Identity Management in Azure (From Azure Active Directory to Microsoft Entra ID)

Posted by: Brian Martel , on 8/28/2023, in Category Microsoft Azure
Views: 26372
Abstract: This tutorial delves deep into the world of Azure’s identity management, covering features of Azure AD. It also mentions some new features of Microsoft Entra ID.

In the ever-evolving landscape of cloud computing, identity and access management remains a cornerstone of security. Microsoft, a pioneer in this realm, has taken a significant leap forward by transitioning from Azure Active Directory (Azure AD) to Microsoft Entra ID.

This tutorial delves deep into the world of Azure’s identity management, covering features of Azure AD and concluding it by mentioning some new features of Entra ID.

Brief Overview of Identity and Access Management (IAM)

Identity and Access Management (IAM) is a holistic framework that ensures only authorized individuals have access to the appropriate resources within an organization. This framework covers user management, authentication, authorization, and compliance, laying down a secure foundation for business operations.

Importance of IAM in Cloud Environments

In the context of cloud computing, IAM assumes an even more critical role. As resources are accessed remotely, often beyond the traditional network boundaries, IAM ensures that only authenticated and authorized users can access these resources. This not only enhances security but also facilitates regulatory compliance and efficient resource management.

Introduction to Microsoft Entra and Its Role in IAM

Microsoft Entra, which includes the newly rebranded Microsoft Entra ID (formerly Azure Active Directory), is a comprehensive solution for identity and access management. It offers a range of features that align with the Zero Trust model, emphasizing robust security measures and efficient identity governance. Microsoft Entra aims to provide an integrated approach to IAM, making it easier for organizations to manage various aspects of identity and security.

What is Azure Active Directory (Azure AD)?

Azure Active Directory (Azure AD), now part of Microsoft Entra ID, is Microsoft’s cloud-based IAM service. It enables organizations to provide their employees with access to external resources like Microsoft 365, the Azure portal, and numerous other SaaS applications. Additionally, Azure AD also facilitates access to internal assets, such as intranet apps and custom-developed cloud applications, ensuring a consistent user experience regardless of the accessed resource.

Differences between Active Directory, Azure Active Directory, and Microsoft Entra

  • Active Directory (AD): Primarily an on-premises identity solution, AD manages users, groups, and computers within a corporate network and uses protocols like LDAP and Kerberos for authentication.

  • Azure Active Directory (Azure AD): A cloud-centric solution designed for managing identities in the cloud. It supports modern authentication protocols like OAuth and OpenID Connect and integrates seamlessly with various cloud services.

  • Microsoft Entra: An evolved form of Azure AD, now known as Microsoft Entra ID, it represents a shift in Microsoft’s approach to IAM. It offers enhanced security features, workload identities, and identity governance, among other functionalities, making it a comprehensive IAM solution.

For a more detailed comparison between AD and Azure AD, you can refer to the official comparison document.


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How Azure AD Integrates with Microsoft 365, Azure Portal, and SaaS Applications

Azure AD’s is integrated within the Microsoft ecosystem in the following manner:

  • Microsoft 365 Integration: Every Microsoft 365 subscription inherently ties to an Azure AD tenant. This means organizations using Microsoft 365 are also leveraging Azure AD for identity and access management.
  • Azure Portal Integration: Azure AD is the backbone of identity management for the Azure portal. It manages user identities, ensuring they have the right permissions to access Azure resources.
  • SaaS Applications Integration: Azure AD supports Single Sign-On (SSO) for a multitude of SaaS applications. This SSO capability ensures users sign in once and gain access to multiple applications without the need for repeated authentication.

Azure AD offers a range of licenses, from the free tier to Premium P1 and P2. Each tier provides a different set of features tailored to varying organizational needs. For instance, the premium licenses offer advanced features like Azure AD Identity Protection, Privileged Identity Management, and more.

Key Benefits of Azure Active Directory (Azure AD)

Azure Active Directory offers a plethora of benefits tailored to different user roles. These benefits not only enhance security but also streamline operations and improve user experiences.

Let’s explore these benefits in detail:

Benefits for IT Admins

1. Access Control

Azure AD provides granular access control, ensuring that only authorized individuals can access specific resources. With features like Conditional Access, IT admins can define and enforce policies based on user location, device health, and other contextual factors.

