Hybrid IT environments, identity is the new perimeter—and protecting it requires visibility across both cloud and on-premises systems. While Microsoft Entra secures cloud identities with intelligent access controls, Microsoft Defender for Identity brings deep insight into your on-premises Active Directory. Together, they form a powerful duo for comprehensive identity protection.
Why Hybrid Identity Protection Matters
Most organizations haven’t fully moved to the cloud. Legacy systems, on-prem applications, and hybrid user scenarios are still common, and attackers know it. They exploit these gaps using techniques like:
- Pass-the-Hash and Pass-the-Ticket attacks
- Credential stuffing and brute-force logins
- Privilege escalation and lateral movement
Without visibility into on-prem identity activity, these threats can go undetected. That’s where Defender for Identity steps in.
What Is Microsoft Defender for Identity?
Defender for Identity is part of Microsoft Defender XDR—a cloud-based solution that monitors on-premises Active Directory for suspicious behavior. It uses behavioral analytics and threat intelligence to detect identity-based attacks in real time.
Key capabilities:
- Detects compromised accounts and insider threats
- Monitors lateral movement and privilege escalation
- Surfaces risky users and abnormal access patterns
- Integrates with Microsoft 365 Defender and Sentinel for unified response
Why It Pairs Perfectly with Microsoft Entra
Microsoft Entra (formerly Azure AD) protects cloud identities with features like Conditional Access, Multifactor Authentication, and Identity Governance. But Entra alone can’t see what’s happening in your on-prem AD.
By combining Entra and Defender for Identity, you get:
- End-to-end visibility across cloud and on-prem environments
- Real-time threat detection for suspicious activities like lateral movement, privilege escalation, and domain dominance
- Behavioral analytics to identify compromised accounts and insider threats
- Integrated response capabilities to contain threats quickly and minimize impact
- Actionable insights that help strengthen your identity posture and reduce risk
Together, they deliver comprehensive identity protection—giving you the clarity, control, and confidence to defend against modern threats.
Real-World Impact
Imagine a scenario where an attacker gains access to a legacy on-prem account and begins moving laterally across systems. Defender for Identity detects the unusual behavior and flags the account as risky. Entra then blocks cloud access based on Conditional Access policies tied to that risk signal—stopping the attack before it spreads.
Getting Started
- Deploy Defender for Identity sensors on your domain controllers
- Install a sensor - step-by-step instructions to install Defender for Identity sensors on your domain controllers to begin monitoring on-premises identity activity.
- Activate the sensor on a domain controller - Guidance on activating the installed sensor to ensure it starts collecting and analyzing data.
- Deployment overview - A high-level walkthrough of the Defender for Identity deployment process, including prerequisites and architecture.
- Connect Defender for Identity to Microsoft 365 Defender
- Integration in the Microsoft Defender portal - Learn how to connect Defender for Identity to Microsoft 365 Defender for centralized threat detection and response.
- Pilot and deploy Defender for Identity - Best practices for piloting Defender for Identity in your environment before full-scale deployment.
- Enable risk-based Conditional Access in Entra
- Configure risk policies in Entra ID Protection - Instructions for setting up risk-based policies that respond to identity threats in real time.
- Risk-based access policies overview - An overview of how Conditional Access uses risk signals to enforce adaptive access controls.
- Use Entra ID Governance to enforce least privilege
- Understanding least privilege with Entra ID Governance - Explains how to apply least privilege principles using Entra’s governance tools.
- Best practices for secure deployment - Recommendations for securely deploying Entra ID Governance to minimize identity-related risks.
- Integrate both with Microsoft Sentinel for advanced hunting
- Microsoft Defender XDR integration with Sentinel - How to connect Defender for Identity and other Defender components to Microsoft Sentinel for unified security operations.
- Send Entra ID data to Sentinel - Instructions for streaming Entra ID logs and signals into Sentinel for deeper analysis.
- Microsoft Sentinel data connectors - A catalog of available data connectors, including those for Entra and Defender for Identity, to expand your threat detection capabilities.
Final Thoughts
It's the perfect time to evaluate your identity protection strategy. By pairing Microsoft Entra with Defender for Identity, you gain full visibility across your hybrid environment—so you can detect threats early, respond quickly, and protect every identity with confidence. Ready to strengthen your identity perimeter? Start by deploying Defender for Identity and configuring Entra policies today.
