoft Entra ID cost in India?
Pricing is based on the type of license. Entra ID Premium P1 generally costs around Rs. 500.00 per user, per month for Indian users, while Premium P2 generally costs around Rs. 750.00.
3. Is Microsoft Entra ID free?
There is indeed a free version of Microsoft Entra Identity (formerly Azure Active Directory), but users will need a premium license for the advanced security features.
4. What is the cost of implementing Entra ID with Active Directory?
The cost to implement Entra ID in an organisation typically ranges from ₹50,000 to ₹500,000, depending on the organisation's size, the complexity of the current Active Directory environment, and the number of users.
5. Do small businesses need Entra ID?
All businesses, regardless of size, can leverage Entra ID's secure login, multi-factor authentication, and centralised identity management to enhance security.
Anshul Goyal
Group BDM at B M Infotrade | 11+ years Experience | Business Consultancy | Providing solutions in Cyber Security, Data Analytics, Cloud Computing, Digitization, Data and AI | IT Sales Leader