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Microsoft Entra ID and Domain Services

Identity is the front door to Azure and Microsoft cloud services. AZ-900 expects you to distinguish the directory, domain services, and what each one provides.

Microsoft Entra ID

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

It provides:

  • a directory of users, groups, and devices;
  • authentication for users and applications;
  • single-tenant and multi-tenant application support;
  • integration with Microsoft 365, Azure, and thousands of SaaS apps.

Exam rule: identity directory in Microsoft cloud → Microsoft Entra ID.

Every Azure subscription is associated with a Microsoft Entra tenant. Users and groups in that tenant can be granted access to Azure resources, usually through role assignments.

Entra ID versus on-premises Active Directory Domain Services

Feature Microsoft Entra ID Traditional AD DS on a VM
Primary design Cloud identity for users, apps, and devices Windows domain with Kerberos, LDAP, and Group Policy
Common use Sign-in to Azure, Microsoft 365, and SaaS Legacy domain-joined servers and apps
Protocol emphasis Modern auth such as OAuth, OpenID Connect, SAML Classic domain protocols

Entra ID is not a full lift-and-shift replacement for every legacy domain controller scenario.

Microsoft Entra Domain Services

Entra Domain Services provides managed domain services in Azure without deploying and patching your own domain controllers.

It offers:

  • domain join for Azure VMs;
  • LDAP, Kerberos, and NTLM authentication;
  • Group Policy support in a managed domain;
  • compatibility for apps that need traditional domain services in the cloud.

Use Domain Services when the scenario mentions:

  • lift-and-shift apps that require domain join;
  • LDAP or Kerberos in Azure without managing DC VMs;
  • Group Policy in a managed Azure domain.

Exam clue: need domain services in Azure without operating domain controller VMs → Microsoft Entra Domain Services.

Scenario

A company moves line-of-business servers to Azure. The apps require domain join and Kerberos, but the team does not want to manage domain controller VMs.

Best fit: Microsoft Entra Domain Services.

Scenario

Employees need one identity to sign in to Azure portal, Microsoft 365, and a custom SaaS app.

Best fit: Microsoft Entra ID.

Exam clues

  • Cloud identity directory → Entra ID.
  • Managed domain join in Azure without DC VMs → Entra Domain Services.
  • Who the user is → identity service; what they can do in Azure → RBAC (covered in the next lessons).

Official references