Microsoft Entra ID (formerly Azure Active Directory, or Azure AD) and Active Directory Domain Services (AD DS) are both identity and access management solutions provided by Microsoft, but they serve different purposes and are designed for different environments. Below is a comparison of the two:
1. Primary Purpose
Microsoft Entra ID (Azure AD)
Primarily designed for cloud-based identity management.
Supports cloud-based and hybrid environments, making it ideal for managing access to cloud resources, applications, and services (e.g., Microsoft 365, Azure).
Focuses on providing identity and access management for users accessing cloud services, SaaS applications, and web-based resources.
It is a global service that does not require on-premises infrastructure.
Active Directory Domain Services (AD DS)
Primarily designed for managing on-premises environments.
Handles user authentication and authorization in local networks (on-premises servers and workstations).
AD DS relies on traditional Active Directory domains to control access to local resources like file shares, printers, and networked applications.
It requires a Windows Server infrastructure running on-premises, although it can be integrated with Azure AD for hybrid scenarios.
2. Deployment Location
Microsoft Entra ID
Cloud-based service, hosted on Microsoft Azure.
Designed for cloud-first or cloud-only environments but supports hybrid scenarios with on-premises Active Directory.
Active Directory Domain Services (AD DS)
On-premises service that is typically deployed on Windows Server machines in a corporate network.
Domain Controllers (DCs) are hosted on physical or virtual servers within the on-premises network.
3. Authentication Method
Microsoft Entra ID
Supports modern cloud-based authentication protocols like OAuth 2.0, OpenID Connect, and SAML.
Supports multi-factor authentication (MFA) and Conditional Access for controlling user access based on context (location, device, etc.).
Enables single sign-on (SSO) for a variety of cloud and third-party applications (SaaS).
Active Directory Domain Services (AD DS)
Uses Kerberos and NTLM protocols for user authentication within an on-premises domain.
Focuses on traditional Windows-based authentication for domain-joined devices and services.
Does not natively support cloud-based authentication methods (though this can be added with Azure AD Connect for hybrid environments).
4. User Management
Microsoft Entra ID
Manages user identities and access to cloud applications.
Provides self-service capabilities for password reset, profile updates, and access requests.
Can be extended to manage external identities, such as B2B and B2C (partner and customer) access to cloud services.
Active Directory Domain Services (AD DS)
Manages users and devices in an on-premises network.
Handles Group Policy for device and user configuration, enforcing security settings, software deployments, etc.
Primarily used for managing access to local resources, such as file shares, printers, and internal applications.
5. Directory Structure
Microsoft Entra ID
Based on a flat directory structure. There are no organizational units (OUs) or domain hierarchies as seen in AD DS.
Users are typically organized into groups and can have access to applications and services.
Active Directory Domain Services (AD DS)
Uses a hierarchical directory structure with domains, organizational units (OUs), and group policies.
Provides fine-grained control over security policies, user access, and resource management within on-premises networks.
6. Integration and Hybrid Support
Microsoft Entra ID
Designed to integrate with cloud-first applications and cloud-based infrastructure.
Can integrate with on-premises AD DS through Azure AD Connect to enable hybrid environments where both cloud and on-premises resources are accessible.
Supports external identity providers for partner and customer access.
Active Directory Domain Services (AD DS)
Primarily used in on-premises environments to manage local resources and devices.
Can integrate with Azure AD using Azure AD Connect for hybrid environments, enabling seamless access to both on-premises and cloud resources.
Also integrates with legacy systems like Exchange Server and Windows Server File Services.
7. Access to Cloud Services
Microsoft Entra ID
Directly manages access to cloud services like Microsoft 365, Azure, and other SaaS applications.
Supports SSO for users to access cloud applications seamlessly.
Active Directory Domain Services (AD DS)
Does not directly manage access to cloud-based resources or services. For cloud services, integration with Azure AD or another cloud identity provider is needed.
8. Scalability
Microsoft Entra ID
Highly scalable, designed to handle large numbers of users and applications in a cloud environment.
No infrastructure management is required from the user, as it is fully managed by Microsoft.
Active Directory Domain Services (AD DS)
Scalable within the on-premises network.
Administrators must manage domain controllers, replication between them, and the infrastructure for scalability.
9. Security Features
Microsoft Entra ID
Provides advanced security features like Identity Protection, Risk-Based Conditional Access, and Identity Governance.
Continuously updated and maintained by Microsoft to address evolving security threats.
Active Directory Domain Services (AD DS)
Provides strong security features for on-premises networks, including Group Policy for security settings and Access Control Lists (ACLs) for resource permissions.
Security features are more manual in nature, and the environment requires regular updates and management.
Summary Table
| Feature | Microsoft Entra ID (Azure AD) | Active Directory Domain Services (AD DS) |
|---|---|---|
| Primary Purpose | Cloud-based identity management for applications and services | On-premises identity management for local resources |
| Deployment Location | Cloud (Azure) | On-premises (Windows Server) |
| Authentication | OAuth, OpenID Connect, SAML, MFA, Conditional Access | Kerberos, NTLM |
| User and Group Management | Cloud-based user and group management | On-premises user and group management |
| Directory Structure | Flat structure, no OUs | Hierarchical structure with OUs, domains, and policies |
| Integration | Integrates with on-prem AD and third-party apps | Primarily integrates with on-prem resources |
| Access to Cloud Resources | Direct access to cloud applications like Microsoft 365, Azure | Limited access to cloud, requires integration with Azure AD |
| Scalability | Highly scalable, cloud-native | Scalable within the on-prem network |
| Security Features | Advanced cloud security (Identity Protection, Conditional Access) | Security through Group Policy, ACLs, manual updates |
Conclusion
Microsoft Entra ID is a modern identity and access management solution tailored for cloud environments and hybrid IT infrastructures, making it ideal for organizations using cloud-based applications or looking to extend access to external users.
Active Directory Domain Services (AD DS), on the other hand, is best suited for managing traditional, on-premises environments and controlling access to local resources, though it can be extended to the cloud through hybrid setups.
Many organizations choose to use both in a hybrid setup, where Entra ID manages cloud resources and AD DS handles on-premises resources.
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