Microsoft AZ-104 Certification Exams - Identity: Azure Active Directory

Category: Self-Service Password Reset Page 1 of 2

Azure Active Directory – Identity: Azure Active Directory

As mentioned in the introduction of this chapter, Azure AD is Microsoft’s cloud-based identity and access management (IAM) solution. Azure AD is an especially useful solution for IT admins, developers, and subscribers of various Microsoft solutions (such as Microsoft 365, Dynamics 365, and Azure). Primarily, Azure AD deals with helping employees to sign-in to various resources such as O365, M365, Dynamics, Azure, etc. However, the integration does not stop here; you can integrate Azure AD as the IAM solution for third-party applications and your internal applications as well. Developers are constantly working on integrating Azure AD as the IAM solution because of the increased reliability it provides. Since this book is about Azure administration, we will focus on how Azure AD is intended to help IT admins.

Benefits

Let’s explore the different benefits of Azure AD and why organizations should consider Azure AD as the IAM solution.

SSO to Cloud and On-Premises Applications  Having too many credentials for different applications increases the complexity and results in a higher chance of human error because an SSO solution will help users to sign in to all cloud applications, on-premises applications, and devices using their corporate credentials. Azure AD is not only meant for Microsoft Stack, but for thousands of SaaS applications such as Dropbox, ServiceNow, DocuSign, etc.

Easily Extend On-Premises Active Directory to the Cloud  When organizations move from on-premises to the cloud, there is a need to synchronize the users with the cloud. Otherwise, users will end up with two credentials, one for on-premises and another one for the cloud. To avoid this scenario and to provide a seamless SSO experience, Azure AD allows administrators to synchronize users, groups, passwords, and devices across both on-premises and the cloud. This is accomplished using a tool called Azure AD Connect that needs to be installed on your on-premises domain controller or any other domain-joined server with Windows Server 2012 or later, and it will help with the synchronization.

Cross-Platform Support  Regardless of what platform the user is using, be it iOS, Android, Windows, Linux, or macOS, the sign-in experience is going to be the same, and the users can sign-in to their applications using their work credentials.

Increase Security of Your On-Premises Applications  You can use the Azure AD Application Proxy service to access your on-premises applications via a secured remote access. The best part is you do not have to expose any additional ports on your on-premises firewalls; the access is managed by application proxy endpoints. The access can be tightened using multifactor authentication and conditional access policies.

Better Monitoring and Data Protection  Azure AD amplifies the overall security posture of your environment by providing unique identity protection features. Azure AD Identity Protection comprises several features including suspicious sign-in activity, risk alerts, etc. These triggers can be further integrated with conditional access policies to make business decisions. In addition to these capabilities, administrators can leverage security reports, sign-in activities, and potential vulnerability reports that are available off the shelf without the need to deploy any additional components.

Self-Service Capabilities  If you have worked as an IT administrator, you know most of the calls to the help desk will be regarding password resets. Azure AD offers a feature called Self-Service Password Reset by which users can reset their own passwords with the help of an authentication method such as phone, email, security questions, or a combination of these. IT admins need to enroll users into the SSPR program before they can use this feature. Enrolling is also self-serve, and the user will be prompted to verify the authentication methods. Enabling SSPR in your environment can elevate the security and reduce help-desk engagements.

If you are using Office 365, Azure, or Dynamics 365 in your environment, knowingly or unknowingly you are interacting with Azure AD to complete the authentication process.

We have been talking about Azure AD for a while now, and it is time that we understand the concepts that are part of Azure AD.

Azure AD: Licensing – Identity: Azure Active Directory

You have seen that Azure AD offers a lot of add-on features more than legacy identity and management solutions. These features come with a price, and not all organizations need all these features. Licenses are categorized based on the number of premium features it supports. There are four editions of Azure Active Directory.

Azure Active Directory Free  As the name implies, this is the free version of Azure Active Directory and offers minimal features such as user management, group management, Azure AD Connect for syncing on-premises identities, basic reporting, SSO, SSPR, etc. If you have not purchased any Azure AD license, this is going to be your default edition.

Azure Active Directory Microsoft 365 Apps  If you have O365, this edition of Azure AD is automatically provisioned for you. Besides the features offered by Azure AD Free, this edition offers additional functionalities such as IAM for Microsoft 365 Apps, branding, MFA, etc.

