In the context of Azure Administrator (AZ-104) and Microsoft Entra ID (formerly Azure AD), managing external users via B2B (Business-to-Business) collaboration allows organizations to securely share applications and services with guest users from other organizations. This feature enables external p…In the context of Azure Administrator (AZ-104) and Microsoft Entra ID (formerly Azure AD), managing external users via B2B (Business-to-Business) collaboration allows organizations to securely share applications and services with guest users from other organizations. This feature enables external partners to use their own credentials to access your resources, eliminating the need for you to manage their passwords or identity lifecycles.
Effective management of B2B users involves several key components:
**1. Guest User Invitations:** Administrators invite users by email. The user redeems the invitation to establish a trust relationship. These users are added to the directory with a User Type of "Guest" rather than "Member," which applies default restrictions to their directory visibility.
**2. External Collaboration Settings:** Administrators configure these settings to control who can invite guests (admins only or specific members) and restrict what information guests can see within the directory (e.g., preventing them from browsing the user list).
**3. Cross-Tenant Access Settings:** This allows for granular control over collaboration with specific external organizations. Administrators can configure inbound and outbound trust settings, such as trusting Multi-Factor Authentication (MFA) claims from the external user's home tenant. This improves the user experience by preventing double-prompting for MFA.
**4. Security and Governance:** Once a guest is onboarded, they function similarly to internal users regarding resource access. You can assign them to Security Groups and apply Role-Based Access Control (RBAC). Crucially, you should apply Conditional Access policies to enforce security requirements (like MFA) and utilize Identity Governance features like Access Reviews to periodically recertify guest access, ensuring that permissions are revoked when the business partnership ends.
Manage External Users (B2B) in Azure Active Directory
What is Manage External Users (B2B)? Azure Active Directory (now Microsoft Entra ID) Business-to-Business (B2B) collaboration is a feature that allows you to invite guest users from other organizations to share your company's applications and services. These external users sign in with their own identities—whether they are from another Azure AD tenant, a Microsoft account, or a Google ID—allowing you to grant access without having to manage their passwords or lifecycle.
Why is it Important? Security and Governance: You can apply policies like Conditional Access and Multi-Factor Authentication (MFA) to guest users just as you would for internal employees. Reduced Administrative Overhead: IT does not need to reset passwords for external partners because authentication is handled by the partner's home identity provider. Collaboration: It facilitates seamless sharing of resources (like SharePoint sites, Teams, or custom apps) across organizational boundaries.
How it Works 1. Invitation: An administrator or an authorized user sends an invite to the external user's email address. This can be done via the Azure Portal, PowerShell, or bulk upload. 2. Guest User Object: A user object is created in your directory with the UserType set to Guest. This is distinct from a standard Member account. 3. Redemption: The external user clicks the link in the email to redeem the invitation. During this process, they consent to the organization's privacy terms. 4. Authentication: When the guest accesses a resource, Azure AD redirects them to their home identity provider (their own company, Google, or a generic Microsoft account) to authenticate. Once verified, your Azure AD issues a token granting access to the shared resource.
Exam Tips: Answering Questions on Manage external users (B2B) for AZ-104 When facing scenario-based questions in the exam, look for these key details:
1. Bulk Operations: If a question asks how to invite 50 partners at once, the answer is Bulk Invite using a CSV file. Do not confuse this with 'Bulk Create', which is for creating internal Azure AD users.
2. UserType (Guest vs. Member): Understand that you can change a user's UserType from Guest to Member (or vice versa). If a contractor becomes a full-time employee, you might convert their account to 'Member' ideally, though often a new account is created. Only Members can invite other guests by default (unless settings are changed), whereas Guests usually cannot invite others unless specifically allowed in 'External collaboration settings'.
3. Authentication Source: Remember that Azure AD B2B users authenticatate in their home tenant. If an exam question mentions a Guest user forgot their password, you (the host admin) cannot reset it. The user must reset it in their own organization.
4. External Collaboration Settings: Be familiar with the restrictions you can place on invitations. Questions may ask how to prevent invites being sent to a competitor's domain. The solution is configuring Collaboration restrictions to deny invitations to specific domains (Deny list) or only allow specific domains (Allow list).
5. Guest Inviter Role: If a specific user needs the ability to invite guests but shouldn't be a Global Admin, assign them the Guest Inviter role.