2. Multi-Factor Authentication (MFA)

Security is must have in today’s digital landscape. Azure AD’s MFA feature adds an additional layer of security by requiring two or more verification methods. This could be something the user knows (password), something the user has (security token or phone), or something the user is (fingerprint or facial recognition).

3. User Provisioning

Azure AD streamlines the process of creating, updating, and deleting user identities with automated user provisioning. It can synchronize with on-premises directories like Windows Server AD, ensuring a unified identity solution.

4. Powerful Security Tools

Azure AD equips IT admins with robust security tools. Features like Identity Protection leverage machine learning to detect suspicious activities and potential vulnerabilities, allowing admins to take proactive measures.

Benefits for App Developers

1. Standards-Based Authentication

Azure AD supports modern authentication protocols such as OAuth 2.0, OpenID Connect, and SAML. This ensures that app developers can leverage standardized methods for authentication, simplifying integration and enhancing security.

2. Single Sign-On (SSO)

Azure AD’s SSO capability is a boon for app developers. It ensures that users authenticate once and gain access to multiple applications without repeated sign-ins. This not only enhances user experience but also reduces password fatigue.

3. Azure AD APIs

Azure AD offers a rich set of APIs that developers can harness to build personalized app experiences. These APIs provide access to organizational data, user profiles, group memberships, and more, allowing developers to tailor app functionalities based on user roles and preferences.

Benefits for Microsoft 365, Office 365, Azure, and Dynamics CRM Online Subscribers

1. Unified Identity

Subscribers of Microsoft’s cloud services benefit from a unified identity solution. Every Microsoft 365, Office 365, Azure, or Dynamics CRM Online subscription is intrinsically linked to an Azure AD tenant, ensuring consistent identity and access management across services.

2. Integrated Cloud Apps

Azure AD’s integration with Microsoft’s cloud ecosystem ensures that subscribers can seamlessly access various services. Whether it’s accessing SharePoint sites in Microsoft 365 or deploying resources in Azure, Azure AD ensures a streamlined authentication process.

3. Enhanced Security

Azure AD’s security features, like MFA and Conditional Access, extend to all integrated cloud services. This means subscribers of Microsoft 365, Office 365, Azure, and Dynamics CRM Online benefit from enhanced security, reducing the risk of breaches and unauthorized access.

Azure Active Directory, with its diverse range of benefits, is pivotal for organizations aiming to harness the power of the cloud. Whether you’re an IT admin, an app developer, or a subscriber to Microsoft’s cloud services, Azure AD offers tools and features that enhance security, streamline operations, and improve overall user experiences.

Azure AD Licensing

Azure Active Directory (Azure AD) plays a pivotal role in helping organizations manage and secure user identities and provides a range of functionalities tailored to different needs. Azure AD offers various licensing options to cater to diverse organizational requirements.

Overview of Azure AD licenses

Azure AD provides multiple licensing tiers, each designed to offer a specific set of features and capabilities:

1. Azure Active Directory Free: This is the default version that comes with any Microsoft Online business service, such as Microsoft 365 or Microsoft Azure. It provides basic features suitable for initial cloud engagements.

2. Azure Active Directory Premium P1: A more advanced version that offers richer enterprise-level identity management capabilities, including hybrid users’ access to both on-premises and cloud resources.

3. Azure Active Directory Premium P2: The most advanced licensing tier, offering all the capabilities of Azure AD, including advanced identity protection and identity governance features.

Features and benefits of each license type 

Azure Active Directory Free
  • User and Group Management: Manage your cloud users and groups.
  • On-Premises Directory Synchronization: Sync with on-premises directories.
  • Basic Reports: Access to standard reports.
  • Self-Service Password Change: Allows cloud users to change their passwords.
  • Single Sign-On (SSO): SSO across Azure, Microsoft 365, and many popular SaaS apps.
Azure Active Directory Premium P1
  • All features of Azure AD Free: Inherits all the capabilities of the Free version.
  • Hybrid Users Access: Access to both on-premises and cloud resources.
  • Dynamic Groups: Advanced administration with dynamic group membership.
  • Self-Service Group Management: Users can create and manage groups.
  • Microsoft Identity Manager: Synchronize identities and manage user settings.
  • Cloud Write-Back Capabilities: Enables self-service password reset for on-premises users.
Azure Active Directory Premium P2
  • All features of Azure AD Premium P1: Inherits all the capabilities of the P1 version.
  • Azure AD Identity Protection: Provides risk-based Conditional Access to apps and data.
  • Privileged Identity Management (PIM): Discover, restrict, and monitor administrators and their access to resources. Provides just-in-time privileged access.

