TL;DR: Active Directory is Microsoft’s traditional on-prem directory service for managing users, devices, and access inside a local network, while Microsoft Entra ID is its cloud-based identity platform for managing authentication and access across Microsoft 365, cloud apps, and hybrid environments. In short, AD handles local network access, and Entra ID handles modern cloud and remote access.
Microsoft Entra ID, formerly Azure Active Directory, is Microsoft’s cloud-based identity and access management platform. It helps IT teams manage authentication, user identities, and access to Microsoft 365, SaaS apps, and hybrid resources.
At their heart, both Active Directory and Microsoft Entra ID aim to do the same thing: keep identities and access under control. But let’s be real — their approaches are different because the demands of today’s hybrid, cloud-driven workplaces require it.
What is Microsoft Entra ID?
Microsoft Entra ID is a cloud-based identity and access management (IAM) service from Microsoft. It supports secure user authentication, identity governance, and access control across cloud and hybrid environments.
A common shorthand is that Entra ID is Active Directory for the cloud, but that description is incomplete. Entra ID is an identity platform built for cloud authentication, conditional access, identity governance, and hybrid access control.
Spicy take: Comparing Active Directory to Microsoft Entra ID is like comparing a 2001 Subaru Outback to a Tesla.
Active Directory is reliable and capable of letting you do what you need to do to configure your environment. The important stuff is there. It’s served many sysadmins well through the years.
But you can make (or destroy) the world in Microsoft Entra ID.
You have an overwhelming number of tools at your disposal when you log in to Microsoft Entra. Finding the basics in Microsoft Entra ID isn’t the same navigational process you could do blindfolded in Active Directory. But just like learning how to use the fancy displays in a Tesla, once you figure out what lives where, Microsoft Entra ID is a powerful tool.
It’s also worth explicitly stating that Microsoft Entra ID is Microsoft’s entry into the identity-as-a-service (IDaaS) space. We’ll get to that in just a moment.
Why did Azure Active Directory become Microsoft Entra ID?
Azure Active Directory was renamed Microsoft Entra ID in July 2023 to align it with Microsoft’s broader Entra identity product line. The product itself did not fundamentally change, but the name changed to fit Microsoft’s identity and access branding.
What is Active Directory?
Active Directory is any sysadmin’s old friend. It’s a Windows domain services tool (based on Lightweight Directory Access Protocol, or LDAP) that allows you to set permissions and make groups for the users and assets in your environment. Using LDAP enables you to control the sharing of network resources.
For example, when a user logs on to their work computer, they enter credentials that Active Directory (or more specifically, the domain controller) checks to make sure the user ID matches the user attributes stored in Active Directory. If the credentials are valid, the domain controller gives the login a thumbs up, letting the user access their desktop.
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What’s the difference between Active Directory and Microsoft Entra ID?
The main difference is that Active Directory manages identity and access inside an on-prem Windows domain, while Microsoft Entra ID manages identity and access across cloud apps, Microsoft 365, and hybrid environments. Active Directory is domain-centric, while Entra ID is identity-centric.
Need a visual? Microsoft produced a handy table to describe some of the key differences between the two. (Clear as mud? That's “chef’s kiss” in Microsoft!)
For example, let’s go back to our password/MFA scenario. Both Microsoft Entra ID and Active Directory offer credential management — but in different ways. Active Directory works with your on-prem domain controller to verify passwords or certificates.
Microsoft Entra ID, on the other hand, offers a few more security measures for credential management. It supports MFA and even passwordless logins (such as through an authentication app) to make logging in more secure. You can also configure more sophisticated parameters around passwords with Microsoft Entra ID. (No more solarwinds123 passwords for us. Yay!)
You shall not pass
Our on-prem friend, Active Directory, is your friendly but strict neighborhood nightclub bouncer (physical layer of security). He checks the IDs (user attributes) of everyone who wishes to enter against the approved guest list (domain controller). If they match, the door opens (you can log in). If they don’t match, you’re turned away (you can’t log in). And if they don’t match enough times, you might get kicked to the curb (locked out of your account).
Compare that to the poor bouncer who services the global nightclub (Microsoft Entra ID). Because users may not be physically present (they're remotely logging in), the bouncer needs a few more security checks (methods of authentication) to make sure folks are who they say they are. His brass knuckles (geolocation) help him spot and quickly turn away unusual guests trying to enter from a weird location (the employee from Ireland tries to connect with an IP address from New York). His grizzly Rottweiler (conditional access policies) helps him sniff out oddities that aren’t allowed in the club (Windows 2000 and below). And his stylish earpiece (compliance policies) helps him listen to see who gives the right password to enter (not using password123 as your password).
Active Directory versus Microsoft Entra ID FAQ
Why did Microsoft rebrand Azure Active Directory to Microsoft Entra ID?
Microsoft rebranded Azure Active Directory to Microsoft Entra ID to maintain consistency with its Entra product line, released in 2022.
Now that you’ve spit your coffee out, let me elaborate. Microsoft bundles all its identity and access management features under the Entra product line, so it changed the name of Azure Active Directory to Microsoft Entra ID to minimize confusion. (I know, I know.)
Is Azure Active Directory the same as Active Directory?
No, Azure Active Directory is not the same as Active Directory. (Stay with me here!) Azure Active Directory (now Microsoft Entra ID) s a Microsoft product with cloud capabilities. Active Directory, on the other hand, is an on-prem tool used to configure access within a local network (e.g., giving users access to a local printer).
For example, you can set user permissions for Microsoft 365 using Azure Active Directory — but not with Active Directory, unless you use a syncing tool (AD Connect) that helps Azure Active Directory and Active Directory “talk” to each other.
What are the differences between Microsoft Entra ID and Azure Active Directory?
According to Microsoft, the only difference between Microsoft Entra ID and Azure Active Directory is the name. What used to be known as Azure Active Directory is now Microsoft Entra ID.
(Only the little troll who changes the names of everything weekly knows the real answer, though.)
PDQ Connect and Microsoft Entra ID
For teams managing hybrid identity environments, PDQ Connect integrates with Microsoft Entra ID to help unify device and directory visibility. That makes it easier to manage endpoints tied to both cloud identity and traditional Active Directory environments.
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