Why Microsoft Entra ID is the right direction for your Active Directory environment

Traditional Active Directory (AD) solutions often fall short of meeting the demands of a global, remote-first workforce. While AD has served organizations well for managing users and on-premises resources, its limitations have become apparent as the IT scope has expanded beyond just user management to encompass applications, devices, and cloud environments. Legacy AD systems were not designed with the flexibility needed for today’s hybrid and cloud-native setups.

A new identity management solution like Microsoft Entra ID might be what is needed for these ever-changing circumstances. With advanced security features, enhanced integration capabilities, and support for hybrid and cloud environments, Entra ID provides a modern solution for organizations looking to future-proof their identity strategy. This shift from traditional AD to Entra ID is a strategic transformation that combines robust security with seamless access, empowering teams to work securely from anywhere while meeting today’s complex IT demands.

In this article, we’ll dive into the key distinctions between AD and Entra ID and why embracing Entra ID is essential for securing your organization’s future.

What is Entra ID?

Entra ID, previously known as Azure Active Directory, is a cloud-based identity and access management service that enables organizations to manage user identities and secure access to various resources, including Microsoft 365 applications like Teams, OneDrive, and SharePoint. Entra ID provides a comprehensive solution for managing user identities in a cloud-centric world, allowing for seamless integrations with external resources while enhancing security.

Similarities between Entra ID and AD

Both Entra ID and AD share a common goal: managing user identities and access across an organization. Their main similarities include:

• User life cycle management: Both systems are created to facilitate the management of user accounts throughout their life cycles, from creation to deletion. However, Entra ID offers the ability to automate this process with life cycle workflows , while this has to be done manually in AD.
• Policy-based controls: Organizations can enforce policies across their userbase—using Group Policy Objects (GPOs) in AD and policies in Entra ID—to ensure compliance and security.

How is Entra ID different from AD?

The most significant difference lies in the architectures used for Entra ID and AD. Entra ID is entirely cloud-based and hosted by Microsoft, eliminating the need for organizations to maintain physical servers or infrastructures. In contrast, AD requires on-premises domain controllers, regardless of whether it's hosted by the organizations themselves or a third-party cloud service with AD Domain Services, which necessitates ongoing maintenance and updates.

There are some core benefits to Entra ID that result from these differences:

• No replication needed: Entra ID eliminates the need for replication across servers, reducing complexity, redundancy, and potential points of failure.
• Lower hosting costs: Entra ID only requires you to pay a subscription for the services you use. However, with AD, you have to cover the costs of maintaining and updating the servers that run it. If they are hosted online to get the same level of access as Entra ID, they require more money to keep them running.
• Safer authentication protocols: Entra ID supports modern authentication protocols such as SAML, OAuth, and OpenID Connect, enhancing security compared to AD's older Kerberos and NTLM protocols.
• Immediate changes: Changes made in Entra ID are applied almost instantly, whereas updates in AD can take hours due to replication delays.
• Continuous updates with minimal downtime: Being a cloud service allows Entra ID to receive regular updates without significant downtime for users.
• Scalability: Organizations can easily scale their identity services with Entra ID without the limitations associated with physical hardware.

What does Entra ID offer?

Entra ID provides a comprehensive suite of features designed to enhance security, streamline identity management, and facilitate user access across various applications and environments. Below is an in-depth look at each key offering of Entra ID and how it can prove useful for your organization.

• Enhanced security with Microsoft Entra MFA
• Cloud applications and optimized access
• Granular administrative controls
• Hybrid AD management and synchronization

Enhanced security with Microsoft Entra MFA

Multi-factor authentication (MFA) is a cornerstone of Entra ID's security framework, requiring users to provide multiple forms of verification to access resources. This significantly mitigates the risk of unauthorized access.

• Phishing resistance: According to Microsoft, MFA blocks 99.9% of identity-based attacks, making it a highly effective tool against phishing. Attackers often rely on compromised credentials, but MFA creates an additional barrier by requiring users to verify their identities through additional factors, such as mobile authentication apps or biometric data. This significantly reduces the likelihood of unauthorized access, even if passwords are compromised.
• Conditional access: MFA can be enforced through conditional access policies, allowing organizations to require additional verification based on specific conditions such as the user's location, device's compliance, or application's sensitivity.
• Device and application MFA: Organizations can enforce MFA not only for user logins but also for devices and applications accessing sensitive corporate resources. This ensures that all access points are secure.

