I wish to use the Azure AD directory for authentication instead of internal directory. Keeping the things simple we have the user email same in internal and Azure AD .Pertaining to this scenario i have these questions:
There will not be any data loss if the username in the internal directory is exactly the same in the Azure AD. All you have to do add the new directory and move the order of the new directory above the old directory and now Jira will authenticate the user to the new directory. You may read more here Managing multiple directories
Only users who are a member of the groups which have application access will consume license. Thus, if you do not want a specific set of users to consume the license, ensure that they are not a member of any of the groups which have application access. You may learn more here Licensing and application access
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