Microsoft Entra ID is the cloud-based identity and access management (IAM) system that controls who can log into your business’s apps, devices, and data. If your team uses Microsoft 365, they’re already using it.
This guide walks through what Microsoft Entra ID does, why it matters for UK businesses, and how a managed IT provider can help you get the most from it.
What Is Microsoft Entra ID?
Microsoft Entra ID is Microsoft’s cloud-based identity platform. It authenticates users, manages access to applications and devices, and enforces security policies across your organisation.
It was previously called Azure Active Directory (Azure AD) before Microsoft rebranded it in July 2023 as part of the wider Microsoft Entra product family. The functionality is the same. The name change reflects Microsoft’s broader identity strategy, which now spans cloud, hybrid, and on-premises environments.
Think of Microsoft Entra ID as your organisation’s digital gatekeeping system. Every time someone on your team logs in to Teams, SharePoint, or Outlook, Entra ID checks whether they are who they say they are and whether they should have access to what they’re requesting.
How Entra ID Differs from On-Premises Active Directory
Active Directory (AD) is the traditional, on-premises identity management system. Microsoft Entra ID is its cloud-native successor, built for modern work environments where staff log in from multiple devices and locations.
The key differences are:
- Active Directory runs on physical domain controllers in your office. Entra ID runs entirely in Microsoft’s cloud.
- Active Directory authenticates users against office-network-based devices. Entra ID authenticates users from any device, anywhere.
- Active Directory uses Kerberos and NTLM protocols. Entra ID uses modern standards like OAuth 2.0, SAML, and OpenID Connect.
Many UK businesses run both in parallel, which is called a hybrid identity environment. Your staff might have an Active Directory account on-premises and an Entra ID account in the cloud, synced together using Microsoft Entra Connect.
What Does Microsoft Entra ID Actually Do?
Microsoft Entra ID handles four core functions: authentication (proving who you are), authorisation (deciding what you can access), device management integration, and application provisioning.
Most business owners encounter it through the login screen. But the work Entra ID does behind that screen is substantial.
Authentication and Single Sign-On
Entra ID supports Single Sign-On (SSO), which means your staff sign in once and gain access to all connected applications without re-entering credentials. Log into Microsoft 365 in the morning, and you’re automatically signed into SharePoint, Teams, Power BI, and any third-party SaaS (Software as a Service) apps your business uses, like Salesforce or Dropbox.
This is not just a convenience feature. Password reuse is one of the leading causes of credential-based breaches. SSO reduces the number of passwords your staff need to remember, which means fewer weak passwords, fewer reused passwords, and fewer phishing opportunities.
Multi-Factor Authentication
Multi-Factor Authentication (MFA) is an Entra ID security feature that requires users to verify their identity through a second method, such as the Microsoft Authenticator app, before gaining access.
The stats here are striking: Microsoft’s own data shows MFA reduces the risk of account compromise by 99.22%. At Microbyte, we’ve been deploying MFA across client environments for years, and the pattern is consistent. Businesses that enable MFA stop credential-based attacks at the login screen rather than discovering them weeks later in a breach report.
Conditional Access Policies
Conditional Access is where Entra ID becomes powerful for businesses in a practical way. Rather than a simple “right password = access” model, Conditional Access lets you set rules about when and how access is granted.
Examples:
- Block logins from outside the UK unless MFA is completed
- Require compliant devices (managed via Microsoft Intune) to access sensitive data
- Force MFA for any login from an unrecognised device or new location
A financial services firm in the City of London might configure Conditional Access to ensure staff can only access client data from company-issued laptops. A manufacturing business in Peterborough might block access from certain countries entirely, since most credential-based attacks originate abroad.
Application Management and Provisioning
Entra ID acts as the central directory for every application your business uses. When a new member of staff joins, IT can provision their accounts across all connected applications from a single admin panel. When someone leaves, one action in Entra ID revokes access to everything.
This matters operationally. Businesses without central identity management often discover ex-employees still have access to cloud applications weeks after leaving, because IT had to manually remove access from each one.
Why Do I Have Microsoft Entra ID?
