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What is Azure Active Directory?

Azure Active Directory, commonly abbreviated to Azure AD, is Microsoft's cloud-based identity and access management platform, now officially renamed Microsoft Entra ID. The underlying service is unchanged, managing user sign-in, security policies and access control across Microsoft 365 and other connected applications, regardless of which name is used to refer to it.

How Azure Active Directory works

Every user, group and device in a Microsoft 365 environment is represented within Azure AD or Entra ID. It manages sign-in for Microsoft 365 services and any other applications configured to use it for authentication, applying security policies such as multi-factor authentication and Conditional Access along the way. Businesses with existing on-premises infrastructure often connect their local Active Directory to it for a hybrid identity setup.

Azure Active Directory in practice

  • A business with an existing on-premises Active Directory connects it to Azure AD through Entra Connect, allowing staff to use the same credentials for both local network access and Microsoft 365.
  • An IT team configures multi-factor authentication within Azure AD to protect against compromised passwords.
  • A growing business sets up single sign-on through Azure AD so staff use one set of credentials across Microsoft 365 and several connected third-party applications.
  • A company migrating away from legacy on-premises infrastructure moves to a cloud-only Azure AD setup as part of a wider move to Microsoft 365.

How Advantage helps with identity and access management

Advantage configures and manages identity infrastructure, whether referred to as Azure Active Directory or its current name Microsoft Entra ID, as part of every Microsoft 365 and cyber security engagement.

Talk to Advantage about identity and access security →

Frequently asked questions

Is Azure Active Directory still the correct name to use?

Microsoft officially renamed Azure Active Directory to Microsoft Entra ID in 2023. The service is the same, but new documentation, licensing and product references now use the Entra ID name. The older name is still widely recognised and used informally.

Do I need to do anything to move from Azure AD to Microsoft Entra ID?

No migration is required. The rename was a branding change rather than a change to the underlying technology, so existing configurations, licensing and functionality continued working exactly as before under the new name.

What is the difference between Azure Active Directory and on-premises Active Directory?

On-premises Active Directory, often called Windows Server Active Directory, runs on a business's own servers and is designed for traditional, network-based environments. Azure Active Directory, now Microsoft Entra ID, is a cloud-native identity service designed for cloud applications like Microsoft 365, though the two can be connected through Entra Connect (formerly Azure AD Connect) for a hybrid setup.