Azure Active Directory Premium P1  Azure AD Premium P1 offers all the capabilities of Azure AD Free and some additional premium features that can increase the overall security of your environment. Dynamic groups, self-serve group management, Microsoft Identity Manager, and password writeback are some of the additional features offered by Azure AD Premium P1.

Azure Active Directory Premium P2  This is the top edition of Azure AD and offers all features in the P1 and Azure AD Free editions; additionally, Identity Protection and Identity Governance are offered.

Table 1.1 provides a quick comparison of all editions of Azure AD and the features offered by each edition.

TABLE 1.1  Comparison of Azure AD Editions

FeatureFreeMicrosoft 365 AppsPremium P1Premium P2
Directory objects500,000UnlimitedUnlimitedUnlimited
Single sign-onUnlimitedUnlimitedUnlimitedUnlimited
Core identity and access management✓️✓️
Business-to-business collaboration✓️✓️✓️✓️
Identity and access management for Microsoft 365 apps✓️✓️✓️
Hybrid identities (password writeback)✓️✓️
Advanced group access management✓️
Conditional access✓️✓️
Identity protection✓️
Identity governance✓️

The pricing of Azure AD licensing can be reviewed on the Azure AD pricing page.

https://azure.microsoft.com/en-us/pricing/details/active-directory

In addition to these editions, if you already have an Office 365 E3/E5 license, then you can use the premium features of Azure AD, and you do not have to pay for these licenses separately. P1 is included in E3, and P2 is included in E5, respectively.

Since you have the basic understanding of the editions of Azure AD and how they are different from a traditional Active Directory deployment, let’s talk quickly about custom domains in Azure AD.

Adding Users 2 – Identity: Azure Active Directory

Additionally, we need to keep a couple of points in mind while managing users.

  • You must be a Global Administrator of the tenant to manage the users. This is one of the Azure AD roles that we will discuss later in this chapter. The Global Administrator role is like a superuser role and should be granted to users who need to manage all aspects of Azure AD. There are other roles like User Administrator who can manage the users, but this can be used only for managing non-admin accounts.
  • While creating a username, the name and password are the only mandatory options. You have two choices with password. First, you can let the system generate a password for the user. The second option is to bring your own password. In both cases, the user will be asked to change the password during the first sign-in, and as an administrator, you should be finding a way to securely share the password with the new user. The commonly used method is to email the new user’s manager.
  • Even though the users can be deleted (will be covered in the “Deleting and Modifying Users” section), you can restore these users within 30 days from the deletion date.

Now that we are clear about the different user types and key points, let’s create users in Azure AD, as shown in Exercise 1.2.

EXERCISE 1.2
 Creating Users in Azure AD

  1. Navigate to the All Users blade inside Azure Active Directory. You can follow the steps 1–5 of Exercise 1.1 to reach the All Users blade.
  2. Once you are in the All Users blade, you can click the New User option.

3. Selecting New User will display a window to input details of the new user you intend to create. You will be presented with two options, Create User and Invite User.

  1. Selecting Create User will help you create a cloud identity that will exist only in Azure AD. On the other hand, if you select Invite User, you can invite a person from another Azure AD or a person who doesn’t have an Azure AD account (Guest user) via an invitation process. In this exercise, we will choose Create User as our plan is to create a cloud identity user type.
  2. Here the username, name, and password are the mandatory fields. You can fill in the fields First Name, Last Name, Department, Job Title, Contact Info, Profile Picture, etc., if you’d like; they are optional. In the previous graphic, you can see that we have left Password as “Auto-generate password,” which means that the system will generate the password for the user. You can see the password by enabling the Show Password option.
  3. Since we have filled the mandatory fields, we can click Create to provision the user. Within a couple of seconds, you will get a notification that the user is created, and the new user will be visible in your All Users blade.

You have successfully created a new user in the Azure AD. As of now, we have covered two exercises where you are viewing and adding users to Azure AD. As an administrator, your responsibility does not stop here; in your daily tasks you will be asked to delete users when someone leaves the organization, modify user attributes when they move to a different department, or change their location. To give you the idea of how to delete and modify users, let’s head to the next section.

