Azure Active Directory Explained

Azure Active Directory Explained

23 Aug 2024
Beginner
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16 min read

Azure Active Directory

Azure Active Directory (Azure AD), facilitates user identity management and security, expedites application access, and improves enterprise security. Managing user identities and securing resource access are more important than ever in today's digital environment. If you are an Azure developer and want to understand more about Azure Active Directory this article could help you.

In this Azure Tutorial, we will learn What the Azure Active Directory, its features, and its advantages for companies of all sizes, Windows AD vs. Azure AD, and so on. Also if you want to learn other fundamentals of Azure go through our Azure Fundamentals Course.

What is Azure Active Directory?

  • Azure Active Directory is a cloud-based directory and identity management solution that supports many tenants.
  • It integrates application access management, enhanced identity governance, and core directory services.
  • Azure AD offers a single identity management solution by extending features to the cloud and integrating seamlessly with on-premises Active Directory.

What is Azure Active Directory?

How does Azure Active Directory Work?

Azure Active Directory works in 8 different stages these are as follows:

1. Identity Management

  • User Accounts: Azure AD is responsible for managing user identities, encompassing partners, customers, and workers. Every user has a distinct account that is safely kept in the Azure AD directory, complete with a password and username (often their email address).
  • Groups: To make access control easier, users can be arranged into groups. Departments, organizational functions, and other factors may be used to determine a group's membership.
  • Roles: The rights and resources that users can access within the directory are determined by the roles that Azure AD defines.

2. Authentication

  • Azure AD's Single Sign-On (SSO) feature: It enables users to log in just once and access numerous apps without having to reenter their login information. This features both on-premises apps that are connected with Azure AD and cloud-based apps (such as Microsoft 365).
  • Multi-Factor Authentication (MFA): Azure AD is compatible with MFA, which requires users to give more proof than just a password (such as a phone code or biometric scan). This enhances security on top of it.

3. Authorization

  • Access Control: Role-based access control, or RBAC, is a technique used by Azure AD to limit access to resources and the actions that users are permitted to take. A user's role, group membership, or other factors may be taken into consideration when granting access.
  • Conditional Access: Policies pertaining to conditional access enable organizations to impose guidelines on the timing and mode of user access to resources. Access can be limited, for instance, according to the user's location, the condition of their device, or the application they are using.

4. Application Management

  •  Thousands of pre-integrated SaaS apps, such as Google Workspace, Salesforce, and ServiceNow, may be managed with Azure AD. Additionally, custom apps can be integrated with conventional protocols like OpenID Connect, OAuth, and SAML.
  • Application Proxy: Without exposing the program to the public directly, Azure AD Application Proxy enables enterprises to safely distribute internal apps to external users.

5. Directory Synchronization

  • Azure AD Connect: Azure AD Connect can be used to synchronize on-premises identities with Azure AD for companies that have an on-premises Active Directory (AD). With just one set of credentials, users can access both on-premises and cloud services in a hybrid identity environment made possible by this.
  • Federation: Azure AD facilitates federation with other third-party identity providers or on-premises Active Directory Federation Services (AD FS). This enables central management of authorization and authentication for businesses.

6. Security and Monitoring

  • Identity Protection: Azure AD Identity Protection detects and reacts to suspicious activity, like hacked accounts or unexpected sign-ins, using machine learning and risk-based policies.
  • Azure AD Audit Logs: These logs include comprehensive details regarding modifications and actions made to Azure AD, including directory changes, application access, and user sign-ins. You can utilize these logs for compliance and monitoring.
  • Privileged Identity Management (PIM): PIM in Azure AD enforces the least privilege, generates audit logs for monitoring, and offers just-in-time privileged access to assist manage and regulate access to critical resources.

7. Collaboration

  • Azure AD B2B (Business to Business): By granting restricted access to internal resources, Azure AD enables enterprises to work with outside users (vendors, partners, etc.). External users can access shared resources by using their current login credentials.
  • Azure AD B2C (Business to Consumer): With Azure AD B2C, businesses may offer identity management for applications that interact with consumers. Customers can use their social media or local accounts to log in.

8. Integration with Other Microsoft Services

  • Microsoft 365 Integration: Exchange Online, SharePoint Online, Teams, and other Microsoft 365 services rely on Azure AD for identity management. It facilitates cooperation between users of Microsoft's suite of products and controls user access.
  • Azure Integration: Identity and access management throughout the Azure ecosystem is made possible by Azure AD's close integration with other Azure services.

The Difference between Windows AD and Azure AD

Azure AD's earlier version was Windows Active Directory (AD). An OS directory service called Active Directory (AD) makes it easier to work unified with a variety of interrelated, complicated, and diverse network resources. The fact that Windows AD consisted of multiple layers, each handling a different task.

The following is an explanation of these layers:

1. Windows Active Directory Domain Services( ADDS)

  • The administrator can handle user login information and other details with ADDS.

2. Azure Data Lake Storage Services (ADLS)

  • This layer lets you store any kind and volume of data.

