What is Microsoft Entra ID?
Microsoft Entra ID is Microsoft's cloud-based identity and access management service, and at the same time the new name for Azure Active Directory (Azure AD). It is Entra ID that decides who can sign in to Microsoft 365, Azure and thousands of integrated apps, and that enforces security requirements such as MFA, Single Sign-On and Conditional Access.
If you use Microsoft 365, you are already using Entra ID: every user account, every group and every single sign-in passes through the service. In other words, it is the foundation beneath your entire Microsoft environment, whether or not you have ever opened the admin portal.
Why did Azure AD change its name to Entra ID?
In 2023, Microsoft gathered its identity products under the Entra family, and Azure AD was renamed Microsoft Entra ID. The purpose was to separate the identity platform from the Azure brand. After all, Entra ID is used far more broadly than Azure, for example by companies that only have Microsoft 365. Only the name has changed: features, licences, APIs and configuration are the same, so everything that applied to Azure AD still applies. If you are searching for "Azure AD vs. Entra ID", the answer is simply: it is the same product. The details are documented at learn.microsoft.com.
What does Entra ID cost (P1/P2)?
Entra ID comes in three tiers, and the difference lies in the security features:
- Free is included with all Microsoft 365 and Azure subscriptions: users, groups, basic MFA and SSO for cloud apps.
- P1 adds Conditional Access, dynamic groups, self-service password reset for hybrid environments and application proxy. It is included in Microsoft 365 Business Premium, among others.
- P2 adds risk-based protection (Identity Protection), Privileged Identity Management for time-limited admin rights, and access reviews.
For most small and medium-sized businesses, the P1 tier is the practical minimum, because Conditional Access is where the real security governance happens.
Entra ID and Conditional Access
Conditional Access is Entra ID's policy engine: rules that evaluate who is signing in, from where, on which device and with what risk, and then require MFA, block access or place requirements on the device. Typical policies: require MFA for everyone, block legacy protocols, require a compliant device for access to sensitive data and block sign-ins from countries you never operate in. It is also Conditional Access that, in practice, carries a Zero Trust strategy.
How Entra ID relates to MFA and SSO
Entra ID is where MFA and SSO are configured and enforced: the user signs in once, proves their identity with two factors, and Entra ID then issues tokens to all the apps the user has access to. The result is fewer passwords, central control and one place to shut off access when an employee leaves.
How MI Support IT can help
We configure Entra ID securely as part of your Microsoft 365 and Azure environment: licensing advice, Conditional Access policies, MFA rollout and ongoing operations. If you want your identity platform under control, contact us.