Bulk Operations – Identity: Azure Active Directory

In an enterprise environment, new users are added, updated, or deleted in bulk. Performing these actions one by one for each user is a hectic task, and there is a higher chance of human error. You need to automate these tasks and should be able to perform these tasks in bulk. Azure AD provides bulk operations by which you can create, invite (for guest users), delete, and download users in your directory. These bulk actions are achieved via uploading a CSV file with the details. This file template will be available for download from Azure Portal itself. In the next exercise, you will use a bulk operation to create nine users (all Avengers characters) in a single shot, and once they are visible on the portal, you will perform a bulk delete operation. See Exercise 1.4.

EXERCISE 1.4
 Performing Bulk Operations

  1. Navigate to the All Users blade. If you are not able to recall the steps to reach the All Users blade, please follow steps 1–5 of Exercise 1.1.
  2. Select Bulk Operations and then select Bulk Create.

3. Selecting Bulk Create will let you download a CSV template. You need to download the template, fill in the details, and upload it to Azure AD for processing. Azure will prompt you with the steps.

4. Once the file is downloaded, you can open it in Microsoft Excel and fill in the details. The headers will be auto populated; some of them are required, while some are optional. The fields that are required will have a [Required] tag in the header. The required fields are Name, Username, Initial Password, and Block Sign In. Fill in the template, as shown here.

  1. You can fill the optional details if required; however, it is mandatory to fill in the required fields; otherwise, the validation will fail.
  2. Let’s upload the file to Azure AD and see if we got it correct. You can use the upload option shown in step 3. If you closed the window after downloading the CSV file, you can click Bulk Operations ➢ Bulk Create and the upload window will be shown again. If the file is uploaded successfully, you will see a message on the screen. Once the file is uploaded, click Submit.

7. As soon as you click Submit, the status will change to “In Progress.” If the format is correct, then you will get a “Succeeded” message.

8. You can also verify the status of any bulk operation by navigating to the Bulk Operation Results blade. You will be able to troubleshoot from this blade if you get an error during the bulk operation.

9. Since our bulk operation was successful, let’s confirm if the users are visible in the All Users blade.

Similarly, you can perform bulk delete and bulk invite operations by downloading the corresponding CSV and uploading them back to Azure AD. Speaking about invitations, let’s see how external users can be invited to your tenant for collaboration.

 From the Deleted Users blade, you can perform bulk delete and restore operations if required.

Viewing Groups – Identity: Azure Active Directory

In Exercise 1.5, you will see how you can view groups in Azure AD.
If you are using a new setup, chances are you might not see any groups in your environment. This is fine; the purpose of the exercise is to make you understand how you can reach the Groups blade.

EXERCISE 1.5
Viewing Groups in Azure AD

  1. At this point, you should be familiar with the navigation in the Azure portal and how to reach the Azure Active Directory blade. Right below the Users option that you used earlier, you will be able to see Groups. Clicking Groups will take you to All Groups.
  1. If you take a close look at the graphic, you can see that this list provides a lot of insights about the listed groups. For example, you can see the group type (Security Group or Microsoft 365 Group), membership type (Dynamic or Assigned), group email (shown only for Microsoft 365 as there will be a shared mailbox), and source (synchronized from Windows Server AD or the cloud). These details are extremely useful in managing the groups and in understanding the properties of a group.
  2. Clicking any of the groups (you can skip this step if you do not have any groups in your environment) will give you a plethora of details about the group such as how many members are there, list of owners, group membership, device membership, etc.

Now that you know how to navigate to the Groups blade and find a group, let’s move on and see how you can add a new group.

Adding Groups
In this section, we will cover how you can add a new security group and Microsoft 365 group. In addition, you will see how you can work with dynamic rules and direct membership to these groups. Especially in Exercise 1.6, you will create a security group called Avengers and add the users we created in Exercise 1.4 via direct membership.

EXERCISE 1.6
Adding Security Groups to Azure AD

  1. Navigate to the Groups blade by following the steps mentioned in Exercise 1.5, and you will be able to see New Groups option.
  1. Since our first task is to create a security group, you can see that we have selected the following options:
    a. Group type: Security (as we need to create a security group).
    b. Group name: Avengers (as we are going to add the Avengers users here).
    c. Group description: This field is optional; if you need to add a description about the group, feel free to add it.
    d. Azure AD roles can be assigned to this group: Yes, this setting needs to be enabled if you plan to assign roles to this group from an access management perspective.
    e. Membership type: Assigned (as we are going to perform direct assignment).

f. Owners: You can select the owners for the group. This set of users will manage the group such as adding or removing users. You can search users, and add once you are done, click Select.

g. Members: This is the set of users who will be part of the group; we will select all users that we need in the group. Once they are selected, click Select to add members to the group.

