Key Differences Between Microsoft Entra ID and Active Directory

Introduction

Microsoft Entra ID (formerly Azure Active Directory) includes several features and capabilities that are not present in traditional Active Directory (AD) . While both serve as identity and access management solutions, Entra ID extends beyond the on-premises AD functionality with cloud-based features designed for modern applications and security requirements. 

A comprehensive backup strategy should include both AD and Entra ID to ensure complete data protection and recovery capabilities.

Cloud-Based Identity and Access Management 

Single Sign-On (SSO) for Cloud Apps 

Conditional Access 

Identity Protection & Risk Detection 

Multi-Factor Authentication (MFA) 

Identity Governance and Lifecycle Management 

Hybrid Identity (Azure AD Connect) 

App Registrations and Enterprise Applications 

Identity Federation 

Role-Based Access Control (RBAC) and Granular Permissions 

Security Defaults and Zero Trust Architecture 

Managed Identity for Azure Resources 

Access to Microsoft Cloud Services 

Cross-Platform Device Management (Intune Integration) 

B2B and B2C Identity Management 

Built-in Compliance and Reporting Tools 

NOTE: Entra ID is designed for cloud-first organizations and remote workforce scenarios, while traditional Active Directory is better suited for on-premises environments with a strong reliance on local domain controllers. 

However, many organizations adopt a hybrid model to leverage the benefits of both systems.


NOTE: As of January 27, 2025, Microsoft has implemented a policy affecting unlicensed OneDrive user accounts. Any OneDrive accounts that remain unlicensed for more than 93 days will become inaccessible to both administrators and end users. These accounts will be automatically archived, remaining visible through administrative tools but inaccessible until appropriate actions are taken. This change aims to enhance security, compliance, and storage management within organizations. Notably, education tenants are exempt from this policy.