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Azure Active Directory (AAD)

Azure Active Directory (AAD)

  • Definition: Azure Active Directory is a cloud-based identity and access management service provided by Microsoft.
  • Before going to Azure Active Directory (AAD), let’s clear the concept about Active Directory (AD).

Active Directory (AD):

  • Most of the users must be aware of Active Directory.
  • It was designed for traditional office use like physical access, printers, computers, etc.… Basically, for On-premises and NOT for Web/Cloud
  • Although both AD and AAD products are used to manage the users, both are completely different.

Azure Active Directory Service (AAD Service)

Let’s focus on the key points.

  • AAD is the main tool to manage users and permissions in Azure.
  • You cannot have an Azure account without an AAD service.
  • Every Azure account must have a first user and owner and this first user must be in the AAD instance.
  • AAD service is the first thing you get when you create an Azure account.
  • AAD can be very helpful to set up a Hybrid infrastructure where AAD is managing the users on On-Premises as well as on the cloud.


  • Tenant represents your organization in Azure
  • Tenant is a dedicated instance of AAD. This is what an organization receives when it signs up for Azure.
  • Each Azure Tenant is separate from any other Tenant.
  • 1 user can belong to a maximum of 500 tenants as a guest or member.
  • Every single Azure user is a member of at least one tenant.


  • Subscriptions are billing entities.
  • This will get billing invoices every month for the services that the user use and are associated with the subscription.
  • You can have multiple subscriptions for a single tenant.
  • If you don’t pay the bills of the subscriptions, all the services associated with that subscription will stop.

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