  1. The new group window will now show the number of users you selected as owners and members. The next step is to click Create and create the group.

4. Navigate to All Groups and search for Avengers; you will be able to see the new group you created for our Avengers. Clicking the group name will reveal the properties of the group.

If you have followed these steps, then you have successfully completed the exercise to create a security group. Now let’s focus on Microsoft 365 groups and dynamic users in Exercise 1.7.

Security groups can also be created with dynamic memberships supporting both dynamic users and devices; we are going to use Microsoft 365 and dynamic users for demonstration purposes only. You can apply the same logic with security groups and dynamic users, if needed.

Deleting Groups – Identity: Azure Active Directory

Deleting groups is a straightforward process; however, you need to perform this action with caution because deleting a group in production may cause serious repercussions on access management. Some scenarios where you will need to delete a group include the following:

  • You selected the wrong group type while creating the group. This selection cannot be modified after creation; the only option is to delete the group and re-create the group with the right type.
  • You have a duplicate group.
  • You no longer need the group in your environment.

If you want to delete a group, you can navigate to Azure Active Directory ➢ Groups ➢ All Groups and open the group you want to delete. Clicking the Delete button as shown in Figure 1.6 will delete the group.

FIGURE 1.6 Deleting group

Updating details in a group is no different than updating the user properties. You can add or remove users any time from security groups or Microsoft 365 groups with an assigned membership type. However, in dynamic membership groups, you cannot manually add or remove users. The member management is completely managed by dynamic rules that you create. Azure gives you the option to modify the dynamic rules of your existing group without the need to re-create the group.

Now that are familiar with the user and group accounts in Azure AD, we will talk about the roles in Azure AD.

Azure AD Roles

Azure AD roles are used to manage the permissions that can be assigned to users. You can assign roles to users so they can perform certain actions such as resetting user passwords, assigning, or removing licenses, adding, or removing users, etc.

More than 50+ built-in roles are available in Azure AD so you can follow the principle of least privilege and assign users the permission that they need to complete the tasks given to them. Azure AD roles make sure that the users are not over-privileged or under-privileged with the permissions given to them. For example, if you want to give a user the permission to create/manage groups, create/manage groups settings such as naming and expiration policies, and view groups activity and audit reports, then Groups Administrator is the right role that can be assigned to the user.

Here is the complete list of roles available in Azure AD:

https://docs.microsoft.com/en-us/azure/active-directory/roles/permissions-reference

You can assign roles to the users from the Users ➢ Assigned Roles blade. At the time of authoring this book, assigning roles to groups is in preview. If you would like to know more about this preview feature, refer to this document:

https://docs.microsoft.com/en-us/azure/active-directory/roles/groups-concept

We will cover more about Azure AD roles when we discuss role-based access control in Chapter 2, “Compliance and Cloud Governance.”

We talked about managing users and groups and assigning roles to them. In an enterprise environment, not only users but devices used by users need to be managed and monitored. Azure AD Join helps you to make sure that the devices used by the users follow the organizational standards. Let’s discuss Azure AD Join.

Self-Service Password Reset – Identity: Azure Active Directory

If you have worked at an IT help desk, you know most of the calls are for user password reset. Self-service password reset (SSPR) allows users to reset their passwords using a set of authentication methods set by the cloud administrators. Self-service password reset is always enabled to administrators to avoid lock-out scenarios. Admins need to use two authentication methods for password reset.

Enabling SSPR

Cloud administrators need to enable SSPR options for users or groups as this option is not enabled by default. To enable this feature, you need to have the Global Administrator role in the tenant.

SSPR can be enabled from Azure Portal ➢ Azure Active Directory ➢ Password Reset. SSPR provides three options (refer Figure 1.9).

  • None: SSPR is not enabled.
  • Selected: SSPR is enabled for selected groups.
  • All: SSPR is enabled for all users in the tenant.

