Like previous versions, Password Manager still performs a user count based on enabled users. However, the new licensing model allows for more granular licensing. Please see the attached screenshot titled Sample License for an example.
The license type available to purchase is either of these types:
Note: You can either have a license type of Enabled User or Managed Person but not both. For example, you can have either 1000 Enabled Users licenses or 1000 Managed Person licenses but not both.
For the Managed Person license type you can split the licenses between Internal or External but the total counts towards both. Ie. 200 Internal, 800 External but still 1000 total.
To view your licenses, navigate to the PMAdmin site and select Licensing from the left Menu. (see attachment)