We hope this example helped clarify the three terms we introduced earlier. Azure Active Directory (more commonly known as Azure AD) is our Identity and Access Management service for the Azure cloud. Azure AD is a global service which implies that it spans all of the Azure cloud regions across the world.

Azure AD is first and foremost an Identity and Access Management platform where we can have our identity resources exist in an identity repository and we can also use those identities to provide them access to resources, using entities like roles. 2. Identity security

Most businesses that utilize Microsoft at some level within their IT ecosystem should be using Azure Active Directory to help manage identity services. In fact, you may already be using Azure AD — it’s bundled with Microsoft 365 and Azure subscriptions. Microsoft has four Azure Active Directory editions that businesses can choose from.

Azure Directory is used to maintain the permissions and users' other requirements on the on-premises by using a local network. Azure Active Directory is used to maintain the permissions to the users and applications within the cloud with the help of a cloud network. Azure Active Directory servers as an Identity Provider for the Azure Cloud.