Cloud applications and optimized access

Entra ID simplifies secure access to both internal and external applications through its robust capabilities.

• Custom app integrations: Organizations can integrate proprietary applications with Entra ID thanks to widely used security protocols such as OAuth and SAML, enabling secure authentication and authorization processes tailored to organizations' specific needs.
• Microsoft Entra SSO: Microsoft Entra SSO allows users to log in once and gain access to multiple applications without needing to reenter credentials. This feature improves the user experience by reducing password fatigue and streamlining access management.
• License management: With Entra ID, organizations can efficiently control app access and manage costs by allocating specific app licenses only to users who need them . Administrators can monitor app usage and license assignments through activity reports to identify underutilized or inactive licenses. By reassigning or deactivating unused licenses, businesses can save costs while ensuring that access is limited to users who genuinely need it, reducing both expenses and potential security risks.

Granular administrative controls

Entra ID provides flexible administrative controls that are not present in AD, allowing organizations to tailor permissions according to their specific requirements.

• Custom admin roles: Administrators can define roles that align with organizational structures, granting precise permissions tailored to different teams or functions. This flexibility helps organizations maintain security while empowering users.
• App-specific roles: Role assignments can be based on individual applications, ensuring that users only have access to the tools necessary for their job functions. This minimizes the risk of unauthorized access to sensitive information.
• Guest user controls: Organizations can effectively manage external users by setting specific permissions and access levels. This capability is crucial for maintaining security while collaborating with partners or clients.
• Activity reports: Entra ID offers robust activity reporting features, giving administrators visibility into user actions and access patterns so they can identify unusual or potentially risky behavior and ensure that all access aligns with organizational policies. Some of the notable reports include ones on sign-in logs, risky sign-ins, and license utilization, and more information can be obtained from audit logs.
• Access reviews: Regular audits of user access rights help ensure compliance and security by allowing administrators to review and adjust permissions as needed. This proactive approach helps organizations stay compliant with regulatory requirements.

Hybrid AD management and synchronization

Entra ID excels in hybrid environments by providing tools for managing identities across both on-premises and cloud resources.

• User synchronization: Organizations can sync user accounts between their on-premises AD and Entra ID, ensuring consistency across platforms. This synchronization simplifies user management and enhances security.
• A backup of domain data: Entra ID can act as a backup for AD user data, providing essential redundancy. By syncing data between on-premises AD and Entra ID, organizations can ensure that identity information is protected in the cloud, reducing reliance on physical infrastructure. This backup minimizes downtime and protects against data loss in case of on-premises hardware failure, offering a robust disaster recovery solution.
• Device management with MFA: Entra ID offers robust tools for managing and securing devices, providing organizations with control over which devices can access corporate resources. This capability covers both corporate and personal devices. You can track device health and apply conditional access and DLP policies based on the device's risk. Entra ID also supports remote device configuration, application deployment, and security policy enforcement along with reports that offer insights into device access patterns, compliance statuses, and potential risks.

Comparison table: Entra ID vs. AD

Enhancing your Entra ID administration with M365 Manager Plus

ManageEngine M365 Manager Plus is a comprehensive administration and security solution for Microsoft 365. It is used for reporting, managing, monitoring, auditing, and creating alerts for critical activities in your Microsoft 365 environments. You can easily manage users, groups, contacts, mailboxes, teams, and sites in bulk and automate management processes—all without any PowerShell scripting.

There are also other benefits to using M365 Manager Plus to manage and monitor your Microsoft 365 environment:

• Gain a thorough understanding of not just your Entra ID environment but also Exchange Online, SharePoint Online, OneDrive for Business, and other Microsoft 365 services with detailed reports and intuitive visualizations.
• Filter your reports and save them as custom reports that you can access in just a few clicks.
• Export reports generated in M365 Manager Plus not just in CSV format but also in other presentable formats, such as HTML, PDF, and XLSX.
• Delegate granular permissions to technicians without elevating their Microsoft 365 privileges and create custom roles with any combination of reporting, management, and auditing tasks. Keep tabs on even the most granular user activities in your Entra ID and Microsoft 365 environments.
• Configure alert profiles in M365 Manager Plus to get notified of specific activities that take place outside of business hours or occur at unusual frequencies.
• Monitor the health and performance of Microsoft 365 features and endpoints around the clock.