What is Azure Active directory | Azure AD User creation | Azure AD licenses

Jan 24, 20235 min read

Updated: Jan 12

In today’s digital-first business environment, identity management and secure access to resources are crucial for organizations. Azure Active Directory (Azure AD) is a cloud-based identity and access management service provided by Microsoft that enables businesses to manage users, devices, applications, and security policies within the Microsoft ecosystem. It helps organizations streamline user authentication, facilitate single sign-on (SSO), and ensure secure access to both on-premises and cloud-based resources.

Azure AD integrates with a range of Microsoft services (such as Office 365, Azure, and Microsoft Teams) and third-party applications, making it a central hub for identity management and security for modern enterprises.

In this blog article, we’ll explain what Azure Active Directory is, how to create Azure AD users, and explore the different Azure AD license options that can help your organization manage identities and access effectively.

What is Azure Active Directory?

Azure Active Directory is a cloud-based identity management platform that serves as the backbone of identity and access management in Microsoft 365 and Azure environments. Azure AD is different from traditional Active Directory (AD) because it is built for the cloud, rather than on-premises, and supports modern authentication methods like SSO and multi-factor authentication (MFA).

Key features of Azure AD include:

Identity and Access Management: Azure AD helps organizations securely manage user identities and access to applications, both on-premises and in the cloud.
Single Sign-On (SSO): Azure AD allows users to log in once and access all their applications without having to sign in again.
Multi-Factor Authentication (MFA): Azure AD supports additional layers of security by requiring multiple methods of identity verification (e.g., password + text message) for sensitive actions.
Conditional Access: You can set policies that allow or block access to applications based on factors like user location, device health, and more.
Integration with Microsoft 365 and Azure Services: Azure AD is the identity platform for Microsoft 365, Azure, and other Microsoft cloud services, making it easy to manage and control access to company resources.

Why is Azure AD Important?

With organizations increasingly adopting cloud applications and remote workforces, traditional identity management systems that rely on on-premises Active Directory may not be sufficient. Azure AD solves these challenges by providing a unified identity solution that extends beyond the corporate network, enabling secure access to resources anytime, anywhere.

Azure AD benefits organizations by:

Centralizing Identity Management: It allows businesses to manage and secure identities in one place, streamlining administrative tasks and reducing the risk of security breaches.
Enhancing Security: Azure AD offers strong security features like MFA and conditional access to protect against unauthorized access.
Supporting Hybrid IT Environments: Azure AD works seamlessly with traditional Active Directory and can be integrated into hybrid cloud environments.
Enabling Secure Collaboration: Azure AD facilitates secure external collaboration by allowing businesses to manage access for external partners, vendors, or customers through B2B collaboration.

How to Create Users in Azure Active Directory?

Creating users in Azure AD is an essential task for administrators. Azure AD allows you to manually create users, bulk import them, or even automate user creation through integration with HR systems.

Here’s how you can manually create a user in Azure Active Directory:

Step 1: Sign in to Azure Portal

Go to the Azure portal at https://portal.azure.com and sign in with your administrator account.

Step 2: Navigate to Azure Active Directory

In the Azure portal, select Azure Active Directory from the left-hand menu. This takes you to the Azure AD management section.

Step 3: Add a New User

In the Azure Active Directory section, click on Users.
Click + New User at the top of the page to create a new user.

Step 4: Fill in User Details

Identity: Enter the user’s name and username (email address) for their Azure AD account.
Role: Choose the user’s role. You can assign standard user roles or administrative roles based on the level of access the user needs.
Profile Information: Enter additional details like the user’s job title, department, and contact information (optional).

Step 5: Set the User’s Password

Choose whether to auto-generate the password or create one manually.
You can also enable the option to require the user to reset their password upon first sign-in.

Step 6: Assign Roles and Groups (Optional)

If necessary, assign the user to specific groups or roles within Azure AD, or assign applications that they need access to.

Step 7: Create the User

Once you’ve filled out the required information, click Create to add the user to Azure AD.

The user will now be listed in your Azure AD directory, and they’ll receive the necessary login details.

Azure AD Licenses Explained

Azure Active Directory offers several licensing options that allow organizations to customize their identity management solution based on their needs. These licenses vary in terms of features and capabilities, with options that cater to small businesses, enterprises, and everything in between.

1. Azure AD Free

The Azure AD Free edition is available with any Microsoft 365 or Office 365 subscription and provides basic identity management features for small to medium-sized businesses. Features include:

User and group management.
Single sign-on (SSO) to cloud apps.
Multi-factor authentication (MFA) for basic scenarios.
Directory synchronization with on-premises AD.

2. Azure AD Premium P1

Azure AD Premium P1 is designed for organizations that need more advanced security, user management, and reporting features. This license is suitable for medium to large enterprises. Key features include:

All features from Azure AD Free.
Advanced security features like conditional access.
Self-service password reset for end users.
Microsoft Identity Protection for risk-based conditional access.
Group-based access management.
Integration with on-premises AD via Azure AD Connect.

3. Azure AD Premium P2

Azure AD Premium P2 is the most comprehensive offering, tailored for large enterprises or organizations with complex identity and security requirements. It includes all the features of Azure AD Premium P1, with additional capabilities like:

Identity protection with risk-based conditional access.
Azure AD Privileged Identity Management (PIM) to manage and monitor privileged accounts.
Access reviews to ensure users have the right level of access.
Azure AD B2B collaboration for secure sharing with external partners.
Azure AD B2C for managing customer identities.

4. Microsoft 365 Business Premium

This license offers a bundle of productivity, security, and identity management features for small to medium-sized businesses. It includes:

Azure AD Premium P1 features.
Device management via Microsoft Intune.
Microsoft Defender for Office 365.
Additional security and compliance tools for Microsoft 365 apps.

How to Assign Azure AD Licenses to Users

Once you’ve selected the right Azure AD license for your organization, you can assign it to individual users through the Azure portal.

Step-by-Step Process to Assign Licenses:

In the Azure Active Directory section of the portal, click on Users.
Select the user to whom you want to assign a license.
In the user profile, click Licenses.
Click + Assignments and select the appropriate license(s) you want to assign.
Click Save to apply the license.

Conclusion

Azure Active Directory is a powerful cloud-based identity and access management solution that enables organizations to securely manage users, applications, and devices across the cloud. It’s a central hub for authentication, providing tools like SSO, MFA, and conditional access to ensure secure and efficient access to resources.

Creating users in Azure AD is a straightforward process, and choosing the right Azure AD license allows businesses to tailor the solution to meet their specific needs. Whether you’re managing a small team or a large enterprise, Azure AD provides the scalability, security, and integration capabilities needed to maintain control over your organization’s digital resources.

By understanding Azure AD’s features, licensing options, and user management, you can unlock the full potential of Microsoft’s cloud-based identity platform and enhance your organization’s security, compliance, and overall productivity.