Manage licenses in Azure AD

Managing licenses in Azure Active Directory (Azure AD) is critical for organizations that want to ensure they are in compliance with their software use terms and to optimize their software spending. Azure AD provides several capabilities for managing licenses for Microsoft Online Services like Office 365, Enterprise Mobility Suite (EMS), and Microsoft Azure.

License Management in Azure AD

To manage licenses, Azure AD administrators can use the Azure portal or automate processes using PowerShell cmdlets. Utilizing Azure AD for license management entails assigning, unassigning, and monitoring the usage of licenses within your organization.

Assigning Licenses

You can assign licenses to user accounts individually or in bulk. For individual assignments, you need to access the Azure portal, navigate to the Azure Active Directory, select the user, and then manage their licenses.

For bulk assignments, you can use group-based licensing, which allows you to assign a license to a group in Azure AD and have all members of that group automatically receive the license. This is particularly useful for large organizations.

Example: To assign an Office 365 license to a user individually:

1. Sign in to the Azure portal.
2. Go to Azure Active Directory > Users.
3. Select the user.
4. Click on Licenses > Assign license.
5. Select the license you want to assign and click Assign.

License Reconciliation

Azure AD provides a feature known as license reconciliation that ensures a user’s most essential licenses are prioritized in case there are not enough licenses to go around. This feature automatically removes non-essential licenses from the user and ensures they retain critical service licenses.

Monitoring License Usage

To maintain effective license management, administrators can monitor license usage to see how many licenses are in use and how many are available. Through the Azure portal, you can generate reports to get insights into your organization’s license status.

Example: To view license usage in the Azure portal:

1. Sign in to the Azure portal.
2. Navigate to Azure Active Directory > Licenses.
3. Here, you can select All products to view the usage of all licenses or pick a specific product.

Unassigning Licenses

Unassigning licenses can be done manually through the Azure portal or with automated processes using PowerShell. This is important when a user no longer needs a service or when they leave the organization.

Example: To remove a license from a user:

1. Go to Azure Active Directory > Users.
2. Select the user.
3. Click on Licenses > Remove license.
4. Choose the license to remove and confirm.

Automation with PowerShell

For more advanced license management scenarios, you can use PowerShell cmdlets. This allows administrators to script the process of assigning and unassigning licenses, and more complex license management tasks.

Example: To assign a license using PowerShell:

$License = New-Object -TypeName Microsoft.Open.AzureAD.Model.AssignedLicense
$License.SkuId = (Get-AzureADSubscribedSku | Where-Object { $_.SkuPartNumber -eq “ENTERPRISEPACK” }).SkuId
$LicenseToAdd = New-Object -TypeName Microsoft.Open.AzureAD.Model.AssignedLicenses
$LicenseToAdd.AddLicenses = $License

Set-AzureADUserLicense -ObjectId “<UserObjectId>” -AssignedLicenses $LicenseToAdd

Replace `ENTERPRISEPACK` with the appropriate SKU part number and `<UserObjectId>` with the user’s object ID in Azure AD.

Licensing Considerations for Hybrid Environments

Organizations running hybrid environments with on-premises Active Directory and Azure AD need to make sure licenses are correctly synchronized. Azure AD Connect helps with this by syncing user profiles, enabling seamless license management across environments.

Reporting and Compliance

Azure AD’s licensing features also help with reporting and compliance. Administrators can generate detailed reports on license assignments, usage, and compliance with licensing agreements.

Advanced License Management with Azure AD Premium

Azure AD Premium provides additional rich features for license management, like dynamic group membership, which can reduce the administrative overhead for managing licenses.

Summary Table

Conclusion

Effective license management in Azure AD is crucial for operational efficiency, compliance, and cost optimization. By using the tools Azure AD provides, Azure administrators can assign, monitor, and manage licenses in accordance to an organization’s needs. The AZ-104 Microsoft Azure Administrator exam will require understanding these principles and potentially demonstrating the ability to manage these licenses using both the Azure portal and PowerShell scripts.