Active Directory and Entra ID: Differences for Beginners

Introduction

Microsoft Active Directory (AD) and Entra ID (formerly known as Azure Active Directory) are both identity management systems provided by Microsoft, but they serve different purposes and operate in different environments. Below is a breakdown of the differences between them:

1. Deployment Model

• Active Directory (AD)
  • On-premises solution that manages local network resources like computers, printers, users, and applications.
  • Requires on-premises servers and domain controllers.
  • Mainly designed for internal enterprise networks.

• Entra ID (Azure AD)
  • Cloud-based solution, specifically designed for cloud applications and services.
  • Does not require on-premises infrastructure.
  • Works for cloud-based applications and services such as Microsoft 365, and other SaaS applications.

2. Authentication Protocols

• Active Directory
  • Uses Kerberos and NTLM for authentication.
  • Ideal for environments where Windows Server and Windows workstations are predominant.

• Entra ID (Azure AD)
  • Uses OAuth 2.0, OpenID Connect, and SAML for modern cloud-based authentication.
  • Supports multi-factor authentication (MFA), single sign-on (SSO), and other modern security protocols for web-based apps.

3. Primary Use Case

• Active Directory
  • Used primarily for on-premises identity and access management.
  • Manages access to internal network resources like file shares, printers, and applications hosted on company servers.

• Entra ID (Azure AD)
  • Used for managing cloud-based identities and providing access to cloud services, such as Microsoft 365, Azure, and other third-party cloud applications.
  • Provides identity and access management for remote users and cloud apps.

4. User Management

• Active Directory
  • Typically manages domain-joined devices and users within a physical or virtual network.
  • User accounts are tied to a Windows domain.

• Entra ID (Azure AD)
  • Manages users’ access to cloud-based services, often via web portals.
  • Offers capabilities like self-service password reset and application management for cloud applications.

5. Device Management

• Active Directory
  • Primarily manages on-premises computers and servers that are joined to the AD domain.

• Entra ID (Azure AD)
  • Can manage cloud-connected devices and integrate with Microsoft Intune for mobile device management.
  • Supports devices that are not domain-joined but registered in the cloud for access to services.

6. Integration with Cloud Services

• Active Directory
  • Limited cloud integration, though it can integrate with cloud services via Azure AD Connect to sync on-premises identities with the cloud.

• Entra ID (Azure AD)
  • Natively integrated with cloud services like Microsoft 365, Azure, and other SaaS applications.

7. Security Features

• Active Directory
  • Built-in security protocols for securing internal resources but lacks some modern security features for cloud services.

• Entra ID (Azure AD)
  • Built with modern security features like Conditional Access, Multi-factor Authentication (MFA), Risk-based sign-in detection, and Identity Protection.

Summary:

Conclusion

In general, AD is best suited for traditional, on-prem environments, while Entra ID (Azure AD) is optimized for managing identities and access to cloud services and modern SaaS applications. Many enterprises use both, with hybrid solutions where Entra ID extends AD functionalities to the cloud.

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