Group-based license management for Office 365 in Azure AD. You can control who gets a product license and which services are enabled. Define a “license template” and assign it to a security group in Azure AD. Azure AD will automatically assign and remove licenses as users join and leave the group.

  • Licenses can be assigned using any “security group” in Azure AD, whether synced from on-premises or created directly in Azure AD.
  • All Microsoft Online Services that require user-level licensing are supported.
  • The administrator can disable one or more service components when assigning a license to a group. This allows staged deployments of rich products like Office 365 Enterprise E5 at scale.
  • The feature is only available in the Azure portal.
  • Licenses are typically added or removed within minutes of a user joining or leaving a group.

Read more about it here.