In 2024, organizations are increasingly looking to modernize their identity and device management strategies. They are doing so by transitioning from on-premises Active Directory (AD) to Entra ID (Previously called Azure Active Directory (AAD)).
This move allows them to utilize a more efficient, cost-effective, and cyber-secure way to manage users, devices, and applications using the cloud.
Microsoft provides several platform options for integrating with Entra ID. Depending on your organizational needs, each approach has its benefits.
Some common approaches for integrating with Entra ID (Azure AD)
- Hybrid Approach: Integration of on-premises AD with Entra ID via Azure-AD Connect (still the most common approach for many organizations).
- Cloud-Only: Everyone works on devices, users and applications hosted in the cloud (ideal for organizations with no legacy infrastructure).
- Azure AD Domain Services (AAD DS): Extends Entra ID with domain controller-like services in the cloud for legacy apps that require NTLM or Kerberos authentication.
- AD Hosted in Azure: Running AD domain controllers in Azure VMs utilizing a hybrid identity model.
Each option has different advantages and challenges, but for many, the hybrid approach is a practical first step toward leveraging cloud services without having to eliminate their on-prem infrastructure.
READ: Identity & Access Management in Defense Industry
The Move Toward Cloud-Only Identity Management
Businesses are now migrating to fully cloud-based identity management, aspiring to eliminate the need for on-prem domain controllers. This cloud-only approach offers top-class security benefits and cost savings to organizations no longer tied to legacy infrastructure.
Third-party Cloud Directory services are undoubtedly a good option for many. Microsoft’s cloud ecosystem is here to offer proper seamless integration with Microsoft 365 and Azure services. That is why Microsoft services have now become the preferred choice for many modern organizations.
In fact, with cloud-native solutions like Microsoft Endpoint Manager (Intune) and Windows Autopilot, device management has become much simpler yet scalable.
Security and Risk Management in a Cloud-First World
Security is a top concern nowadays, especially for organizations lacking the resources to secure on-prem infrastructure like domain controllers.
Transitioning to AAD provides inherent security benefits such as:
- Multi-Factor Authentication (MFA)
- Conditional Access Policies
- Azure AD Identity Protection (Leveraging ML)
These features make cloud-native identity solutions more secure than traditional AD environments. However, this approach often requires significant resources to secure on-prem hardware.
AD Versus AAD: Understanding the Difference
No doubt, both AD & Entra ID offer similar purposes in identity management. But it’s essential to recognize the following key differences.
Entra ID is not a direct replacement for traditional AD but rather a different system built for modern cloud environments.
Here is a rundown of key differences between On-Prem AD and Entra ID
| Feature | On-Premises AD | Microsoft Entra ID |
| Deployment | On-premises; supporting Kerberos, LDAP, Group Policy, and NTLM. | Cloud-based; focusing on OAuth, SAML, and Single Sign-On (SSO) for web-based applications like Microsoft 365 and Azure. |
| Management | Local management | Centralized cloud management |
| Scalability | Can be limited by hardware and infrastructure | Easily scalable to meet growing needs |
| Cost | Initial hardware and software costs; ongoing maintenance | Subscription-based |
| Integration | Primarily for on-prem resources | Seamless integration with Microsoft 365 and Azure; other cloud services |
| Hybrid Identity | Core component of hybrid identity solutions | Supports hybrid identity scenarios |
| Security | Requires ongoing security updates and management | Robust security features like multi-factor authentication; conditional access; and threat protection |
| Example Use Cases | Managing access to on-premises servers, applications, and network resources | Managing access to cloud-based resources and applications |
However, for apps requiring NTLM/Kerberos, LDAP, Group Policies, etc, Azure AD Domain Services (AAD DS) can help extend these legacy services into the cloud.
READ: Mastering M&A – Essential Guide to Active Directory Migrations
Tools to Streamline the Migration to Entra ID
You can use the following tools and services to migrate quickly from on-premises AD:
- Azure AD Connect: Synchronizes identities between on-prem AD and Entra ID.
- Windows Autopilot: Automates and simplifies the setup of new devices in Entra ID.
- Microsoft Endpoint Manager (Intune): Delivers a comprehensive, unified endpoint management experience for both on-prem and cloud-connected devices within an organization.
- Azure AD Application Proxy: Typically used to provide access from Entra ID for legacy on-prem AD applications.
- Microsoft Defender for Identity: Protects hybrid environments from identity compromise-based threats.
How to Migrate from AD to AAD?
Moving from on-premises AD to Entra ID is no walk in the park. The direct 1:1 migration path does not exist due to the sheer backward-incompatible nature of two evolving platforms.
While Active Directory has been the tried and tested on-premises backbone for identity management in many organizations, Entra ID is a cloud-based alternative that makes it easier to manage identities while also offering better security, scalability, and flexibility.
The migration process typically follows a series of well-defined steps. But it might differ in stages for one organization to another.
Nonetheless, the general high-level flow of how organizations could approach this transition is as follows:
1. Initial Assessment & Planning
Every migration begins with understanding your current infrastructure. Identify any on-prem apps or devices dependent on AD and assess user needs.
Assess whether there are any legacy applications that may pose challenges. Do all users have devices ready to join AAD? In fact, gather all relevant information and decide whether to adopt a hybrid model or move entirely to the cloud.
2. Hybrid Mode Configuration (if needed)
How does that work for organizations that can’t move everything to the cloud right away? This involves synchronizing on-premises AD with AAD using tools like Azure AD Connect. This step allows you to manage both cloud and on-premises resources during the transition period.
3. Migrate User Profiles & Devices
Capture user profiles and application settings using the User State Migration Tool (USMT). However, if you have other preferences for data synchronization and backup options, you may have to rely less on USMT in modern migrations.
Disjoin devices from the on-prem domain and join with AAD using Windows Autopilot or Microsoft Endpoint Manager (Intune) to automate the onboarding process.
READ: Mastering Azure AD Connect – A Comprehensive Guide
4. Application Migration
Legacy apps relying on AD for authentication might also need reconfiguration. For apps that can’t be rewritten, Azure AD Application Proxy can provide secure access to on-prem apps in the hybrid setup.
5. Finish Migration
Once all users and devices have been migrated successfully, decommission the on-premises AD infrastructure by deleting Azure AD Connect & shutting down domain controllers.
Post-Migration: Monitoring & Optimization
Following the migration, you should be monitoring and tuning your Entra ID environment. With Azure Monitor, you can monitor the health and performance of your AAD setup to catch potential problems early. And remember to align your security policies with the necessities of cloud-based servers. Also, you can even add another layer of security to your identity and access management by implementing Zero Trust Architecture.
READ: Securing Exchange Online and SharePoint in a Hybrid Environment
Conclusion
Migrating from traditional on-premises Active Directory (AD) to Entra ID has now become an important strategic decision for SMEs and enterprises as it enables organizations leverage modern, cloud-based identity management solutions.
Implementing cloud-native identity solutions not only modernizes the enterprise system, but also mitigates risks from security threats. More potential benefits you get with this transition – multi-faceted security, scalability and cost-reduction are all reasons why enterprises need a cloud-native approach if they want a secure infrastructure.
That said, migration to Entra ID is a phased process and demands thoughtful planning with right tools. You may also decide to go for a hybrid environment where necessary for seamless migration. In the end, Entra ID brings every IAM capability to the table that businesses need to succeed in this cloud-first world. Contact our Entra ID specialists so that we can help you migrate and future-proof your identity management.
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