Entra ID - User Identity Types

Introduction

Microsoft Entra ID (formerly Azure Active Directory) offers various user identity types to manage access and authentication in cloud environments.

This post explores the three primary user identity types in Microsoft Entra ID: Cloud Identity, Synchronized Identity, and Guest Identity, highlighting their characteristics, use cases, pros, and cons.

1. Cloud Identity

Definition:

• A cloud identity is created and managed directly within Microsoft Entra ID (formerly Azure AD) without the need for any on-premises infrastructure.

Characteristics:

• Creation: Identities are manually created in Microsoft Entra or through automated provisioning from cloud applications.
• Management: All identity management is done in the cloud.
• Authentication: Handled directly by Microsoft Entra, leveraging Azure AD authentication methods like MFA, SSO, and Conditional Access.
• Use Case: Ideal for organizations that are entirely cloud-based or have no on-premises Active Directory.

Pros:

• Simple setup and management.
• No dependency on on-premises infrastructure.
• Full use of Microsoft Entra cloud-native features.

Cons:

• Limited integration with on-premises resources.
• Not ideal if hybrid scenarios or legacy applications require on-premises authentication.

2. Synchronized Identity

Definition:

• Synchronized identity involves connecting on-premises Active Directory (AD) with Microsoft Entra ID using tools like Azure AD Connect.

Characteristics:

• Synchronization: User accounts, groups, and optionally passwords are synchronized from on-premises AD to Microsoft Entra.
• Authentication: Can be cloud-based (password hash synchronization or pass-through authentication) or remain on-premises (federated authentication).
• Management: User identities are managed on-premises, with changes synced to the cloud.
• Use Case: Perfect for hybrid organizations needing both cloud and on-premises resource access.

Pros:

• Seamless user experience for accessing both on-premises and cloud resources.
• Centralized identity management.
• Supports advanced hybrid scenarios, including legacy app integration.

Cons:

• Requires on-premises infrastructure and management.
• More complex setup and maintenance, particularly with federated authentication.

3. Guest Identity

Definition:

• A guest identity is an external user (e.g., partners, vendors, or customers) who is invited to collaborate within your organization’s Microsoft Entra environment using their existing credentials.

Characteristics:

• Authentication: Guests sign in using their own identity provider (e.g., Microsoft account, Gmail, or another Entra ID tenant).
• Management: Invited and managed through B2B (Business-to-Business) collaboration features.
• Permissions: Controlled through access policies, roles, and Conditional Access within Microsoft Entra.
• Use Case: Ideal for enabling secure external collaboration in Microsoft 365, Teams, and other cloud applications.

Pros:

• No need to create and manage separate accounts for external users.
• Simplifies collaboration while maintaining security and compliance.
• Guest access can be tightly controlled through governance policies.

Cons:

• Limited access compared to full internal identities.
• Potential security risks if not managed properly.

Summary: When to Use Each Identity Type

Best Practices

1. Cloud Identity:
   • Use for small businesses or cloud-native startups with no legacy systems.
   • Leverage Conditional Access and MFA for enhanced security.
2. Synchronized Identity:
   • Ideal for hybrid scenarios and organizations transitioning to the cloud.
   • Regularly monitor Azure AD Connect for sync health.
   • Use password hash sync or pass-through authentication for simplified management.
3. Guest Identity:
   • Set up access reviews and policies to prevent over-permissioning.
   • Monitor guest activities through Microsoft Entra audit logs.
   • Implement governance policies to manage guest lifecycle.

Conclusion

Understanding the different user identity types in Microsoft Entra ID is crucial for designing a secure and efficient identity management strategy. By choosing the right identity type based on your organization’s needs, you can ensure seamless access to resources while maintaining robust security controls.