Your organisation has Microsoft Entra ID because it comes included with every Microsoft 365 subscription. You cannot use Microsoft 365, Azure, or Microsoft Teams without an Entra ID tenant.
A tenant is your organisation’s dedicated instance of Entra ID. It’s isolated from all other organisations and contains your user accounts, groups, applications, and security policies. Every business that buys Microsoft 365 automatically gets an Entra ID tenant created for them.
If you’ve ever seen the message “Your account is not from this organisation” or been asked to sign in with a work or school account, you’ve been interacting with Entra ID.
Free vs Paid Tiers
Entra ID comes in three tiers. The features available to your organisation depend on which Microsoft licences you hold.
Entra ID Free is included with any Microsoft subscription, including Microsoft 365 Business Basic. It covers basic user management, SSO for up to 10 applications per user, and MFA via the Microsoft Authenticator app.
Entra ID P1 (included in Microsoft 365 Business Premium and E3) adds Conditional Access, self-service password reset for hybrid environments, and the ability to enforce MFA for all cloud applications without limit.
Entra ID P2 (included in E5) adds Identity Protection, which uses machine learning to detect risky sign-ins and automatically block suspicious logins. It also adds Privileged Identity Management (PIM), which lets you grant admin access on a time-limited, just-in-time basis rather than permanently.
Most SMEs in the UK operate on Microsoft 365 Business Premium, which means they have Entra ID P1 available. Many do not know this, and many are missing the Conditional Access features their licence already includes.
Where Can I Find My Microsoft Entra ID?
You access Microsoft Entra ID through the Microsoft Entra admin centre at entra.microsoft.com. If you have a Microsoft 365 admin account, you can log in and see your tenant’s identity configuration, users, groups, and applications.
As an end user, you’ll interact with Entra ID through the My Account portal at myaccount.microsoft.com. Here you can see which devices are registered to your account, which applications have access to your data, and whether MFA is configured.
Your IT administrator manages the full Entra ID environment, including Conditional Access policies, user provisioning, and application integrations. If you’re a Microbyte client, our team manages this on your behalf.
What Is Microsoft Entra ID in the Authenticator App?
The Microsoft Authenticator app connects to Entra ID to verify your identity during the MFA process. When you log in, Entra ID sends a push notification to the app on your phone, and you approve it to confirm you’re the legitimate user.
The Authenticator app supports three verification methods:
- Push notifications: Approve or deny a login prompt on your phone
- One-time passcodes (OTP): A six-digit code that refreshes every 30 seconds
- Passwordless sign-in: Log in using only your fingerprint or face ID, with no password required at all
Passwordless authentication became available for Microsoft accounts in January 2024. For businesses, this is worth paying attention to. Passwords are the weakest point in most organisations’ security posture. Removing the password entirely and replacing it with biometric authentication means a stolen credential is useless.
We increasingly recommend clients move toward passwordless sign-in for their highest-risk accounts, specifically IT administrators and anyone with access to financial or customer data.
How Does Microsoft Entra ID Support a Zero Trust Security Model?
Zero Trust is a security model based on the principle that no user or device should be trusted by default, even if they’re inside the corporate network. Microsoft Entra ID is the primary tool for implementing Zero Trust in a Microsoft environment.
Traditional network security assumed that anyone inside the network perimeter could be trusted. Hybrid and remote working broke that model. Staff now log in from home broadband, coffee shops, and mobile devices. There is no clear perimeter to defend.
Entra ID enforces Zero Trust through continuous verification:
- Every login is evaluated against Conditional Access policies
- Device compliance is checked before access is granted
- Risky sign-ins trigger additional verification or are blocked entirely
- Privileged access is granted on a just-in-time basis via PIM
The National Cyber Security Centre (NCSC) recommends Zero Trust principles for organisations moving to cloud-first or hybrid working. Entra ID is the practical implementation of those principles for Microsoft 365 environments.
Identity Protection and Risk-Based Authentication
Entra ID P2 includes Identity Protection, which evaluates the risk level of every sign-in based on signals like the user’s location, device, IP address, and behavioural patterns. If a login looks suspicious, such as a simultaneous login attempt from London and Lagos, Identity Protection can automatically require additional verification or block the attempt entirely.
