Which one fits your enterprise best in 2025?
In today’s hybrid IT environments, managing identities effectively is more important than ever. Two prominent Microsoft solutions—Active Directory Domain Services (AD DS) and Microsoft Entra ID (formerly Azure Active Directory)—offer very different approaches to identity and access management.
This post dives into how these two systems compare across critical areas like provisioning, authentication, security, and infrastructure. Whether you’re migrating to the cloud or maintaining an on-prem ecosystem, understanding the differences is key to architecting a secure and scalable identity strategy.
📜 1. The Foundation of Identity
🔹 Active Directory DS (AD DS)
Originally released with Windows 2000, AD DS is a hierarchical, on-premises directory used primarily for Windows-based environments. It supports legacy protocols like LDAP and Kerberos and powers a wide range of services such as DNS, DHCP, and Group Policy.
🔹 Microsoft Entra ID
Microsoft Entra ID is a cloud-native, modern identity platform designed to manage users and access across cloud apps, SaaS services, and hybrid infrastructure. It supports modern authentication protocols like OAuth2, SAML, and OpenID Connect and delivers robust governance tools out-of-the-box.
👥 2. User Provisioning & Lifecycle Management
| Feature | AD DS | Entra ID |
|---|---|---|
| User Provisioning | Manual or Microsoft Identity Manager | Sync from AD, HR feeds, or SCIM |
| Group Membership | Static, OU-based | Dynamic rules, self-service |
| Guest Access | Not native; separate forests required | Built-in B2B guest capabilities |
Takeaway: Entra ID simplifies provisioning and lifecycle automation, especially for SaaS and hybrid cloud environments.
🔐 3. Credential Management & Security
| Feature | AD DS | Entra ID |
|---|---|---|
| Authentication | Passwords, smartcards, certs | MFA, passwordless (FIDO2), smart lockout |
| Self-Service Reset | Requires configuration | Built-in support |
| Protection Against Attacks | Account lockout policies | Risk-based Conditional Access, Identity Protection |
Takeaway: Entra ID leads with adaptive, intelligent security suited for modern threat landscapes.
🧰 4. Administrative Control & Governance
| Feature | AD DS | Entra ID |
|---|---|---|
| Role Management | Group-based delegation | RBAC with Just-in-Time access (PIM) |
| Group Management | Manual | Self-service + access packages |
| Conditional Access | Not supported | Fully integrated with real-time risk signals |
Takeaway: Entra ID offers granular, real-time access governance for hybrid and SaaS-native organizations.
🧱 5. Infrastructure Integration
| Feature | AD DS | Entra ID |
|---|---|---|
| Protocol Support | Kerberos, NTLM, LDAP | OAuth2, SAML, OpenID |
| Application Integration | On-prem apps | SaaS, PaaS, on-prem via proxy |
| Device Management | Windows domain join | Azure AD Join, Intune, Conditional Access |
| Server/Cloud Workloads | Group Managed Service Accounts | Managed identities for Azure, containers, Linux |
Takeaway: While AD DS supports legacy infrastructure, Entra ID is optimized for cloud-native operations and container-based workloads.
📊 Summary
🧭 Final Thoughts: Which Should You Use?
-
Choose Active Directory DS if:
You have a heavily Windows-based, on-premises infrastructure and rely on traditional protocols and systems like GPO, Kerberos, or NTLM. -
Choose Microsoft Entra ID if:
You need a scalable, cloud-first identity platform to secure access across SaaS apps, hybrid workloads, mobile devices, and multiple tenants—with rich governance and security built in.
✅ Hybrid is Possible
You don’t have to choose one or the other. Many enterprises use a hybrid model, with Entra ID managing cloud identities and AD DS still providing local authentication and policy enforcement. Microsoft Entra Connect bridges the gap, syncing identities and enabling secure Single Sign-On (SSO) across both worlds.
📣 Ready to Modernize Identity?
Whether you’re planning a cloud migration, need to streamline user provisioning, or simply want to enhance identity security, Microsoft Entra ID offers the tools to future-proof your strategy. But understanding where AD DS still adds value ensures your hybrid environment runs smoothly and securely.