What Is Microsoft PIM?
Microsoft Privileged Identity Management is a service in Microsoft Entra ID that controls access to privileged roles. Instead of permanent admin rights, users activate roles on demand for a limited time. This is known as just in time privileged access.
PIM makes roles “eligible” rather than “active.” A Global Admin only holds permissions during a defined activation window. After that, privileges are automatically revoked. As a privileged identity management solution, it covers Entra ID roles, Azure resource roles, and Microsoft 365 group memberships.
How Microsoft PIM Licensing Works
PIM is included in two license tiers:
- Microsoft Entra ID P2
- Microsoft 365 E5
Organizations on E3, Business Premium, or Entra ID P1 need to upgrade. Every user eligible for a PIM-managed role needs a qualifying license. This makes understanding Entra ID P2 pricing and Microsoft 365 E5 pricing essential before rolling out PIM.
Microsoft PIM Pricing: What Costs Should You Expect?
Relevant list prices (per user/month, 2026):
- Entra ID P2 standalone: ~$9.00 / ~€8.40 > PIM included
- Microsoft 365 E5: ~$57.00 / ~€57.00 > PIM included
- Microsoft 365 E3: ~$36.00 / ~€36.00 > PIM NOT included
- Entra ID P1: ~$6.00 / ~€5.60 > PIM NOT included
On E5, PIM is included. On E3, the typical path is adding standalone Entra ID P2. At $9/user/month, 50 eligible users cost over $5,400/year just for PIM. Entra ID P2 also includes Identity Protection and access reviews, which may justify the cost if those features are needed too.
Why Microsoft PIM Can Become Expensive
The technology is solid. The licensing model is the challenge.
Every person who could activate a privileged role needs a P2 or E5 license. When helpdesk staff, project admins, and second-level support all need occasional elevation, the license count grows fast.
Upgrading from E3 to E5 just for PIM means an additional ~$20/user/month. That is hard to justify for just in time admin access alone.
Microsoft PIM also does not cover on-premises Active Directory. Organizations with file servers, legacy apps, or local admin groups need additional privileged identity management software for those scenarios.
What You Get With Microsoft PIM
Key features:
- Eligible role assignments (activate on demand, not permanent)
- Time-bound activation with automatic revocation
- Approval workflows before access is granted
- MFA enforcement on activation
- Justification requirements for audit trails
- Full audit logs and notifications
- Periodic access reviews
PIM integrates well with Entra ID, Azure RBAC, and Microsoft 365. The audit trail supports ISO 27001, SOC 2, and NIS2 compliance.
When a Microsoft PIM Alternative Makes More Sense
PIM is not always the right fit. Consider alternatives when:
License costs are disproportionate to actual PIM usage. Adding P2 for 100+ users when only a few actively use PIM is expensive.
You have hybrid or on-premises environments. PIM does not manage on-prem AD roles, local admin groups, or file server permissions. A solution that bridges cloud and on-prem is needed.
Your use cases are narrow. Temporary helpdesk elevation or AD group management does not require a full PIM deployment.
Your IT team is small. PIM requires significant policy configuration. A streamlined self-service solution can be faster to deploy and easier to maintain.
Microsoft PIM vs. PIM Alternative: Key Decision Criteria
- Licensing: PIM requires P2 or E5 per user. Alternatives are often independent of Microsoft license tier.
- Cloud roles: PIM has full Entra ID + Azure support. Alternatives vary.
- On-prem AD: PIM does not support it. Alternatives typically do.
- Hybrid: PIM covers cloud only. Alternatives bridge both.
- Implementation: PIM needs weeks of policy design. Targeted alternatives deploy in days.
- Self-service: PIM offers basic activation. Alternatives often have richer request and approval workflows.
- Cost model: PIM is per-user/month. Alternatives often use per-use or flat-rate pricing.
Licensing and Total Cost of Ownership
E5 at ~$57/user/month includes PIM but is expensive if PIM is the main driver. Standalone P2 at ~$9/user/month adds up with many users. Alternatives decouple privileged access from the Microsoft license tier.
Just-in-Time Admin Access Requirements
PIM handles Entra ID role activation well. For on-prem AD groups, local admin rights, or application-specific access, you need a solution that covers those scenarios natively.
Cloud, Hybrid and Active Directory Scenarios
Cloud-only organizations benefit most from PIM. Hybrid environments with synced AD, file servers, and legacy apps need a solution that covers both worlds.
Implementation and Operational Effort
PIM requires defining roles, activation rules, approval chains, and access reviews. For targeted use cases like helpdesk elevation, simpler solutions deploy faster with less overhead.
Use Cases Where an Alternative Can Reduce Costs
Helpdesk teams: 50 helpdesk users with P2 costs $5,400+/year. A self-service portal with approval workflows handles the same tasks for less.
AD group management: Temporary group membership for project access or shared folder permissions. PIM does not cover on-prem groups.
Specific admin tasks: Running scripts, accessing servers, or monthly compliance checks. Targeted automation handles this without full PIM infrastructure.
Mixed license environments: When only part of the organization is on E5, extending PIM to E3 users means license upgrades. An alternative provides just-in-time access without changing license tiers.
Frequently Asked Questions
PIM requires Entra ID P2 ($9/user/month) or Microsoft 365 E5 ($57/user/month). Every eligible user needs a qualifying license.
Yes. PIM is fully included in E5. It is not included in E3, E1, or Business Premium.
Yes. PIM requires Entra ID P2 or a license that includes it (E5). Entra ID P1 does not include PIM.
Microsoft PIM focuses on Entra ID and Azure roles. A broader solution may also cover on-prem Active Directory, hybrid environments, local admin access, and custom approval workflows.
When on-prem AD coverage is needed, when P2 licensing costs are disproportionate, when hybrid environments need to be covered, or when a simpler self-service approach is preferred.
