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Microsoft 365 SCIM guide

Native SCIM

How to automate Microsoft 365 user provisioning, and what it actually costs

Native SCIM requires Business Basic+ (SSO), P1/P2 (SCIM) plan

Summary and recommendation

Microsoft 365 presents a unique provisioning challenge because it functions as the identity provider (through Entra ID) rather than a target application. While Microsoft 365 includes comprehensive SCIM provisioning capabilities to push users TO other applications, it cannot receive SCIM provisioning FROM external identity providers like Okta or Google Workspace. Organizations using non-Microsoft IdPs must manually create and manage Microsoft 365 user accounts, even though they can configure SAML SSO for authentication. This creates a significant operational burden for IT teams managing hybrid identity environments.

The gap becomes particularly problematic for organizations standardized on Okta, Google Workspace, or OneLogin as their primary IdP. They can authenticate users into Microsoft 365 seamlessly, but cannot automate the creation, updates, or deprovisioning of Microsoft 365 accounts when employees join, change roles, or leave. This manual overhead defeats the purpose of centralized identity management and creates compliance risks around orphaned accounts and delayed access provisioning.

The strategic alternative

Stitchflow provides SCIM-level provisioning through resilient browser automation for Microsoft 365 that works with any identity provider—Okta, Entra, Google Workspace, or OneLogin. We handle the complex API integrations to ensure your Microsoft 365 accounts stay synchronized with your primary IdP. Flat pricing under $5K/year, regardless of team size.

Quick SCIM facts

SCIM available?Yes
SCIM tier requiredBusiness
SSO required first?Yes
SSO available?Yes
SSO protocolSAML 2.0, OIDC, OAuth2, WS-Fed
DocumentationOfficial docs

Supported identity providers

IdPSSOSCIMNotes
OktaOIN app with full provisioning
Microsoft Entra IDGallery app with SCIM
Google WorkspaceJIT onlySAML SSO with just-in-time provisioning
OneLoginSupported

The cost of not automating

Without SCIM (or an alternative like Stitchflow), your IT team manages Microsoft 365 accounts manually. Here's what that costs:

Source: Stitchflow customers using Microsoft 365, normalized to 500 employees:
Orphaned accounts (ex-employees with access)6
Unused licenses15
IT hours spent on manual management/year91 hours
Unused license cost/year$2,124
IT labor cost/year$5,450
Cost of compliance misses/year$1,534
Total annual financial impact$9,109

The Microsoft 365 pricing problem

Microsoft 365 gates SCIM provisioning behind premium plans, forcing significant cost increases for basic user management.

Tier comparison

PlanPriceSSOSCIM
Business Basic$6/user/mo (→$7 July 2026)
Business Standard$12.50/user/mo (→$14 July 2026)
Business Premium$22/user/mo
+ Entra ID P1+$6/user/mo
+ Entra ID P2+$9/user/mo

Pricing structure

PlanPriceSSOSCIM
Business Basic$6/user/mo (→$7 July 2026)
Business Standard$12.50/user/mo (→$14 July 2026)
Business Premium$22/user/mo
+ Entra ID P1+$6/user/mo
+ Entra ID P2+$9/user/mo

Real-world cost impact

100-user organization on Business Premium
$2,200/month base
Add P1 for SCIM provisioning
+$600/month (+$7,200 annually)
Total increase
27% cost jump just for automated provisioning

What this means in practice

Most organizations start with Office 365 for productivity apps but discover they need Entra ID P1/P2 licenses to enable proper SCIM provisioning to other SaaS applications. This creates a painful budget conversation:

Cost escalation example (500 users)

Business Premium base
$132,000/year
Upgrade to P1 for SCIM
+$36,000/year (27% increase)
Upgrade to P2 for advanced features
+$54,000/year (41% increase)

Additional constraints

Licensing complexity
Microsoft's modular pricing means IT teams often discover provisioning requirements after initial purchase
On-premises connectors
Organizations with hybrid environments need additional SCIM connector setup and maintenance
Price increases incoming
July 2026 brings 5-17% price hikes across Office 365 tiers, making the P1/P2 upgrade even more expensive
Bundle confusion
Enterprise Mobility + Security (EMS) bundles can offer better value but require enterprise sales engagement

Summary of challenges

  • Microsoft 365 supports SCIM but only at Business tier (custom pricing)
  • Google Workspace users get JIT provisioning only, not full SCIM
  • Our research shows teams manually provisioning this app spend significant hidden costs annually

What Microsoft 365 actually offers for identity

Microsoft 365 presents a unique situation: it's typically the identity provider (IdP), not the target for SCIM provisioning. However, understanding the full picture helps clarify your options.

Entra ID (Built-in Identity Platform)

Microsoft 365 includes Entra ID (formerly Azure AD) as its identity backbone:

FeatureBusiness BasicBusiness StandardBusiness Premium
Basic SSO✓ Yes✓ Yes✓ Yes
JIT Provisioning✓ Yes✓ Yes✓ Yes
SCIM Provisioning (outbound)Requires P1/P2Requires P1/P2Requires P1/P2
Advanced security featuresLimitedLimited✓ Yes

The licensing trap: While Microsoft 365 Business plans include basic SSO, full SCIM provisioning capabilities require Entra ID P1 ($6/user/month) or P2 ($9/user/month) licenses on top of your base Microsoft 365 subscription.