Once SSPR is enabled, users need to register for SSPR. Azure will automatically redirect users to the registration page on first sign-in after SSPR is enabled. Users can always navigate to https://aka.ms/ssprsetup to set up their authentication methods or to change them in the future. For example, you might have registered with one phone number when you enrolled for SSPR, but you changed your phone number. In this case, you can change it by going to the SSPR setup page.

FIGURE 1.9 Enabling SSPR

Registered users can always reset the password from the sign-in page by clicking “Can’t access your account?” as shown in the Figure 1.10.

It is not necessary that you navigate to Azure Portal to click “Can’t access your account?”; you can navigate to any sign-in page that uses Azure AD login like Office 365, Dynamic 365, SharePoint, etc.

Users can also navigate to the reset page directly by going to https://aka.ms/sspr. This is an alias for the following:

https://passwordreset.microsoftonline.com

Now that you are familiar with SSPR setup, let’s see what authentication methods are available for the users and how administrators can control these methods.

Authentication Methods

The administrator can choose the number of authentication methods required to reset the password and the number of methods available for users.

FIGURE 1.10 Initiating password reset

For a successful reset operation, you require at least one authentication method. Nevertheless, it is always better to have a secondary method. For example, if you set up SSPR with an email method, and if the user has no email access, then the user will not be able to reset the password. Here, it is better to have a second option like a mobile phone so that the user can receive the code as a text message and complete the authentication.

Methods available include the following:

  • Email notification
  • Text message to mobile phone
  • Text message to office phone
  • Mobile app notification
  • Mobile app code
  • Security questions

In the case of security questions, the administrator can decide how many questions need to be registered and how many of them need to be answered to reset the password. Nonetheless, security questions are considered less secure as the answers to these questions can be guessed if the intruder or hacker knows the user personally. Attackers can also collect answers for these questions via social engineering.

Authentication methods can be configured from Azure Portal ➢ Azure Active Directory ➢ Password Reset ➢ Authentication Methods (refer to Figure 1.11).

FIGURE 1.11 Configuring SSPR authentication methods

So far, we concentrated on a single-tenant environment; in real-world scenarios there will be different tenants, and admins are responsible for the management of these tenants. Let’s see why we need multiple directories and what benefits it provides.

Managing Multiple Directories – Identity: Azure Active Directory

Each tenant represents an organization, and it is a fully independent resource. Every tenant that you create is logically separated from other tenants that you manage in a multitenant environment. Even if you are the common administrator for all these tenants, there will not be any parent-child relationship between these tenants or directories. Resource independence, administrative independence, and synchronization independence are there between the tenants.

Resource independence is when you create or delete a resource in one tenant; this action will have no impact on any other resource in another tenant. However, there is a small exception that we discussed in the case of cloud identities from external AD. By default, Azure AD doesn’t delete Guest users when they are deleted from their home tenant; however, we can set this up manually.

Administrative independence is when a non-admin user (say the user’s name is John) of tenant A creates a new tenant, say tenant B.

  • John will be the Global Administrator of the tenant B as he created the new tenant. The user will be added as a user from external AD. Here it says external AD, because John is not from tenant B but from tenant A.
  • Administrators of tenant A have no control over tenant B. If the users of tenant A need to access or manage tenant B, then John must invite these users to tenant B and give the necessary role. One thing to note here is that if the admins of tenant A takeover John’s account, they can access tenant B.
  • Adding or removing an admin role in one tenant will not affect the role of the user in the other tenant. Here we’re not removing the user; we are adding or removing the Azure AD roles, which will have no impact on the other tenant, and all roles the user has in the other tenant will be retained.

When it comes to synchronization independence, you can set up independent synchronization on each Azure AD.

With that, we have covered all the topics that are within the scope of the exam.

Summary

In this chapter, we talked about the identity and access management solution in Azure: Azure Active Directory. We started the chapter looking at the benefits of Azure AD, and then we examined how Azure AD is different from the traditional Windows Server Active Directory deployment.

As we progressed, we spoke about Azure AD licensing and how administrators can set up custom domains. After that, we learned about user accounts and group accounts. This is a major element of this chapter; understanding user and group management is crucial for cloud administrators. If you are not confident with identity and access management, there can be a chance of security flaws. Security issues are not something welcomed in an organization as they can cause damage to the reputation of the organization, especially when you are dealing with customer data. Along with the impact on the reputation, this can also lead to revenue loss. As an administrator, you should excel in the identity and access management field.

