Understanding Tenants in Azure Entra ID:

In Azure Entara ID, a tenant represents an organization or a distinct entity that subscribes to Microsoft cloud services. Each Azure Entra ID tenant is associated with a unique domain name (e.g., yourorganization.onmicrosoft.com) and serves as an isolated instance of Azure Entra ID services. Within a tenant, administrators can define users, groups, applications, and access policies tailored to the organization’s needs. It gets created when you sign-up for cloud service subscription. Tenant provides a single place to manager users, groups and their permissions for the applications published in the Azure AD

Significance of Tenants:

a. Resource Isolation: Tenants in Azure Entra ID provide logical isolation, ensuring that resources and data are segregated between different organizations. This isolation enhances security and privacy, preventing unauthorized access to sensitive information.

b. Customization and Control: Administrators have granular control over tenant settings, allowing them to configure authentication methods, access policies, and security measures according to organizational requirements.

c. Scalability: Azure Entra ID supports multi-tenant architectures, enabling organizations to scale their infrastructure and accommodate diverse user bases efficiently.

d. Collaboration: Tenants facilitate collaboration between organizations by enabling secure access to shared resources, applications, and services.

Type of Tenants

Microsoft Entra ID:

User this if you need

• Manage access and provisioning to thousands of pre-integrated SaaS applications.
• Use this directory with Office 365, Azure and other Microsoft apps and services.
• Scale up to millions of internal and external users.
• Easy to configure Conditional Access policies to secure access to applications.
• Use identity governance capabilities of Microsoft Entra ID.
• Publish multitenant applications. 

Azure AD B2C

Choose Azure AD B2C if you need to:

• Provide highly customizable sign-in and other identity management experiences for your external facing applications.
• Scale up to hundreds of millions of users.

Note: Azure AD B2C cannot secure access to Office 365, Azure subscriptions or other Microsoft services.

Tenants play a pivotal role in Azure Entra ID, serving as the foundation for identity management, access control, and resource isolation within the Azure ecosystem. By understanding the significance of tenants and adopting best practices for tenant management, organizations can leverage Azure Entra ID effectively to enhance security, streamline operations, and drive digital transformation initiatives.