Difference Between Active Directory vs Azure AD and Features

23 March 2023

When it comes to managing and authenticating users and resources in a network, there are two popular directory services offered by Microsoft: Active Directory and Azure AD. However, these directory services serve different purposes. AD is an on-premises directory service that manages and authenticates users, computers, and other resources in a Windows-based network, while Azure Active Directory is a cloud-based directory service that manages and authenticates users, applications, and other resources in a cloud-based environment. In this blog post, we’ll explore the difference between Active Directory and Azure AD and help you determine which directory service is right for your business.

Active Directory

AD is a popular on-premises directory service that has been around since the days of Windows 2000. It is designed to provide authentication and authorization services for users, computers, and other resources in a Windows-based network. Active Directory is a centralized database that contains information about users, groups, computers, and other objects in the network. It provides a single point of management for network administrators, who can use it to control access to network resources, enforce security policies, and manage user accounts.

Active Directory is a robust directory service that has many features, including:

User and group management: Administrators can use AD to create and manage user accounts and groups. Group policies can be used to enforce security settings and other policies by assigning users to groups based on their roles, departments, or other criteria.

Authentication and authorization: Active Directory provides authentication and authorization services for users and computers in the network. Users can log in to the network using their user accounts, which can be used to control access to network resources based on a user’s permissions.

Single sign-on: It supports single sign-on (SSO), which allows users to log in to multiple applications and services using a single set of credentials.

Group policies: Active Directory allows administrators to create and manage group policies, which can be used to enforce security settings and other policies across the network.

Replication: It supports replication, which allows multiple domain controllers to share information about users, groups, and other objects in the network.

Azure AD

Azure Active Directory is a cloud-based directory service that is designed to manage and authenticate users, applications, and other resources in a cloud-based environment. It is a modern identity management platform that provides identity and access management services for cloud-based applications and services. It is a part of Microsoft’s Azure cloud platform and is used by many organizations to manage access to cloud-based resources.

Azure AD is a powerful directory service that has many features, including:

Cloud-based identity management: It provides cloud-based identity management services for users, applications, and other resources in a cloud-based environment. It can be used to manage access to cloud-based applications and services, as well as on-premises applications and services.

Single sign-on: Azure AD supports single sign-on (SSO), which allows users to log in to multiple applications and services using a single set of credentials.

Multi-factor authentication: It supports multi-factor authentication, which provides an additional layer of security for users when they log in to applications and services.

Application management: Provides application management services, which allow administrators to manage access to cloud-based applications and services.

Integration with other Microsoft services: Azure AD integrates with other Microsoft services, such as Microsoft 365 and Dynamics 365, which makes it easy to manage access to these services.

Difference Between Active Directory and Azure AD

Choosing between Active Directory and Azure Active Directory depends on your business needs and the resources you have available. Here are some factors to consider when deciding which directory service is right for your business:

On-premises vs. cloud-based: If your business is primarily on-premises and you have a traditional Windows-based network, Active Directory may be the best choice for you. However, if your business is cloud-based or if you are considering moving to the cloud, Azure AD may be the better choice.

Size of your organization: Active Directory is a robust directory service that is designed for large organizations with complex network infrastructures. If your organization is small or midsized, Azure AD may be a more cost-effective solution.

Type of resources you need to manage: If you primarily need to manage users, computers, and other resources in a Windows-based network, Active Directory may be the better choice. However, if you need to manage cloud-based applications and services, Azure AD may be the better choice.

Security needs: Both Active Directory and Azure AD provide robust security features, but Azure AD offers additional security features such as multi-factor authentication and conditional access. If security is a top priority for your business, Azure AD may be the better choice.

Budget: The cost of implementing and maintaining Active Directory can be significant, especially for large organizations with complex network infrastructures. Azure AD is a more cost-effective solution, especially for smaller organizations or organizations that are just starting to move to the cloud.

In Summary, 

After known key features and difference between Active Directory and Azure AD, both are powerful directory services that offer robust identity and access management services. Choosing between the two depends on your business needs, the resources you have available, and your budget. If you need to manage users, computers, and other resources in a traditional Windows-based network, Active Directory may be the best choice. However, if you need to manage cloud-based applications and services, Azure AD may be the better choice. Regardless of which directory service you choose, both offer powerful security features and can help your organization manage access to critical resources.

At Star Knowledge, we have a team of experienced IT professionals who can help you determine which directory service is right for your business based on your unique needs and goals. We can assist you in implementing and maintaining Azure AD, depending on your chosen solution. Our team is well-versed in both on-premises and cloud-based technologies, and we can help you seamlessly integrate these services with your existing infrastructure. We can also provide ongoing support and maintenance to ensure that your directory service is operating efficiently and securely. Contact us today to learn more about how we can help you with your directory service needs!