3. Active Directory Federation Services (ADFS)

  • With the help of this layer, you can sign up for access to all systems and applications with only one choice.

4. Active Directory Certification Services (ADCS)

  • Administrators can modify services to handle and distribute public certificates using this layer.

5. Active Directory Rights Management Services (ADRMS)

  • ADRMS is a data protection security technology. When it comes to Windows AD, administrators have a lot of layers to maintain.
  • This is where Azure AD completely modified the rules.

All five of these levels are combined into two, and they are as follows:

1. Windows Azure Active Directory (WAAD)

  • The identity management issues are all combined into one layer.

2. Windows Azure Access Control Service (WAACS)

  • All of these services within an organization can be divided or federated thanks to this layer.

In this context, division refers to allocating each of these services to a user. As a result, Azure AD uses only two levels to simplify many issues. For instance, Azure AD is used by Office 365 to maintain user identities. The administrator would only need to supply a single username and password in order to access any of the Office 365 services, including Microsoft Word, Excel, and PowerPoint.

What is a Service Audience?

The Azure Active Directory contains three different kinds of audiences:

  1. IT administrators
  2. Application developers
  3. Online customers 

1. IT Administrators 

IT administrators handle every step of the sign-in process. They also resolve authentication-related problems.

2. Application developers

These services are used by application developers to create applications. With so many resources at hand, development happens quickly.

3. Online customers 

They utilize services like CRM and Office 365, and all of their needs are met right away.

Azure Active Directory key features

1. Single Sign-On (SSO)

Users can access many applications with Azure AD without having to log in again for each one by just logging in once. Lowering the frequency of credential entry enhances user experience and productivity.

2. Multi-Factor Authentication (MFA)

Through the use of two or more kinds of verification, Azure AD offers MFA, which adds an additional layer of security to resource access. This can comprise the user's knowledge (password), possessions (phone, security token), or identity (facial recognition or fingerprint).

3. Access with Conditions

Administrators can restrict user access to programs depending on risk assessment, device condition, or user location with the help of Conditional Access policies. This guarantees that sensitive data can only be accessed by authorized individuals and devices.

4. Identity Protection

Machine learning and behavioral analytics are used by Azure AD Identity Protection to identify and address any identity issues. Responses to hacked user accounts and high-risk sign-ins can be automated.

5. B2C and B2B Partnership

Azure AD allows consumer identity and access management (B2C) and enables secure cooperation between businesses (B2B). This enables companies to securely invite clients, vendors, and partners to access apps.

6. Self-Service Password Reset (SSPR)

SSPR ensures users to reset their passwords without contacting IT support, reducing the burden on helpdesk staff and minimizing downtime for users.

15 Possible Attacks on Azure Active Directory

Possible Attacks on Azure Active Directory

1. Password Spray Attacks

  • Using similar passwords on several accounts, attackers try to enter accounts without authorization.
  • Often, accounts with weak or frequently used passwords are the focus of this technique.
  • Mitigation strategies include enforcing strict password regulations, turning on multi-factor authentication (MFA), and keeping an eye out for odd sign-in behavior.

2. Brute Force Attacks

  • To decode a user's password, attackers methodically try every combination until they find the right one.
  • Mitigation strategies include using MFA, locking down accounts, and keeping an eye out for strange login habits.

3. Phishing Attacks

  • Description: Phishing emails or convincingly phony login pages are used by attackers to deceive users into divulging their passwords.
  • Mitigation: Mitigation strategies include employing anti-phishing technologies, teaching users how to spot phishing efforts, and enforcing MFA.

4. Credential Stuffing

  • Based on the fact that users frequently reuse passwords across numerous websites, attackers attempt to access Azure AD accounts using credentials gleaned from attacks of other providers.
  • Mitigation strategies include using MFA, advising users to create distinct passwords, and keeping an eye out for shady login attempts.

5. Consent Grant Attacks

  • These attacks consist of deceiving users into allowing malicious programs access to their Azure AD resources and data.
  • Mitigation strategies include setting up conditional access controls, reviewing and managing consented applications, and educating users to be wary of consent prompts.

6. Man-in-the-Middle (MitM) Attacks

  • In order to get session tokens or passwords, attackers eavesdrop on user conversations with Azure AD.
  • Mitigation strategies include employing MFA, secure connections (HTTPS/TLS), and cutting-edge authentication methods that are impervious to MitM assaults.

7. Token Theft

  • In order to impersonate a user without requiring their password, attackers take the tokens that authenticate users to Azure AD.
  • Reduce the lifetime of tokens, provide conditional access controls, and keep an eye out for odd token usage as mitigation measures.

8. Privilege Escalation

  • By taking advantage of weaknesses or incorrect setups, attackers are able to escalate their privileges within Azure AD and maybe take over confidential resources.
  • Mitigation: Use least privilege access, audit, and review permissions on a regular basis, and keep an eye out for attempts at privilege escalation.

9. Pass-the-Hash Attacks

  • Description: Without requiring the actual plaintext password, attackers can authenticate by capturing and reusing hashed password data.
  • Use MFA, put advanced threat prevention into place, and make sure you get security patches and upgrades on a regular basis as mitigation measures.

