How to automatically assign Office 365 licenses to users based on groups

If you have a large on premise environment, you might want to automate the assignment of Office 365 licenses by using (dynamic) security groups in Azure AD. With this simple manual you should be able to setup automatic license assignment based on a security group.

STEP 1: In the Azure portal (https://portal.azure.com) go to Azure Active Directory

Go to the Licenses tab

Now go to All products and select the product that you want to automatically assign based on a group. In this example we will use Office 365 E3.

STEP 2: Now go to Licensed groups and click on + Assign

STEP 3: Now select the appropriate group. (In my case this is an AD security group part of the RBAC model) But you can create dynamic security groups in Azure AD as well.

Now make sure that you assign all options you need.

Assign the license setting:

The result should look like this, and your good to go:

2 Replies to “How to automatically assign Office 365 licenses to users based on groups”

  1. Was trying to find an easy way. This looks like it may be it.

    One question. If I do it this way, does it enforce it or is in one time when I create a new user that is in a specific group?

  2. from my experience as long as they are in that group you can’t change the license. I’m looking for a way do do an initial assignment of a license as well. If I find something I’ll post back.

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