Identifying Licensing Requirements for External Collaboration

For external collaboration, Microsoft 365 Business and Enterprise plans incorporate guest and external access, eliminating the need for additional licenses specifically for this purpose. In Microsoft Teams, the enabling or disabling of guest access is managed through the Teams admin center, providing direct control over this aspect of team collaboration.

The central management for guest access settings has transitioned to Microsoft Entra, specifically within the External Identities (External ID) section. Previously, you would have used Azure Active Directory (Azure AD).

The billing for inviting external users as guests into your tenant is now based on the Monthly Active Users (MAU) model. This model marks a departure from the earlier 1:5 ratio billing model associated with Azure AD Premium licenses. The MAU billing approach is designed to offer a scalable and predictable cost structure for collaboration with guest...