What's Actually Included

Microsoft 365 Business plans provide:

Basic identity management for Microsoft services (Exchange, Teams, SharePoint)
SAML/OIDC SSO to third-party applications
JIT provisioning for compatible apps
Directory synchronization with on-premises Active Directory

The Real Cost for SCIM

To provision users TO other applications from Microsoft 365, you need:

Base Microsoft 365 subscription ($6-22/user/month)
Entra ID P1 license (+$6/user/month) or P2 (+$9/user/month)
Total minimum
$12/user/month for basic SCIM capabilities

For a 100-user organization, that's $14,400/year minimum—with price increases hitting July 2026.

The irony: Most organizations using Microsoft 365 need to provision users FROM Entra ID TO other applications, not the reverse. If you're looking to provision users INTO Microsoft 365 from another IdP, you're working against the Microsoft ecosystem's design.

What IT admins are saying

Community sentiment on Microsoft 365's provisioning reveals frustration with licensing complexity and hidden costs:

  • P1/P2 licensing requirements add $6-22/user/month just for full SCIM provisioning features
  • Pricing tier confusion - basic Business plans include SSO but not automated provisioning
  • Enterprise Mobility Suite (EMS) bundling creates unnecessary complexity for simple provisioning needs
  • July 2026 price increases (Business Basic $6→$7, Standard $12.50→$14) compound the cost concerns

The pricing complexity with modular features makes it difficult to budget accurately for our identity management needs.

IT Director, Mid-market SaaS company

We're paying for Business Standard but still need P1 licenses for proper user provisioning - the cost add-up is significant when you factor in the upcoming price increases.

Systems Administrator, Healthcare organization

The recurring theme

While Microsoft 365 is the identity backbone for most organizations, IT teams face sticker shock when they discover that comprehensive provisioning features require premium licensing tiers on top of their existing Business plans.

The decision

Your SituationRecommendation
Small organization (<25 users) with Microsoft as primary IdPManual management is acceptable
Microsoft shop with Entra ID P1/P2 already licensedUse native SCIM provisioning - you're already paying for it
Mixed IdP environment (Okta, Google Workspace) needing M365 accessUse Stitchflow: cross-platform automation essential
Enterprise requiring detailed provisioning audit trailsUse Stitchflow: superior monitoring and compliance reporting
Organizations on Business Basic/Standard without P1/P2Use Stitchflow: cheaper than upgrading to P1 ($6+/user/month)

The bottom line

Microsoft 365 has robust SCIM capabilities, but only if you're already paying for Entra ID P1/P2 licensing—otherwise you're looking at significant cost increases starting at $6 per user monthly. For organizations using non-Microsoft IdPs or those wanting advanced provisioning oversight without the P1/P2 premium, Stitchflow delivers enterprise-grade automation at flat pricing.

Automate Microsoft 365 without the tier upgrade

Stitchflow delivers SCIM-level provisioning through resilient browser automation, backed by 24/7 human in the loop for Microsoft 365 at <$5K/year, flat, regardless of team size.

Works alongside or instead of native SCIM
Syncs with your existing IdP (Okta, Entra ID, Google Workspace)
Automates onboarding and offboarding
SOC 2 Type II certified
24/7 human-in-the-loop monitoring
Book a Demo

Technical specifications

SCIM Version

2.0

Supported Operations

Create, Update, Deactivate, Groups

Supported Attributes

Not specified

Plan requirement

Business

Prerequisites

SSO must be configured first

Key limitations

  • SCIM provisioning features require P1 or P2 license tier
  • Full functionality costs more than base SSO
  • On-premises SCIM requires additional connector setup

Configuration for Okta

Integration type

Okta Integration Network (OIN) app with SCIM provisioning

Prerequisite

SSO must be configured before enabling SCIM.

Where to enable

Okta Admin Console → Applications → Microsoft 365 → Provisioning

Required credentials

SCIM endpoint URL and bearer token (generated in app admin console).

Configuration steps

Enable Create Users, Update User Attributes, and Deactivate Users.

Provisioning trigger

Okta provisions based on app assignments (users or groups).

Microsoft 365 in OIN. Provisioning via Office365 SCIM integration. Bidirectional sync supported.

Native SCIM is available on Business. Use Stitchflow if you need provisioning without the tier upgrade.

Configuration for Entra ID

Integration type

Microsoft Entra Gallery app with SCIM provisioning

Prerequisite

SSO must be configured before enabling SCIM.

Where to enable

Entra admin center → Enterprise applications → Microsoft 365 → Provisioning

Required credentials

Tenant URL (SCIM endpoint) and Secret token (bearer token from app admin console).

Configuration steps

Set Provisioning Mode = Automatic, configure SCIM connection.

Provisioning trigger

Entra provisions based on user/group assignments to the enterprise app.

Sync behavior

Entra provisioning runs on a scheduled cycle (typically every 40 minutes).

Microsoft Entra ID IS the provisioning source - provisions TO other apps via SCIM, not provisioned FROM external sources.

Native SCIM is available on Business. Use Stitchflow if you need provisioning without the tier upgrade.

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Last updated: 2026-01-11

* Pricing and features sourced from public documentation.

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