Pricing options and how to choose the right license for your needs

Azure AD’s licensing model is designed to be flexible, catering to the varied needs of organizations. The pricing for these licenses can be found on the Azure Active Directory Pricing page.

When choosing a license:

  • Evaluate Your Needs: Understand your organization’s identity and access management requirements. Do you need basic management features, or are you looking for advanced security and governance capabilities?
  • Consider User Volume: The number of users in your organization can influence the cost. Some licenses might offer volume discounts.
  • Future-Proofing: Consider your organization’s growth and future needs. It might be cost-effective to invest in a higher-tier license now if you anticipate scaling or requiring advanced features soon.
  • Trial and Testing: Microsoft often offers trial versions. Test the features and see if they align with your needs before making a commitment.

Azure AD’s licensing tiers are designed to provide organizations with the flexibility to choose the right set of features for their needs. By understanding the capabilities of each license and evaluating your organization’s requirements, you can make an informed decision that aligns with your identity and access management goals.

Core Features of Azure AD

Azure Active Directory (Azure AD) is a multifaceted identity solution designed to provide seamless access, robust security, and an integrated user experience. Let’s explore its core features in detail:

Application Management

Azure AD’s application management capabilities ensure that both cloud and on-premises applications are easily accessible and secure.

  • Managing Cloud and On-Premises Apps: Azure AD offers a unified platform for managing applications regardless of their hosting environment. This ensures that users have a consistent access experience, whether they’re accessing a cloud-based SaaS application or an on-premises legacy application.
  • Application Proxy and Single Sign-On (SSO): Azure AD’s Application Proxy provides secure remote access to on-premises applications, eliminating the need for VPNs or DMZs. Coupled with SSO, users can access multiple applications with a single set of credentials, streamlining the authentication process and enhancing user productivity.
  • The My Apps Portal and SaaS App Integration: The ‘My Apps’ portal is a personalized space where users can find and launch all their applications. Azure AD’s seamless integration with thousands of SaaS applications ensures that users can access their apps from anywhere, anytime.


Authentication is the foundation of security in Azure AD.

  • Azure AD Self-Service Password Reset: Users can securely reset their passwords without IT intervention. This not only reduces IT overhead but also ensures that users don’t face unnecessary downtime due to forgotten passwords.
  • Multi-Factor Authentication (MFA): MFA enhances security by requiring users to provide multiple forms of verification. This could be a combination of something they know (password), something they have (a phone or hardware token), and something they are (fingerprint or facial recognition).
  • Custom Banned Password Lists and Smart Lockout: Azure AD allows organizations to define custom lists of banned passwords, preventing users from choosing easily guessable or commonly used passwords. The smart lockout feature intelligently locks out accounts after multiple failed login attempts, protecting users from potential brute-force attacks.

Business-to-Business (B2B) and Business-to-Customer (B2C)

Azure AD’s B2B and B2C features cater to external collaborations and customer interactions.

  • Managing Guest Users and External Partners: Azure AD B2B collaboration allows organizations to securely share resources with external partners. Partners can access shared resources using their own credentials, ensuring a seamless collaboration experience.
  • Customizing User Sign-Up, Sign-In, and Profile Management: Azure AD B2C provides a customizable user experience tailored for external users. Organizations can define the entire user journey, from sign-up to profile editing, ensuring that external users have a consistent and branded experience.

Conditional Access

Conditional Access is Azure AD’s policy-based approach to ensuring secure access.

  • Managing Access to Cloud Apps: Conditional Access policies can be defined to ensure that only compliant devices or users fulfilling certain conditions can access cloud applications.
  • Setting Up and Enforcing Access Policies: Policies can be set up based on user roles, location, device compliance, and risk levels. For instance, a policy could require users to complete MFA if they’re accessing a resource from an unfamiliar location.

Device Management

Azure AD’s device management capabilities ensure that only trusted devices can access organizational resources.

  • Managing Cloud or On-Premises Device Access: Organizations can define which devices are trusted and can access corporate resources. This could be based on device compliance policies or device health.
  • Integrating Devices with Azure AD: Devices can be ‘joined’ or ‘registered’ with Azure AD, ensuring they adhere to organizational security and compliance standards.