10. Replay Attacks

  • In order to carry out a transaction or obtain access again, attackers seize and reuse legitimate authentication tokens or credentials.
  • Mitigation: Employ MFA, use tokens with brief lifespans, and keep an eye out for unusual or duplicate access patterns.

11. Directory Synchronization (DirSync) Attacks

  • In order to introduce malicious modifications or steal data, attackers hack on-premises setups that are synced with Azure AD.
  • Mitigation strategies include using conditional access to limit sync access, monitoring synchronization operations, and securing on-premises settings.

12. Denial of Service (DoS) Attacks

  • The goal of these attacks is to overload Azure AD services so that unauthorized users are unable to access resources.
  • Mitigation: Apply rate limitation, keep an eye on service performance, and make use of Azure's integrated DDoS defense.

13. Attacks based on applications

  •  Unauthorized access to resources or user data is obtained by attackers who hack an application that is registered with Azure AD.
  • Mitigation strategies include using best practices for application security, monitoring application activity, and reviewing and managing application permissions.

14. Backdoor Accounts

  • An attacker can use or create a hidden account with higher privileges to get around standard security measures.
  • Mitigation: Implement stringent account creation procedures, keep an eye out for odd account activity, and audit account lists and privileges on a regular basis.

15. Shadow IT

  • Applications or unapproved cloud services that are linked to Azure AD without the organization's knowledge and may put it at risk for security breaches.
  • Mitigation strategies include using cloud discovery tools, enforcing use policies, and keeping an eye out for unwanted applications.

Advantages of Azure Active Directory

1. Increased Safety

Strong security features like MFA, conditional access, and identity protection are provided by Azure AD, guaranteeing that only authorized users may access resources. By doing this, the possibility of illegal access and data breaches is greatly decreased.

2. Enhanced User Experience

Users may access numerous apps with a single set of login credentials thanks to SSO, which expedites the login process and boosts productivity. Self-service features let customers take control of their passwords on their own, which improves the user experience even more.

3. Seamless Integration

Numerous Microsoft and third-party apps, including as Office 365, Dynamics 365, Salesforce, and others, easily interact with Azure AD. Organizations may now more easily control access to several applications from a single platform.

4. Flexibility and Scalability

Azure AD is a cloud-based service that grows automatically to meet the demands of expanding businesses. It may be tailored to meet unique organizational needs and supports a wide range of use cases, from startups to major corporations.

5. Savings on Costs

Azure AD can help businesses save money on IT by eliminating the requirement for on-premises equipment and simplifying identity management procedures. Additional cost savings are achieved by lightening the workload of IT support personnel with the help of features like SSPR.

Using Azure Active Directory

1. Establish an Azure AD Tenant

Start by utilizing the Azure portal to create an Azure AD tenant. This tenant acts as a special user, group, and application management directory.

2. Include Groups and Users

Add users and groups to your Azure AD directory to make it full. Using Azure AD Connect, you can create users directly from the Azure interface or sync users from an on-premises Active Directory.

3. Set up MFA and SSO.

Turn on SSO and set up MFA to improve security and expedite user access. You may set up these functionalities with the assistance of step-by-step instructions and documentation from Azure AD.

4. Set Conditional Access Policies into Practice

  • To regulate when and how users can access programs, define and execute conditional access policies.
  • This guarantees that the security standards of your company are fulfilled.

5. Monitoring  and Managing

  • To control access, create reports, and keep an eye on user activities, use the Azure AD admin center.
  • Azure AD offers a wide range of auditing and monitoring capabilities to support you in keeping security and compliance.

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Conclusion

Azure Active Directory is a robust identity and access management system that offers a better user experience, increased security, and smooth application interaction. Azure AD can assist you in managing user identities, securing resource access, and streamlining IT processes regardless of the size of your company. Also if you want to become an Azure developer just go with our Azure Roadmap.

FAQs

Q1. What is the difference between Active Directory and Azure AD?

Active Directory supports traditional authentication protocols like Kerberos and LDAP, while Azure AD uses modern protocols like SAML, OAuth 2.0, and OpenID Connect

Q2. Why use Azure AD?

Azure AD allows for centralised management of user identities, enabling you to create, modify, and delete users and groups across all connected applications and services.

Q3. Is Azure Active Directory SaaS or PaAS?

Azure Active Directory (Azure AD) is a Microsoft cloud-based service that falls under the Software-as-a-Service (SaaS) category.

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About Author
Shailendra Chauhan (Microsoft MVP, Founder & CEO at Scholarhat by DotNetTricks)

Shailendra Chauhan is the Founder and CEO at ScholarHat by DotNetTricks which is a brand when it comes to e-Learning. He provides training and consultation over an array of technologies like Cloud, .NET, Angular, React, Node, Microservices, Containers and Mobile Apps development. He has been awarded Microsoft MVP 8th time in a row (2016-2023). He has changed many lives with his writings and unique training programs. He has a number of most sought-after books to his name which has helped job aspirants in cracking tough interviews with ease.
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