Cloud, on-premises, and hybrid identity concepts are fundamental to understanding how organizations manage user authentication and access in Microsoft 365 environments.
**On-Premises Identity:**
This traditional approach stores user identities within an organization's local Active Directory Domain…Cloud, on-premises, and hybrid identity concepts are fundamental to understanding how organizations manage user authentication and access in Microsoft 365 environments.
**On-Premises Identity:**
This traditional approach stores user identities within an organization's local Active Directory Domain Services (AD DS). All authentication occurs within the company's own infrastructure. Users log in using credentials stored on local servers, and IT administrators maintain complete control over the identity infrastructure. This model works well for organizations with resources contained entirely within their physical network boundaries.
**Cloud Identity:**
With cloud identity, user accounts exist exclusively in Azure Active Directory (Azure AD), Microsoft's cloud-based identity and access management service. Organizations create and manage identities entirely in the cloud, with no dependency on local infrastructure. This approach suits organizations that have fully embraced cloud services and don't maintain legacy on-premises applications. Authentication happens through Microsoft's cloud infrastructure, enabling access to Microsoft 365 services and other cloud applications.
**Hybrid Identity:**
Hybrid identity combines both on-premises and cloud approaches, allowing organizations to maintain their existing Active Directory while extending identities to Azure AD. Microsoft provides tools like Azure AD Connect to synchronize user accounts between on-premises AD and Azure AD. This enables Single Sign-On (SSO) capabilities, allowing users to access both local resources and cloud services with one set of credentials. Hybrid identity is ideal for organizations transitioning to the cloud while maintaining some on-premises infrastructure.
**Authentication Options:**
Microsoft supports various authentication methods including password hash synchronization, pass-through authentication, and federation with Active Directory Federation Services (ADFS). Each option offers different benefits regarding security, complexity, and user experience.
Understanding these identity concepts helps organizations choose the right approach for their security requirements, compliance needs, and operational preferences within the Microsoft 365 ecosystem.
Cloud, On-Premises, and Hybrid Identity Concepts
Why It Is Important
Understanding identity concepts is fundamental to modern IT security and management. Identity serves as the new security perimeter in today's distributed work environment. Organizations must authenticate and authorize users across various platforms, making identity management critical for protecting resources, enabling productivity, and maintaining compliance.
What It Is
On-Premises Identity On-premises identity refers to identity management systems hosted and managed within an organization's own data centers. The most common example is Active Directory Domain Services (AD DS), which stores user accounts, passwords, and group memberships locally on company-owned servers.
Cloud Identity Cloud identity involves managing user identities through cloud-based services. Microsoft Entra ID (formerly Azure Active Directory) is Microsoft's cloud-based identity and access management service. Users exist only in the cloud, and authentication happens through cloud services.
Hybrid Identity Hybrid identity combines on-premises and cloud identity solutions, allowing users to have a single identity that works across both environments. This is achieved through tools like Microsoft Entra Connect, which synchronizes on-premises Active Directory with Microsoft Entra ID.
How It Works
On-Premises Identity: - Users authenticate against local domain controllers - Passwords and credentials stored on local servers - IT team manages all infrastructure and updates - Access limited to corporate network or VPN
Cloud Identity: - Authentication occurs through Microsoft Entra ID - No on-premises infrastructure required - Accessible from anywhere with internet connection - Microsoft manages the underlying infrastructure
Hybrid Identity: - Microsoft Entra Connect synchronizes identities between on-premises AD and Microsoft Entra ID - Users can use same credentials for both environments - Supports password hash synchronization, pass-through authentication, or federation - Provides seamless single sign-on experience
Key Synchronization Methods in Hybrid Identity: 1. Password Hash Synchronization (PHS) - Syncs a hash of the password to the cloud 2. Pass-Through Authentication (PTA) - Validates passwords against on-premises AD 3. Federation with AD FS - Uses on-premises federation servers for authentication
Exam Tips: Answering Questions on Cloud, On-Premises, and Hybrid Identity Concepts
1. Know the key tool: Microsoft Entra Connect is essential for hybrid identity scenarios. If a question mentions synchronizing on-premises identities to the cloud, this is typically the answer.
2. Understand the scenarios: - New organizations with no existing infrastructure often use cloud-only identity - Organizations with existing Active Directory typically implement hybrid identity - Legacy systems may rely on on-premises identity
3. Remember Single Sign-On (SSO): Hybrid identity enables users to access both on-premises and cloud resources with one set of credentials.
5. Watch for keywords: - 'Synchronize' or 'sync' suggests Microsoft Entra Connect - 'Single identity across environments' points to hybrid - 'No on-premises servers' indicates cloud-only
6. Understand authentication methods: Know the difference between password hash sync, pass-through authentication, and federation for exam questions about authentication flows.
7. Consider organizational needs: Questions often present scenarios where you must choose the appropriate identity model based on business requirements, existing infrastructure, and security needs.