Hybrid Identity

Azure AD’s hybrid identity solutions bridge the gap between on-premises directories and the cloud.

  • Integrating On-Premises Directories with Azure AD: Azure AD Connect is a tool that synchronizes on-premises directories with Azure AD, ensuring that users have a single identity to access both on-premises and cloud resources.
  • Benefits of a Hybrid Identity Solution: A hybrid identity ensures that users have a consistent access experience. It also reduces the IT overhead of managing multiple identities and ensures that security policies are uniformly applied.

Identity Governance and Protection

Azure AD provides robust tools for identity governance.

  • Managing Identity Through Access Controls: Access reviews can be periodically conducted to ensure that users have the appropriate access levels. Any redundant or excessive permissions can be revoked, adhering to the principle of least privilege.
  • Detecting Vulnerabilities and Responding to Suspicious Actions: Azure AD Identity Protection uses machine learning to detect suspicious activities. It can enforce MFA or block certain actions if it detects potential security threats.

Privileged Identity Management (PIM)

PIM is Azure AD’s solution for managing and monitoring privileged access.

  • Managing and Monitoring Access Within the Organization: PIM ensures that users only have elevated access when they need it. Access can be time-bound, reducing the potential security risks of persistent elevated access.
  • Providing Just-In-Time Access to Resources: Users can request elevated access when required. This access can be granted for a specific duration, after which it’s automatically revoked.

Azure AD’s comprehensive suite of features ensures that organizations can securely and efficiently manage user identities and access. Whether it’s providing seamless access to applications, ensuring robust authentication, or managing external collaborations, Azure AD is equipped to handle the diverse needs of modern organizations.

IAM – Deep Dive into Key Features

Identity and access management is a cornerstone of cloud security, and Azure Active Directory (Azure AD) offers a plethora of features to ensure that users can securely and efficiently access resources. Let’s delve deeper into some of the standout features of Azure AD.

Active Directory & M365 Management

Azure AD’s integration with Microsoft 365 is not just about user authentication. It’s about providing a unified identity across all Microsoft services, ensuring that users don’t have to juggle multiple credentials or undergo repetitive sign-in processes across the various tools they use daily.

  • Unified Identity: With Azure AD, users have a single identity to access resources ranging from email in Outlook to documents in SharePoint. This unified identity simplifies user management for IT admins and enhances productivity for end-users.
  • Seamless Integration: Azure AD is deeply woven into Microsoft 365, ensuring that any changes in user roles, permissions, or other attributes are instantly reflected across all services. This ensures consistency and reduces administrative overhead.
  • Security Enhancements: The integration also brings in Azure AD’s robust security features into Microsoft 365, such as conditional access, which can enforce policies like requiring multi-factor authentication when accessing sensitive documents.

Multi-Factor Authentication (MFA)

MFA is more than just an additional password. It’s a dynamic security feature that adapts to the evolving threat landscape.

  • Setup and Configuration: Setting up MFA in Azure AD involves defining a secondary authentication method for users, such as a phone call, text message, or mobile app notification. Admins can enforce MFA for all users or specific groups, and even for specific applications or scenarios.
  • Benefits: MFA significantly reduces the risk of unauthorized access. Even if a malicious actor obtains a user’s password, they would still need the second verification method, making unauthorized access much more challenging.

Single Sign-On (SSO)

SSO is not just a convenience feature; it’s a balance of user experience and security.

  • Configuring SSO: Azure AD allows admins to set up SSO for a multitude of cloud apps. This involves setting up trust between Azure AD and the application, ensuring that sign-in requests and responses are securely handled.
  • Benefits: SSO reduces password fatigue among users, as they don’t need to remember multiple credentials. It also reduces the risk of password-related breaches, as users are less likely to resort to insecure practices like writing down passwords.

Zero Trust Security Model

The Zero Trust model is a shift from the traditional security perimeter concept.

  • Principles: At its core, Zero Trust operates on the principle of “never trust, always verify.” It assumes breaches can happen and therefore requires verification for every access request, regardless of where it originates.
  • Implementation with Azure AD: Azure AD supports the Zero Trust model by enforcing strict access policies, continuous authentication, and conditional access based on user behavior, device health, and other factors.

Privileged Access Management (PAM)

PAM ensures that elevated access is granted judiciously and monitored closely.

