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Authentication: SSO, MFA, passwordless, and Conditional Access

Authentication answers who you are. Authorization, covered in the next lesson, answers what you are allowed to do.

Core authentication concepts

Concept Meaning Exam clue
Authentication Verify identity, such as with a password, certificate, or token Sign-in
Single sign-on (SSO) Sign in once and access multiple applications without re-entering credentials One login for many apps
Multi-factor authentication (MFA) Requires two or more verification methods Password plus phone, authenticator app, or FIDO key
Passwordless Replace passwords with stronger factors such as FIDO2 keys or the Microsoft Authenticator app No password in the primary flow
External identities Guest users or partners from other organizations B2B collaboration
Conditional Access Policy engine that allows, blocks, or requires extra steps based on signals Require MFA when sign-in is risky or from outside the corporate network

Single sign-on (SSO)

SSO improves user experience and reduces password fatigue by federating or synchronizing identity to multiple applications.

Exam clue: one corporate login for Azure, Microsoft 365, and SaaS apps → SSO with Microsoft Entra ID.

Multi-factor authentication (MFA)

MFA adds a second factor beyond something you know, such as:

  • something you have (phone, token, or authenticator app);
  • something you are (biometric verification on supported devices).

Exam rule: reduce account takeover risk → MFA.

Passwordless authentication

Passwordless methods reduce phishing and password reuse risks. Examples include FIDO2 security keys and passwordless phone sign-in.

Passwordless is not the same as "no authentication." It replaces the password with stronger verification.

External identities

Microsoft Entra B2B collaboration lets external users from other tenants or identity providers access your applications and resources as guests.

Exam clue: partner vendor needs access to a shared app without creating a duplicate account in your HR system → external identity / B2B guest.

Conditional Access

Conditional Access policies evaluate signals such as user, location, device state, application, and risk level, then enforce requirements such as:

  • require MFA;
  • block legacy authentication;
  • allow access only from compliant devices;
  • require an approved client app.

Conditional Access is the if/then engine for sign-in and session control.

Example policy logic:

IF user is admin AND sign-in is from an unknown location
THEN require MFA AND block legacy auth clients

Scenario

Remote workers must use an authenticator app in addition to a password when signing in from outside the office network.

Best fit: Conditional Access requiring MFA based on location.

Scenario

Executives want to sign in to Microsoft 365 and a custom app with one set of corporate credentials.

Best fit: SSO through Microsoft Entra ID.

Exam clues

  • Verify identity → authentication, not RBAC.
  • Second factor required → MFA.
  • Policy based on location, device, or risk → Conditional Access.
  • Guest partner access → external identities / B2B.

Official references