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Microsoft Entra ID (Azure AD)

Entra ID is Microsoft's cloud identity platform. It provides authentication, RBAC for Azure resources, SSO for enterprise apps, and B2B/B2C identity scenarios.

azuresecurityiamidentityentra-id

What is Microsoft Entra ID (formerly Azure AD)?

Microsoft Entra ID (formerly Azure Active Directory) is Microsoft's cloud-based identity and access management service. It handles:

  • Authentication and SSO for Microsoft 365, Azure, and thousands of third-party SaaS apps
  • Azure RBAC - who can do what on Azure resources
  • Machine identities (Managed Identities) for Azure services
  • External identities (B2B for partners, B2C for customers)

Tenants and Subscriptions

  • Tenant: a dedicated Entra ID instance for an organisation. Created when you sign up for Microsoft services.
  • Subscription: a billing and resource container tied to a tenant. One tenant can have multiple subscriptions.
  • Management Groups: hierarchical containers for subscriptions. Apply policies and RBAC at scale across many subscriptions.
Tenant: archready.io
  └── Management Group: Production
        └── Subscription: archready-prod
              └── Resource Group: archready-rg
                    └── Resources (VMs, DBs, etc.)

Azure RBAC

Role assignments have three parts: principal + role + scope.

  • Principal: user, group, service principal, or managed identity
  • Role: collection of permissions (e.g., Contributor, Reader, Storage Blob Data Owner)
  • Scope: management group, subscription, resource group, or individual resource

Built-in roles: Owner (full access + manage access), Contributor (full access, no RBAC), Reader (read-only). Use custom roles for least privilege.

RBAC is inherited downward - a role at subscription scope applies to all resource groups and resources within.

Managed Identities

Azure's answer to service accounts / IAM roles - machine identities for Azure services without managing credentials.

  • System-assigned: tied to a specific resource. Created and deleted with the resource. One-to-one.
  • User-assigned: independent resource, assignable to multiple services. Lifecycle managed separately.

Pattern: App Service / Azure Function / AKS Pod -> Managed Identity -> Storage Blob Data Reader role on a Storage Account -> reads blobs without connection strings or keys in code.

Service Principals

Application identity in Entra ID. When a CI/CD pipeline (GitHub Actions, Azure DevOps) needs to deploy to Azure, it uses a service principal. Authenticate via client secret (avoid) or federated credentials (OIDC - no secrets, equivalent of AWS OIDC for GitHub Actions).

Conditional Access

Policies that control access based on conditions:

  • Require MFA for all admin logins
  • Block access from outside specific countries
  • Require compliant device for access to sensitive apps
  • Risk-based: block or step-up authentication when sign-in risk is detected

Conditional Access requires at least Entra ID P1 licence.

B2B and B2C

  • B2B (Guest Access): invite partner/vendor users into your tenant as guests. They authenticate with their own identity (Microsoft, Google, SAML IdP). Use for cross-org collaboration.
  • B2C (Customer Identity): separate tenant type for consumer-facing apps. Customisable sign-up/sign-in flows, social logins (Google, Facebook), custom branding. Scales to millions of users.

Entra ID vs AWS IAM

Entra IDAWS IAM
Primary useAuthentication + Azure RBACAWS API authorisation
Human identityYes (SSO, MFA, Conditional Access)Limited (console users)
Machine identityManaged Identity, Service PrincipalIAM Role
External identityB2B / B2CIAM Identity Center
RBAC scopeTenant -> MG -> Sub -> RG -> ResourceAccount -> service hierarchy

Interview Angle

Entra ID is central to every Azure architecture. Key points: Managed Identities instead of connection strings (system-assigned for single-resource, user-assigned for shared identity), RBAC at the resource group level for least privilege, Conditional Access for zero-trust security posture. For CI/CD: federated credentials (OIDC) over service principal secrets - no expiring credentials to rotate.

How does this compare to the other clouds?

See the side-by-side comparison: AWS IAM vs Azure Entra ID vs Google Cloud IAM.

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