# Microsoft Entra ID (Azure AD) Basics for Business Owners

- Link: https://dbr-soft.com/microsoft-entra-id-azure-ad-basics-for-business-owners/
- Published: 2026-10-16T17:24:02+00:00
- Author: David Botero

Whenever someone signs in to Microsoft 365, they’re using Microsoft Entra ID, formerly
called Azure Active Directory (Azure AD). It’s the identity foundation of your cloud
environment.

**What it does**

– Stores user accounts and groups

– Authenticates users when they sign in

– Controls access to applications (Microsoft and thousands of third-party apps)

– Enforces security rules such as MFA

– Manages device identities

**Why it matters**

Identity is the new security perimeter. Most attacks target stolen credentials. 
Protecting identity protects everything connected to it.

**Key features**

– **Single sign-on (SSO)** to apps with one set of credentials

– **Multi-factor authentication (MFA)**

– **Conditional Access** policies (in paid tiers)

– **Self-service password reset**

– **Role-based administration**

– **Sign-in logs and risk detection**

**Entra ID vs. on-premises Active Directory**

Traditional Active Directory runs on local servers. Entra ID is cloud-based. Many
companies use both, synchronized through Entra Connect, while moving toward cloud-
only.

**Good practices**

– Enforce MFA for everyone, especially administrators

– Use separate admin accounts for administrative tasks

– Limit the number of global administrators

– Review sign-in logs and alerts

– Remove accounts promptly when staff leave

– Block legacy authentication

**Licensing tiers**

Free, P1, and P2 offer progressively more security features. P1 is included in Microsoft
365 Business Premium.

**DBR Soft can review and harden your Entra ID configuration.** **[Contact us for more information.](https://dbr-soft.com/contact/)**

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