Understanding the difference between Microsoft Entra ID and Entra ID Tenant is an important part of learning Azure identity management. Many beginners get confused between these two terms and may think both mean the same thing.
However, there is a simple difference between them. In this blog, we will understand that difference step by step with simple examples.
Microsoft Entra ID is a cloud-based identity and access management service. It provides the tools required to manage users, groups, and authentication.
When you go to the Azure portal and access Microsoft Entra ID, you get the tools through which you can create users and groups. Entra ID also handles the authentication of those users.
Suppose a company has employees who need to log in to the Azure portal. Those employees need identities, such as a username and password. Microsoft Entra ID provides the service through which these identities can be created and authenticated.
Now, the next question is: Where are those users and groups actually stored? For that, we need to understand the Entra ID Tenant.
An Entra ID Tenant is a dedicated instance of Microsoft Entra ID representing an organization or company. Inside that tenant, the company's users and groups are stored.
If I need to create a user inside the tenant, I use the Microsoft Entra ID service, and the user gets created inside that organization's Entra ID Tenant.
Every Entra ID Tenant also has a domain. The default domain looks something like something.onmicrosoft.com.
An organization can also configure a custom domain instead of using only the default domain. This allows the company to use its own domain name for user identities.
A simple way to understand this concept is with the example of a building. A building provides common facilities such as a lift, water supply, security, and other services. Inside that building, there are different rooms.
Each room is separate from the others, but all of them use the services provided by the same building. Now, relate this example to Microsoft Entra ID.
One room is isolated from another room, but both still use the services provided by the building. In the same way, one Entra ID Tenant is isolated from another tenant, while both use the services provided by Microsoft Entra ID.
For example, imagine two companies using Microsoft Entra ID. Each company has its own tenant containing its own users and groups. Although both companies use the same identity management service, their tenants are separate from each other.
This building and room example makes the difference between Microsoft Entra ID and an Entra ID Tenant easy to understand and remember.
Microsoft Entra ID and an Entra ID Tenant are closely related, but they describe two different things. Microsoft Entra ID is the cloud identity and access management service, while an Entra ID Tenant is a dedicated instance of that service for an organization.
Microsoft Entra ID provides tools to manage users, groups, and authentication, while the Entra ID Tenant stores the organization's users and groups.
If you want to understand Microsoft Entra ID, Entra ID Tenants, and other Azure concepts through practical demonstrations, explore our Azure Cloud with GenAI Training at Attari Classes. Our training focuses on live, hands-on practical learning to help you understand these technologies.
Microsoft Entra ID is a cloud-based identity and access management service, while an Entra ID Tenant is a dedicated instance of that service containing an organization's users, groups, and identity-related settings.
Users and groups are stored as directory objects within an organization's Microsoft Entra ID Tenant. The Entra ID service provides the tools used to create and manage them.
When a Microsoft Entra ID Tenant is created, it receives an initial domain name ending in onmicrosoft.com, such as something.onmicrosoft.com.
Yes. An organization can add and verify a custom domain, such as attari.com, in its Microsoft Entra ID Tenant. This allows the organization to use its own domain for user identities.
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