Identity in Microsoft 365 — Built on Microsoft Entra ID

Identity in Microsoft 365 (Entra ID)

1 min readPublished 22 Jul 2026

Track your progress. Sign in to mark this guide complete and build your Job Readiness Score.

Every Microsoft 365 user, licence and access decision flows through Microsoft Entra ID. Rather than repeat it, here's the single authoritative explainer — study it once, apply it across Azure and M365.

Interactive explainer

Microsoft Entra ID

Cloud identity (formerly Azure AD) behind Microsoft 365 and Azure.

Tap or hover a part to learn more.

1. Cloud identity provider

Formerly Azure AD.

Microsoft Entra ID (previously Azure Active Directory) is Microsoft's cloud identity and access service behind Microsoft 365 and Azure. It is NOT a cloud-hosted domain controller — it's a modern, internet-facing identity platform using OAuth 2.0/OpenID Connect/SAML rather than Kerberos/LDAP.

Check your understanding

1. Microsoft Entra ID is best described as…

2. What evaluates signals like device, location and risk to allow or block sign-in?

Keep learning

Microsoft Entra ID Active Directory CompTIA Security+

Practise this in AI Interview™

Why it matters for Microsoft 365

Sign-in & SSO — one identity for Teams, Exchange, SharePoint and thousands of apps.
Licensing — features are enabled by assigning licences to Entra identities.
Access control — groups, roles and Conditional Access decide who can do what.

For the full treatment (hybrid identity, Conditional Access, MFA), see the authoritative Microsoft Entra ID article — we reuse it here rather than duplicating it.

Interview Intelligence

How this topic actually shows up in interviews — and how to demonstrate you understand it.

Why employers ask about this

Identity is the foundation of M365 and cloud security; employers rate it highly.

Technical questions

How does Microsoft 365 handle identity?+

Through Entra ID — one identity for sign-in, licensing and access across all services.

Behavioural questions

Describe improving sign-in security for a team.+

Show enabling MFA and Conditional Access via Entra.

Real-world scenarios

“A new starter can't sign in to Teams.”+

Expected answer: Check their Entra account is active and licensed, and review Conditional Access policies.

Practise in AI Interview™Rehearse these questions, scored.Plan with Career Coach™A personalised path to your goal.Evidence it in Career Passport™Prove this skill to employers.

Employability Intelligence

Where this knowledge takes you — the jobs, skills and certifications it feeds into.

Relevant roles

Help Desk AnalystM365 AdministratorAzure Administrator

Skills you're proving

Entra IDLicensingAccess control

Recommended certifications

CompTIA Security+

Career progression

M365 Fundamentals → SC-900/MS-900 → Azure/Identity roles.

What employers expect

That you can support and help secure the Microsoft 365 environment most organisations rely on.

Frequently asked questions

What is Microsoft 365 identity built on?

Microsoft Entra ID (formerly Azure AD), which handles sign-in, licensing and access for all M365 services.

Is Entra ID the same as on-prem Active Directory?

No — it's a cloud identity provider using modern protocols; see the Entra ID article for details.

How are M365 features enabled for a user?

By assigning the appropriate licence to their Entra ID identity.

Practise what you've learned

Turn this guide into real, evidenced progress

Missiora helps you measure, improve and evidence the capabilities employers actually value — start with the tools best suited to this topic.

Published by

Missiora

Missiora is an AI Employability Intelligence platform. Our resources are researched and reviewed by the Missiora team to help you measure, improve and prove your career readiness.