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.
If you are backing up Active Directory (AD) and syncing it to Microsoft Entra ID (formerly Azure AD), you should still consider backing up Entra ID separately. Entra ID includes cloud-specific features such as Conditional Access, identity protection, and app registrations that are not covered by AD backups. Relying solely on AD backups may not capture Entra ID-specific settings and configurations.
A comprehensive backup strategy should include both AD and Entra ID to ensure complete data protection and recovery capabilities.
Microsoft Entra ID Protection dashboard - Risk detection type to MITRE attack type mapping
Cloud-Based Identity and Access Management
No need for on-premises infrastructure. Users can authenticate from anywhere via the internet.
Integration with cloud applications (SaaS) like Microsoft 365, Salesforce, and thousands of others.
Single Sign-On (SSO) for Cloud Apps
Seamless SSO to cloud-based applications using open standards such as OAuth 2.0, OpenID Connect, and SAML .
Provides users access to multiple applications with a single identity.
Conditional Access
Advanced access control policies based on:
User identity
Device compliance
Location
Risk level (risk-based sign-in)
Allows organizations to enforce multi-factor authentication (MFA) based on these conditions.
Identity Protection & Risk Detection
Uses AI and machine learning to detect suspicious activities and compromised credentials.
Provides risk-based conditional access and remediation steps for detected threats.
Multi-Factor Authentication (MFA)
Built-in MFA capabilities to enforce strong authentication methods, including:
OTP (One-Time Password) via mobile
Authenticator app push notifications
Biometric authentication
Identity Governance and Lifecycle Management
Access reviews to ensure users have the right level of access.
Privileged Identity Management (PIM) to control and audit administrative access.
Self-service group management and self-service password reset (SSPR) .
Hybrid Identity (Azure AD Connect)
Synchronization of on-prem AD with Entra ID for a hybrid setup.
Enables password hash synchronization (PHS), pass-through authentication (PTA), or federation with AD FS.
App Registrations and Enterprise Applications
Allows registration of custom applications for secure authentication.
Supports OAuth, OpenID, and SAML authentication for third-party and custom apps.
Identity Federation
Federate with third-party identity providers such as Google, Facebook, and other SAML-based providers.
Enables external users (B2B collaboration) to access resources securely.
Role-Based Access Control (RBAC) and Granular Permissions
Fine-grained access control with built-in and custom roles.
Assign access to specific Azure resources or applications based on job functions.
Security Defaults and Zero Trust Architecture
Enforces baseline security policies, such as MFA for all users.
Integrates with Microsoft Defender for Identity for continuous security assessment.
Managed Identity for Azure Resources
Provides secure, passwordless authentication for Azure services (e.g., Virtual Machines, App Services) without storing credentials.
Access to Microsoft Cloud Services
Direct integration with Microsoft 365, Dynamics 365, and other Microsoft cloud solutions without requiring on-prem infrastructure.
Cross-Platform Device Management (Intune Integration)
Works with Microsoft Intune to enforce compliance policies and manage device access based on compliance status.
B2B and B2C Identity Management
Azure AD B2B (Business-to-Business): Secure collaboration with external partners.
Azure AD B2C (Business-to-Consumer): Provides identity services for customer-facing applications.
Built-in Compliance and Reporting Tools
Pre-configured reports for login activities, risky sign-ins, and security trends.
Helps meet compliance requirements such as GDPR, HIPAA, and ISO standards.
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.
The Top 10 Identity Threats and the Critical Role of Entra ID Backups
Lessons from "How Hackers Persist & Privesc in Microsoft 365"
Veeam: 5 Reasons Why You Should Be Backing Up Microsoft Entra ID
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.