Microsoft Entra ID
Microsoft Entra ID is Microsoft's cloud-based identity and access management platform - the system that controls who can sign in to your business's apps, files, and data, and from which devices. It was formerly known as Azure Active Directory (Azure AD), and it's the security layer behind every Microsoft 365 sign-in.
If a staff member logs into Outlook, Teams, or SharePoint, Entra ID is what checks their identity, applies your security policies, and decides whether to let them in. Get it configured properly and it becomes one of the strongest, lowest-cost security upgrades available to your business. Get it left on default settings - which is what most businesses do - and it becomes a wide-open door.
Is Entra ID the Same as Azure Active Directory?
Yes. Microsoft renamed Azure Active Directory to Microsoft Entra ID in 2023. The underlying service, your existing configuration, and your licences didn't change - only the name and the icon did. If your IT provider still refers to "Azure AD," they're talking about the same product. Some documentation and older support articles still use both names interchangeably.
What Does Microsoft Entra ID Actually Do?
- Authenticates every sign-in - verifying that the person logging in is who they say they are, using passwords, multi-factor authentication (MFA), or biometrics
- Applies Conditional Access policies - blocking or allowing sign-ins based on location, device health, and risk level (for example, blocking a login attempt from overseas at 3am)
- Manages single sign-on (SSO) - so staff sign in once and get access to Microsoft 365 apps and approved third-party tools without re-entering passwords everywhere
- Controls role-based access - making sure a junior staff member can't see finance records just because they have a company login
- Logs every sign-in and access event - giving you an audit trail if something goes wrong or a regulator asks questions
- Manages guest and external access - so a contractor or client you've added to a Teams channel doesn't end up with more access than intended
This sits underneath everything else in your Microsoft 365 environment, including Teams, SharePoint, and Exchange - which is why misconfigured Entra ID tends to cause problems everywhere at once.
Microsoft Entra ID Licensing: Free, P1, and P2 Explained
Every Microsoft 365 subscription includes a version of Entra ID, but the tier you're on determines what security features are actually switched on.
Tier
Included with
What you get
Entra ID Free
Any Microsoft 365 or Azure subscription
Basic user/group management, SSO to Microsoft 365 apps, self-service password reset for cloud users
Entra ID P1
Microsoft 365 Business Premium, E3
Conditional Access, hybrid identity with on-premise Active Directory, dynamic groups
Entra ID P2
Microsoft 365 E5
Everything in P1, plus Entra ID Protection (risk-based sign-in detection) and Privileged Identity Management (just-in-time admin access)
Most small and mid-sized Sydney businesses are already paying for P1-level features through Business Premium but have never had them switched on. Part of our setup process is checking what you're entitled to before recommending you pay for anything extra.
Entra ID and Australian Compliance
For businesses handling client financial data, health records, or personal information, Entra ID isn't just convenient - it's part of meeting your obligations under the Privacy Act 1988 (Cth) and the Australian Privacy Principles. It's also a core control in the ACSC Essential Eight, the Australian Cyber Security Centre's baseline framework for protecting against common cyber threats, specifically around multi-factor authentication and restricting administrative privileges.
Properly configured, Entra ID gives you the audit logs and access controls that professional indemnity insurers, regulators, and clients increasingly expect to see documented - not just assumed.
(Note: Code Hyper One configures the IT controls; for confirmation of your specific regulatory obligations, we always recommend checking with a qualified compliance adviser or your industry body.)
A Common Scenario We Fix
A mid-sized Sydney professional services firm came to us storing client documents in a shared OneDrive folder that every staff member - including part-time admin staff - could access. There was no Conditional Access policy, so staff could sign in from personal devices anywhere in the world with just a password. We restructured access down to role-based permissions in SharePoint, enabled Conditional Access to block risky sign-ins, and turned on MFA business-wide. No change to how staff worked day to day - just a business that could no longer be breached by one stolen password.
Our Microsoft Entra ID Setup Process
- 1
Tenant review - we check your current licensing, existing configuration, and what security features are already available but switched off
- 2
Access mapping - reviewing who has access to what, and correcting over-permissioned accounts
- 3
MFA rollout - enabling multi-factor authentication business-wide with minimal disruption to staff
- 4
Conditional Access configuration - location, device, and risk-based sign-in policies tailored to how your team actually works
- 5
Guest and external access controls - locking down what contractors, clients, and partners can see
- 6
Monitoring and reporting - ongoing visibility into sign-in activity and flagged risks through our managed IT support and SOC/MDR monitoring
Entra ID Works Best as Part of a Wider Security Setup
Identity is one layer. We typically pair Entra ID configuration with:
- Microsoft Defender - for endpoint and threat protection tied to the same identities
- Email security - since compromised credentials usually start with a phishing email
- Security awareness training - because MFA fatigue attacks target your staff, not your software
- Dark web monitoring - to flag if a staff member's credentials have already been leaked
- Vulnerability scanning and penetration testing - to confirm your access controls hold up under real attack conditions
Why Sydney Businesses Choose Code Hyper One for Entra ID
- We check what you already own before selling you more - many businesses are paying for P1-level Entra ID features through Business Premium and never using them
- Local team, based in Bella Vista, Sydney - not an offshore helpdesk reading from a script
- Configured for your business, not a generic template - access policies built around how your staff actually work
- Ongoing management, not a one-off install - identity security needs monitoring as staff, devices, and risks change, delivered through our IT consulting and managed support services
Frequently Asked Questions
Is Microsoft Entra ID the same as Azure Active Directory?
Yes. Microsoft renamed Azure Active Directory to Microsoft Entra ID in 2023. It's the same underlying service - only the name changed.
Do I need to pay extra for Microsoft Entra ID?
A free tier is included with any Microsoft 365 or Azure subscription. More advanced features like Conditional Access require Entra ID P1, which is included in Microsoft 365 Business Premium and E3. Many businesses already have access to these features without realising it.
What's the difference between Entra ID and Microsoft Defender?
Entra ID controls who can sign in and access your systems (identity and access management). Microsoft Defender protects devices and detects threats once someone is inside your environment (endpoint and threat protection). They're complementary, not interchangeable.
Does Entra ID help with Australian Privacy Act compliance?
It provides IT controls - access restrictions, audit logs, and MFA - that support Privacy Act and Australian Privacy Principles obligations. It doesn't replace advice from a qualified compliance adviser on your specific regulatory requirements.
How long does it take to set up Entra ID properly?
A full review, MFA rollout, and Conditional Access configuration for a small to mid-sized business typically takes one to two weeks, done in stages to avoid disrupting staff logins.
Can Entra ID stop a stolen password from being used?
Yes, when MFA and Conditional Access are configured correctly. A stolen password alone won't get an attacker in if a second verification factor and risk-based sign-in policies are in place.
Ready to Find Out What's Actually Switched On in Your Tenant?
Most businesses are already paying for Entra ID security features they've never used. Book a free review and we'll tell you exactly what you have, what's missing, and what it would take to close the gap.
Get My Free Entra ID Review Or explore our full Microsoft 365 services and network security services.