This is particularly relevant for businesses that handle regulated data, including firms in financial services, healthcare, and legal sectors. Our IT consultancy services team works with clients in these industries to configure Identity Protection policies that meet regulatory requirements while keeping day-to-day access friction as low as possible for staff.
Microsoft Entra ID and Microsoft 365: How They Work Together
Every Microsoft 365 application relies on Microsoft Entra ID for identity and access. When a user signs in to Teams, Outlook, SharePoint, or OneDrive, Entra ID verifies their identity and determines what they can access.
The integration runs deeper than just login. Entra ID manages:
- Which users have licences for which Microsoft 365 applications
- Group memberships that determine SharePoint site and Teams channel access
- External guest access for partner organisations and contractors
- Conditional Access policies that apply to all Microsoft 365 traffic
A well-configured Entra ID environment makes Microsoft 365 administration significantly more manageable. IT teams can manage hundreds of users through group policies rather than individual account settings, which reduces both administrative overhead and the risk of misconfiguration.
Integrating Third-Party Applications
Entra ID’s application gallery includes over 3,000 pre-integrated SaaS applications. This means SSO and automated provisioning are not limited to Microsoft products. Whether your business uses Salesforce, Zoom, Dropbox, DocuSign, or any number of other cloud tools, Entra ID can act as the central identity provider.
For businesses managing more than a handful of cloud applications, this matters. Staff get a consistent login experience across every tool. IT gets a single location to manage access and review who has permissions to what. Leaving employees are deprovisioned from every application at once.
How Microbyte Manages Microsoft Entra ID for UK Businesses
We’ve been working with Microsoft’s identity management tools since before the Entra rebrand, managing Azure AD environments for clients across London, Peterborough, Lincoln, and internationally.
As a Microsoft Gold Partner and Direct Cloud Solutions Provider (CSP), we have deep technical access to the Microsoft stack, including priority support and early access to new Entra features.
Our approach to Entra ID management includes:
- Initial configuration audit: We review your existing Entra ID setup, checking user accounts, group structures, Conditional Access policies, and MFA adoption rates.
- Policy implementation: We build Conditional Access policies tailored to your business’s risk profile and working patterns.
- Ongoing monitoring: Our 24/7 Security Operations Centre (SOC) monitors identity-related alerts and investigates suspicious sign-in activity.
- Helpdesk support: Users who get locked out or have MFA issues can reach our team any time, day or night.
If your business is on Microsoft 365 and you’re not sure whether your Entra ID environment is configured correctly, or whether you’re making use of the features your licence already includes, that’s a conversation worth having. Learn more about our Microsoft Defender security management and Microsoft Azure services.
Frequently Asked Questions
Why do I have a Microsoft Entra ID?
Microsoft Entra ID is included with every Microsoft 365 subscription. Your organisation received an Entra ID tenant automatically when your Microsoft 365 account was created. It manages user identities and controls access to Microsoft 365 applications, Azure resources, and any connected third-party cloud tools your business uses.
Where can I find my Microsoft Entra ID?
Administrators can access the Entra admin centre at entra.microsoft.com using their Microsoft 365 admin credentials. End users can view their own account details, registered devices, and MFA settings at myaccount.microsoft.com. Your IT team or managed service provider can also access your Entra ID tenant on your behalf.
What is Microsoft Entra ID in the Authenticator app?
In the Microsoft Authenticator app, Entra ID appears as your work or school account. The app connects to your organisation’s Entra ID tenant to handle Multi-Factor Authentication (MFA). When you log in, Entra ID sends a verification request to the Authenticator app on your phone. You approve it to confirm your identity and complete the login.
Is Microsoft Entra ID free?
A basic version of Microsoft Entra ID is included at no extra cost with any Microsoft 365 subscription. This covers standard user management and MFA. Advanced features like Conditional Access require Entra ID P1, which is included in Microsoft 365 Business Premium and E3. Identity Protection and Privileged Identity Management require Entra ID P2, included in Microsoft 365 E5.
If you’d like to know whether your current Entra ID configuration is working as hard as it should, our team can run a review for you.
Speak to IT consultancy services from Microbyte to get started.