  • Setting Up PAM: In Azure AD, PAM is set up by defining “just in time” elevated access. Admins can request access to specific resources, which is granted for a limited time after approval.
  • Benefits: PAM reduces the risk of insider threats and ensures that users have just enough access to perform their tasks. By monitoring and logging privileged access, organizations can quickly detect and respond to any malicious activities.

Understanding Microsoft Entra ID (Previously Azure Active Directory)

Microsoft has recently unveiled a series of updates to its Entra product family, including the rebranding of Azure Active Directory to Microsoft Entra ID. These changes are not just cosmetic; they signify a shift in Microsoft’s approach to identity and security management.

The updates aim to help organizations bolster their security posture amidst growing cyber threats and the increasing adoption of cloud-based services. Released for the last quarter (April – June 2023), these features also include enhancements to existing functionalities.

Unified Identity and Security Features

Microsoft Entra ID, formerly known as Azure Active Directory, is now the cornerstone of Microsoft’s multi-tenant, cloud-based directory and identity management service. It integrates core directory services, application access management, and identity protection into a single, cohesive solution. The new features in Microsoft Entra ID align with the Zero Trust model, emphasizing that no one should be trusted by default, whether inside or outside the organization.

Key Highlights of Microsoft Entra ID:

  • Azure Active Directory Updates: Now part of Entra ID, this includes new features like Certificate-Based Authentication on Mobile and Microsoft Enterprise SSO for Apple Devices.
  • Permissions Management: Enhanced features related to Azure Active Directory Insights and Billable Resources.
  • Workload Identities: Includes Workload Identity Federation for Managed Identities and Managed Identity in Microsoft Authentication Library for .NET.
  • External ID and B2B Sign-in: Changes in the B2B sign-in experience to make it more secure and user-friendly.
  • Identity Governance: New features like Lifecycle Workflows, Cross-Tenant Synchronization, and more.

Additional Features in Microsoft Entra ID:

  • Security Baseline: A comprehensive guide outlining the security measures and configurations that organizations should adopt.
  • User and Group Management: Simplified processes for creating users and groups and managing their access and permissions.
  • Application and Data Access: Seamless application management and data access, leveraging Entra ID as the primary authentication service.
  • Hybrid Identity and Multi-Tenancy: Capabilities for creating user identities that can access both on-premises and cloud resources, as well as collaboration across different tenants within your organization.
  • Monitoring and Governance: Tools for protecting, monitoring, and auditing access throughout the identity and access lifecycles.

Microsoft Entra and Entra ID represent a significant leap in the realm of identity and security management. With its robust and comprehensive suite of features, Microsoft aims to ensure that organizations can manage identities, access, and resources both efficiently and securely.

As the digital landscape continues to evolve, Microsoft Entra is poised to be an essential tool in helping organizations navigate these changes with confidence.

It’s crucial to stay updated with these changes to leverage the platform’s full potential. Here’s a link to the official documentation for a comprehensive list of updates.

Thought-Provoking Questions for YOU:

How can the new security features in Microsoft Entra help organizations bolster their cybersecurity posture?

What impact will the new identity and access management features have on organizations’ operational efficiency?

With the constant evolution of cyber threats, how well does Microsoft Entra adapt to future security challenges?

Would you like to know more about any specific features or functionalities? You can leave a response in the comments section over here or drop a message on our twitter/X @dotnetcurry.


The transition from Azure AD to Microsoft Entra ID marks a significant milestone in Azure’s identity management journey.

Microsoft Entra ID, with its advanced features and capabilities, is set to redefine the way organizations approach identity and access management in the cloud. As we embrace this new era, it’s crucial for businesses to stay updated and leverage the full potential of Microsoft Entra ID, ensuring a secure, efficient, and productive environment.

This article has been editorially reviewed by Suprotim Agarwal.

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Brian Martel, an experienced Azure and DevOps developer, has spent the last decade mastering technologies such as Kubernetes, Docker, Ansible, and Terraform. Armed with a Bachelor's degree in Computer Science and certifications like Cloud DevOps Engineer Expert (AWS and Azure) and Certified Kubernetes Administrator (CKA), Brian has a proven track record of guiding organizations through successful transitions to cloud-based infrastructures and implementing efficient DevOps pipelines.

He generously shares his wealth of knowledge as a mentor and an active participant in the developer community, contributing articles, speaking at user groups, and engaging with others on social media. All the while, Brian remains dedicated to staying current with the latest trends in his field.

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