What you need to know about the changes to Azure AD B2C

If your organisation uses Azure AD B2C, there are some important updates from Microsoft you’ll want to know about. From 1 May 2025, new purchases of Azure AD External Identities P1 and P2 will no longer be available.

This is all part of Microsoft’s ongoing migration to its newest CIAM platform: Microsoft Entra External ID.

So, what’s actually changing?

We’re aware that these kinds of announcements can cause a little confusion when it comes to product names, licences, and what’s actually going away.

So, here’s the important stuff:

• From 1 May 2025, the Azure AD External Identities P1 and P2 SKUs will be retired for new purchases.
• This does not mean Azure AD B2C is being retired. You’ll still be able to:
  • Create new B2C tenants
  • Link tenants to subscriptions
  • Use all existing features, including custom policies and user flows
• Microsoft has publicly committed to supporting Azure AD B2C until at least May 2030, with no changes to SLAs, security updates, or compliance guarantees.
• B2B collaboration and B2B direct connect features are now under the Microsoft Entra External ID umbrella but still live in the same part of the Entra admin centre.

What’s the impact on current Azure AD B2C users?

If you’re already using Azure AD B2C, the main thing to note is that there’s no need to panic.

Here’s what it means in practical terms:

• You won’t lose access to your existing B2C environment
• You can still create new tenants and continue using custom policies
• Your current licensing will remain valid and supported
• Microsoft has committed to ongoing support through at least 2030

But, what if…

In the meantime, we recommend:

• Reviewing what custom policies you’re using today
• Keeping an eye out for updates from Microsoft about migration support

So, no need to make sudden changes. But it might be a good time to start thinking about your long-term strategy and what your migration path from B2C to External ID might look like.

A quick bit of background

This shift is part of a longer roadmap.

Back at Microsoft Build in May 2023, Microsoft previewed its next-generation external identity platform, laying the groundwork for what is now Microsoft Entra External ID.

The goal?

A single, integrated platform that makes it easier to manage external identities, from customers and partners to citizens and patients, with improved developer experiences and more built-in capabilities.

Kocho has been involved from day one: helping test the platform, advising on use cases, and working closely with Microsoft to shape how it fits real-world enterprise needs.

Kocho’s thoughts

Microsoft is making its direction of travel clear, and while there’s no rush to move away from Azure AD B2C, the future is with Microsoft Entra External ID.

That said, Microsoft’s long-term support commitment through to at least 2030 gives organisations plenty of time to prepare, plan, and transition when the time is right.

At Kocho, we’re already helping organisations understand the impact of this shift. Whether that’s evaluating new projects, testing Entra External ID’s evolving capabilities, or planning for eventual migration.

Got questions or want to see what Entra External ID looks like in action? Let’s chat.