Then we spoke about Azure AD roles and how administrators should put emphasis on the principle of least privilege. Several other key ideas were reviewed including AD Join and SSPR. You learned about the advantages of incorporating these features in your environment.

Toward the end of the chapter, we covered multitenant environments and the independence they provide in terms of administration, resources, and synchronization.

Like with security, implementing governance and compliance is crucial in setting up the environment. In the next chapter, we will cover governance and compliance.

Azure Regions – Compliance and Cloud Governance

Microsoft Azure comprises datacenters that are located across the globe. At the time of authoring this book, Azure has more than 60 regions, and there are more in the pipeline. This global presence makes Azure the cloud provider with the highest number of regions. Also, this omnipresence gives customers the ability to choose the regions that are right for them. If you are wondering what an Azure region is, a region is a geographical area on the planet comprising at least one datacenter, but usually multiple. The datacenters are isolated from each other in close proximity and connected to each other via low-latency networks, enabling faster and seamless communication.

East US, Brazil South, UK South, India West, and Australia Central are some examples of Azure regions. Figure 2.1 shows the list of public regions available for Azure at the time of authoring this book.

FIGURE 2.1 Azure regions

Let’s understand some key points about regions.

Facts

The following are some of the facts related to regions:

  • Regions offer flexibility for customers to deploy resources to regions that are close to their customers.
  • Regions ensure data residency for customers.
  • Regions offer compliance and resiliency options.
  • When you deploy a resource in Azure, in most cases you will be asked to choose a region.
  • Certain services are region specific, and the availability is limited to some regions when they are launched. Gradually, Microsoft will expand the service to other regions.
  • Services like Azure AD, Azure Traffic Manager, and Azure DNS do not require a region. The region for these resources will be shown as Global in the Azure portal.
  • Each Azure region is paired with another region within the same geography to form regional pairs.

Understanding these facts will help you plan your resource deployment, choose a region, and understand why you are not able to find a specific service in a region. Let’s shift our focus to regional pairs, which is an important concept in Azure.

Azure Accounts and Subscriptions – Compliance and Cloud Governance

We covered Azure AD concepts in Chapter 1, “Identity: Azure Active Directory,” where we defined an Azure subscription as a logical unit for setting up a resource boundary, environment boundary, and billing boundary. Every subscription will have an account that is attached to it. This account can be a work or school account or an account that Azure AD trusts. If you don’t have a work or school account, you can use a Microsoft account to use Azure. The reason behind this is that Azure AD trusts Microsoft accounts. Let’s learn more about Azure accounts and subscriptions.

Azure Accounts

Subscriptions will always be mapped to an account. Any identity that is part of Azure AD or a directory trusted by Azure AD is referred to as an Azure account. It could be a work or school account that is created in Azure; you already saw in Chapter 1 how users can be added to Azure AD. Also, it could be a Microsoft account that is trusted by Azure. If you use your personal account, then you will be creating a Microsoft account and using that as the Azure account.

When you sign up for an Azure account using your work or school account, all subscriptions will be created in the Azure AD that your account is part of. If you are using a personal account, then Azure will automatically create an Azure AD tenant during the account creation process.

Azure Subscriptions

We already discussed the boundaries of Azure subscription sets in terms of resources, environment, and billing. In Azure, billing is done per subscription, and this is charged based on the type of subscription you have. We will cover some of the common types of subscriptions that you will be using for personal, development, and production workloads.

The user who created the Azure account is called the Account Administrator, and a user can have multiple subscriptions inside an account. Reasons for having multiple subscriptions may include environment isolation, project isolation, etc. In Figure 2.3, you can see that the Azure account has multiple subscriptions; these subscriptions are created to separate the workloads in these environments.

FIGURE 2.3 Types of Azure subscriptions

By default, only the account administrator will have access to the newly created subscription. If you would like to grant access to others, then you can use the classic administrator role or role-based access control (RBAC). As we are not using classic resources anymore, Microsoft recommends that you use RBAC for granting access to users and external partners to your Azure resources.

There are multiple channels from which you can get an Azure subscription. Now, we will look at these channels and how each one of these is different.

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