Updated: December 27, 2023 (September 17, 2023)

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The History of Entra ID

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330 wordsTime to read: 2 min
Wes Miller by
Wes Miller

Wes Miller analyzes and writes about Microsoft’s security, identity management, and systems management technologies. Before joining Directions on Microsoft, Wes... more

Entra ID (previously called Azure Active Directory [AAD]) is the identity and access management (IAM) service that underpins all Microsoft online services.

The identity infrastructure known today as Entra ID first became generally available as the free identity provider for Microsoft’s Business Productivity Online Suite (BPOS) collection of hosted services and Office desktop applications as a subscription.

AAD’s initial focus appears to have been purely acting as a multi-tenant capable identity provider for Microsoft’s hosted services. Despite the similar naming it was not intended to be, and cannot act as, an exact replacement for Active Directory (AD) on-premises, which accommodates a much broader range of functions.

Just as BPOS evolved to become Office 365, AAD expanded beyond this free tier to encompass two paid tiers (AAD Basic and AAD Premium), adding licensing for Azure multifactor authentication (MFA), reporting, and customization capabilities.

In 2016, Microsoft introduced AAD Premium P2, which included identity protection (to help discover user credentials that are either at risk or compromised).

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