If your organization uses Active Directory and Microsoft 365, you need a way to keep identities in sync. That is where Microsoft Entra Connect comes in. 

It links on-prem Active Directory to Microsoft Entra ID so users can access cloud apps with the same accounts they use internally. 

This article breaks down what Entra Connect does, how it works, and when to use it. 

What is Microsoft Entra Connect? 

Microsoft Entra Connect links your on-premises Active Directory to Microsoft Entra ID so identities stay consistent across environments. You install it on a server, connect your directory, and choose how users, groups, and credentials sync to the cloud. 

IT teams use it to support hybrid identity setups where on-prem systems still matter, but cloud apps handle daily work and access. 

How Does Microsoft Entra Connect Work? 

Microsoft Entra Connect runs as a sync service on a Windows server inside your environment. You point it to your on-premises Active Directory, then connect it to Microsoft Entra ID using an admin account. 

The tool reads user, group, and attribute changes from Active Directory and pushes those updates to Entra ID on a schedule you control.

When someone signs in, authentication flows through the setup you choose, such as password hash sync or pass-through authentication. Over time, the sync engine keeps both directories aligned as changes happen. 

Common Use Cases for Microsoft Entra Connect 

1. Supporting Hybrid Identity Environments 

Many organizations still rely on on-premises Active Directory while moving apps and collaboration tools to Microsoft 365. Microsoft Entra Connect bridges that gap. 

IT teams keep Active Directory as the source of truth while Entra ID handles cloud access. Users sign in with the same credentials across on-prem systems and cloud apps, which reduces confusion and login issues. 

2. Centralizing User Authentication Across Cloud Apps 

Entra Connect helps IT teams manage authentication from one place instead of juggling separate identity stores. 

You create or update users in Active Directory, and those changes flow into Entra ID. Users then access Microsoft 365, SaaS apps, and internal tools with the same account.

This approach simplifies onboarding and offboarding, since IT teams avoid duplicating work across systems. When an employee leaves, disabling the account in Active Directory cuts access everywhere. 

3. Managing Password Sync and Sign-In Methods 

Organizations often use Entra Connect to control how users sign in to cloud services. IT teams choose options like password hash sync or pass-through authentication based on security and compliance needs. 

Users keep a familiar sign-in experience, while IT teams avoid managing separate password policies for cloud and on-prem environments. 

This reduces help desk tickets tied to password confusion and expired credentials. And over time, it gives IT teams flexibility to adjust authentication methods without redesigning the entire identity setup. 

4. Keeping User and Group Data Consistent 

Entra Connect helps maintain consistency across directories as teams grow and change. When IT updates job titles, departments, or group memberships in Active Directory, those updates sync to Entra ID.

Cloud apps that rely on group membership or user attributes stay accurate without manual cleanup. 

This matters for access control, app assignments, and license management. Without a sync tool, small data mismatches add up fast. 

5. Enabling Gradual Cloud Migration 

Organizations do not move to the cloud all at once. Entra Connect supports a phased approach. 

IT teams keep existing identity processes while shifting workloads to Microsoft 365 or other cloud platforms. Users notice fewer disruptions because accounts, passwords, and access rules stay familiar. 

This approach lowers migration risk and gives teams time to modernize systems at a controlled pace. 

Microsoft Entra Connect vs Microsoft Entra Cloud Sync: What’s the Difference? 

Microsoft Entra Connect and Microsoft Entra Cloud Sync both sync identities from on-prem Active Directory to Microsoft Entra ID, but they fit different setups. 

Entra Connect runs a full sync engine on a dedicated Windows server. IT teams control sync rules, authentication methods, and advanced hybrid scenarios directly from that server. 

On the other hand, Entra Cloud Sync removes most of that infrastructure. It uses lightweight agents and pushes more management into the cloud. You give up some flexibility, but you gain simplicity, easier maintenance, and fewer moving parts. 

Final Thoughts 

Microsoft Entra Connect plays a specific role in hybrid identity setups. It gives IT teams control when on-prem Active Directory still drives user management and access.  

It works best when environments need deeper configuration and tighter integration with existing systems. Before choosing it, you should understand your identity complexity, your long-term cloud plans, and whether simpler sync options already meet your needs. 

Frequently Asked Questions