Consider how Microsoft add-on procurement fits your IAM, compliance, and security strategy

In this article, you'll learn how to:

• Choose the right Microsoft add-ons based on your core license

• Be shown a IAM Workflow tutorial including log auditing

• Set up MFA using Conditional Access

• Configure SSO from Microsoft Entra to an SSO provider like Adobe or Salesforce

• Audit group automations for risky configurations

Many organizations pay for Microsoft add-ons like Defender, Purview, or Sentinel without realizing that base licenses determine how well those features actually function. We hear a lot more about Identity Access Management (IAM) now than in previous times. But, what's the actual Microsoft Cloud Workflow to achieve Identity Access Management? What problems are businesses trying to solve with IAM and license audits?

Businesses are finding misconfigured identity and access after the big MFA and SSO pushes during the early 2020's. Nasty stuff, systems like unmanaged MFA or poorly implemented SAML SSO. People can literally MFA account recover themselves back into administratively locked accounts. These issues often remain unaddressed until after an audit. Even worse, automated group assignments will grant licenses or access incorrectly, exposing the organization to compliance risks. Most of these companies are operating at scale with thousands of seats and these problems become a gross vulnerability.

So what's the basic Microsoft IAM Workflow to fix this Michael?

Start with identity hygiene, automate group access, enforce MFA, validate SSO integration, and limit administrative privilege. Every control should reinforce access governance. That's the workflow.

Here’s how to make smarter choices about Microsoft add-on procurement and lock down your identity access management.

“A fool with a tool is still a fool.” — Grady Booch

Overspending is bad. Under-protecting is worse.

Avoid these mistakes:

• Paying for features without enabling them

• Overbuying E5 just to avoid understanding security policies

• Relying on expensive tools like Sentinel without assessing actual SIEM value

• Assuming SSO works by default across apps without testing

Match Tools to Actual Risk

• Start with the base license. E3 plus targeted add-ons is often better than buying E5 outright.

• Check configuration, not just entitlement. Many features are ineffective without proper setup.

• Enforce least privilege. Group automation can misfire if not regularly audited.

Best Add-On Use by Base License

Business Premium: Great for small to mid-size businesses. Add Defender for Business for endpoint protection. Skip Sentinel unless you collect third-party logs or need correlation features.

Microsoft 365 E3: A strong foundation. Add:

• Microsoft Defender for Office or Endpoint

• Purview Premium for data governance

• Teams Phone if using Microsoft calling plans

Microsoft 365 E5: Comprehensive but only worthwhile if you actually power use:

• Microsoft Defender XDR modules

• Microsoft Sentinel with log ingestion

• Purview’s full data lifecycle tools

• Compliance Manager workflows

GCC and GCC High: Government-focused tenants require licensing review. Defender P2 and Purview Premium are allowed with approval. Sentinel has ingestion limits in GCC High. (See, I'm looking out for you. Now you know.)

Understand What Each Add-On Is For

• Windows 365: Delivers secure Cloud PCs, ideal for BYOD, contractors, or offshore teams.

• Teams Phone + Calling Plans: Simplifies telephony, but adds cost. Useful with centralized IT voice management to allow calling from Teams. Its usually a hit with HR teams and Recruiters.

• Microsoft Defender: Sold in modules. Ensure coverage for endpoints, email, and identity.

• Microsoft Sentinel: Cloud-native SIEM. Use it if you need correlated detection across Azure and third-party logs. Great for Compliance

• Microsoft Purview: Unifies data lifecycle management, DLP, insider risk, and compliance.

Quick IAM Technical Tutorial Using Microsoft Cloud (Microsoft Entra)

Step 1: Create and Secure User Identities

1. Go to Microsoft Entra Admin Center: https://entra.microsoft.com

2. Navigate to Users > New User

3. Create cloud-only or synced identities (from on-prem AD via Entra Connect)

4. Assign usage location and baseline roles

Step 2: Group Users for Role-Based Access

1. Go to Groups > New Group

2. Choose Security as group type

3. Use Assigned, Dynamic User, or Dynamic Device membership

4. Name groups based on RBAC standards (e.g., APP_Salesforce_ReadOnly)

Step 3: Enforce MFA with Conditional Access

1. Navigate to Protection > Conditional Access > New Policy

2. Name it MFA for All Users

3. Assign to: All Users (exclude break-glass accounts)

4. Cloud Apps: All Cloud Apps

5. Access Controls: Grant Access + Require MFA

6. Enable and save

Step 4: Integrate SSO (SAML or OIDC)

1. Go to Enterprise Applications > New Application

2. Select Non-Gallery App or use Gallery if vendor is listed

3. Configure: SAML: Provide Entity ID and Reply URL OIDC: Provide Redirect URI and Client Secret

4. Assign users/groups to the application

5. Use Test SSO to validate and review sign-in logs for claim issues

Step 5: Assign Roles and Least Privilege Access

1. Go to Roles and Administrators

2. Assign only essential roles (e.g., Global Reader, not Global Admin)

3. Use PIM (Privileged Identity Management) for just-in-time access if licensed

4. Enable alerts on role activation or elevation events

Step 6: Audit Sign-In and Access Logs

1. Go to Monitoring > Sign-in Logs

2. Filter by status, app, user, or conditional access result

3. Correlate with Audit Logs to track role assignments, policy changes

Bonus: Secure Service Principals and Automation Accounts

1. Navigate to App Registrations > New Registration

2. Register apps with appropriate permissions (delegated or application)

3. Store secrets securely in Azure Key Vault

4. Use Managed Identities where supported to avoid key spraw

IAM Framework: Use Entra as the Control Plane

Tutorial: Enforce MFA Using Conditional Access

1. Go to Microsoft Entra Admin Center

2. Navigate to Protection > Conditional Access

3. Create new policy: "MFA for Admin Roles"

4. Assign to roles: Global Admin, Security Admin, etc.

5. Target cloud apps: All cloud apps or Microsoft 365

6. Access controls: Grant access, Require MFA

7. Enable the policy

Tutorial: SAML SSO Integration (Single Admin Environment)

1. Go to Microsoft Entra Admin Center > Enterprise Applications

2. Click New Application, then Create your own application

3. Name it and choose Non-gallery application

4. Go to Single sign-on and select SAML

5. Fill in the following: Identifier (Entity ID) Reply URL (Assertion Consumer Service URL) Optional: Sign-on and Logout URLs

6. Download Federation Metadata XML

7. In your app, upload metadata or enter manually: Login URL Azure AD Identifier X.509 Certificate

8. Add user attributes (e.g., user.mail) and custom claims if needed

9. Assign users or groups to the app

10. Use Test SSO to validate

11. Review Entra sign-in logs for errors

What to Audit Before You Buy

• Are you licensed for features you never turn on?

• Are you avoiding Conditional Access because E5 is “easier”?

• Are Sentinel's ingestion costs outweighing security benefits?

• Did you validate SSO with each app before scaling it?

What’s Coming in Q4 2025: New Security & Compliance Licensing Bundles

Microsoft plans to release new bundles that combine Defender, Purview, and Sentinel features. These bundles will focus on Entra-based access management and offer pricing based on actual usage rather than license tiers.

Identity is the control plane. Licensing must support, not inflate. There will always be a point to discuss the amount of licenses in an environment. Make licensing architectural. Buy what protects. Audit what automates. And that’s how you power your potential.

Reader Question: What was the first Conditional Access policy you enforced—and what did you learn?

Recommended Reading

• Microsoft Defender Licensing

• Microsoft Entra Conditional Access Overview

• Microsoft Sentinel Pricing

• Teams Phone Licensing

• Microsoft Purview Overview

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