Every Perth business running Microsoft 365 already has Entra ID, whether or not anyone's heard of it by name. It's the identity service behind every sign-in to Outlook, Teams, and SharePoint, renamed from Azure Active Directory in 2023, and it's worth understanding what it actually does beyond "the thing that asks for your password."
What Entra ID Actually Does
At its core, Entra ID is a directory, a record of every user, device, and application in your business, plus the rules controlling what each is allowed to access. When a staff member signs in to Outlook on their laptop, Entra ID is what checks the password, prompts for MFA, and decides whether that sign-in should be allowed based on where it's coming from and what device it's on.
The Free Tier vs Paid Tiers
Every Microsoft 365 subscription includes a free tier of Entra ID automatically, covering basic sign-in and directory functions. The paid tiers (bundled into Business Premium and above) unlock Conditional Access policies, identity protection that flags risky sign-ins automatically, and more detailed reporting. Most Perth SMBs on Business Premium already have access to these, the gap is usually that they were never configured.
Groups and Access, Not Just Passwords
Beyond sign-in, Entra ID is where group membership lives, which drives access to SharePoint sites, distribution lists, and licensed apps. Clean group structures make onboarding and offboarding faster and far less error-prone than manually assigning access to each system individually, which is where a lot of stale, unreviewed permissions come from over time.
How It Fits With Azure and Intune
Entra ID is part of the broader Azure platform, and works alongside Intune for device management, together they form the identity and device layer that Conditional Access policies reference to decide who gets in and from where. Getting this foundation right makes every other Microsoft 365 security control more effective, not less.
Frequently Asked Questions
Is Entra ID the same thing as Azure Active Directory?
Yes, Microsoft renamed Azure Active Directory to Microsoft Entra ID in 2023. It's the same underlying identity service, just under a new name as part of a broader Entra product family.
Do we already have Entra ID if we use Microsoft 365?
Yes, every Microsoft 365 subscription includes a free tier of Entra ID by default, it's what handles sign-in for Outlook, Teams, and SharePoint already. The question is usually whether you're using the paid tiers that unlock Conditional Access and more advanced controls.
Is Entra ID only relevant to larger businesses?
No, even a business with ten staff benefits from getting the basics right, MFA enforcement, clean group structures, and removing access promptly when someone leaves. The advanced features scale with size, but the fundamentals matter at any size.
How does this relate to Intune and device management?
Entra ID handles who can sign in, Intune handles what state their device needs to be in to do so. The two work together, Conditional Access policies commonly reference device compliance status from Intune as one of their conditions.
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Book a Free IT Health CheckFor related reading, see Conditional Access Policy Explained, MFA Setup for Perth Businesses, and Microsoft Intune for Perth Businesses.