When Should a New Entra ID Tenant Be Created? (2024)

This document is intended for IT professionals who are leveraging Microsoft cloud-based technologies. It addresses the question: when should a new Entra ID tenant be created?

Orientation and Terminology

Entra ID provides a variety of capabilities that include authentication & credential management, collaboration & application management, device management, information security, and enable cloud-based solutions. If you are familiar with Active Directory, Entra ID is the cloud-based, infrastructure-as-a-service (IaaS) version, providing many of the same kinds of capabilities, but with all the benefits of a cloud-based solution.

If you make use of Azure, you will be familiar with the term subscription. It’s the Azure customer “account” which ties together the various Azure services you are using. Here at the UW, you should get one via the Azure Subscription service as it provides contractual protections, and manages the Microsoft billing to UW budget process for you. The primary purpose of a subscription is to provide a common billing paradigm for use of Azure services. A subscription might have one or more tenants, directories, and domains associated with it.

A tenant is the organization that owns and manages a specific instance of Microsoft cloud services. It’s most often used in a inexact manner to refer to the set of Entra ID and Office 365 services for an organization, e.g. “we’ve configured our tenant in this way.” A given organization might have many tenants (the UW does), and when this is the case, the name of core domain of the tenant is usually used to remove any ambiguity. The name of the core domain comes in the form *.onmicrosoft.com, where the * varies. A tenant may have many subscriptions, exactly one directory, and one or more domains associated with it. There are multiple vendors which use the term “tenant” in slightly different ways, and there are even several Microsoft products using the term tenant. For the purposes of this guidance, we only mean an Entra ID or Office 365 tenant. To be explicit: Microsoft Windows Virtual Desktop tenants and Azure AD B2C tenants are not covered or restricted by this guidance.

A directory is the Entra ID service. Each directory has one or more domains. A directory can have many subscriptions associated with it, but only one tenant.

A domain (or accepted domain) is a DNS zone for which a tenant has proven ownership (by creating an arbitrarily named DNS record as requested by Microsoft). It represents the possible domain suffixes (or namespace) which directory objects can use. Each tenant has a core domain (onmicrosoft.com) and a default domain (which by default is the core domain, but which can be changed). Neither of these are necessarily the primary domain used by the tenant.

The primary Entra ID tenant used at the UW is uwnetid.onmicrosoft.com. It has a default domain of cloud.washington.edu. The primary domain used by this tenant is uw.edu. There are several other domains associated with this tenant like washington.edu and u.washington.edu.

Discussion

From an institutional point of view, using a single Entra ID tenant has the following benefits:

  • Single Microsoft cloud identity forUW users. Less confusion with a single credential. The user principal name (UPN) of that credential matches the email address that most UW users use, i.e. uwnetid@uw.edu.
  • Better contractual coverage for certain Microsoft cloud services. We have licensing, pricing, and a data security agreement including FERPA and BAA coverage for specific Microsoft cloud services available in the primary Azure AD tenant, provided the services are ordered under the UW contract and coordinated through UW-IT.
  • Reduced cost of integration and management. There’s a distinct cost of managing identities, and integrating them with the well-established UW infrastructure, as well as maintaining the expertise needed to keep up with the pace of change of Azure AD.

However, there are a number of specific scenarios where those benefits are not significant and for which a new Azure AD tenant may be recommended. The scenarios where this may be the caseinclude:

  • fixed term use for testing or application development
  • there is a plan to divest, commercialize, or separate from the UW
  • if you have a need for a capability which has no general offering or where there is no integration possible currently. Note that this scenario is a little tricky because it really depends on the nature of specificMicrosoft cloud service and UW-IT plans to provide future offerings or assist with integrations.So we’d strongly recommend that you first ask via help@uw.edu
  • by design, Azure AD B2C requires a separate tenant
  • scenarios where the brand identity can not be “uw.edu”
  • there is a compelling business need for a tenant-wide setting which differs from the UW’s primary tenant

There are also implications to having more than one Entra ID tenant. If you had a separate Entra ID tenant, among the implications are:

  • You will not have UW NetID or Groups service integration and will need to provide your own identity and access management capabilities and processes. Note: there are ways via Microsoft’s B2B capability (external users) to share identities across Entra ID tenants, but this will require additional investment to manage and may not work with whatever capability you need
  • You will need to secure contractual coverage for your tenant and any Microsoft cloud services in that tenant.
  • You may also have to pay more to license the Microsoft Online products integrated with that Entra ID tenant as they will not be covered by the UW Enterprise agreement
  • You will need to provide all the management of this Entra ID tenant, supplying personnel with enough time to gain the expertise to navigate this constantly changing technology

Among the most significant of those implications are contractual data protections as well as increased licensing costs for the UW, but all of them are worth consideration.

Guidance Summary

For most scenarios, you must not create a new Entra ID tenant, but instead leverage the primary UW Entra ID tenant. If you do have a scenario which you think falls into the scenarios noted above, you must discuss it with UW-IT first.

UW-IT will help you analyze whether there is a way to use the primary UW Entra ID tenant. If not, we’ll explore whether UW-IT should manage your Entra ID tenant or if you should manage the tenant. We can also explore whether it is possible to add your Entra ID tenant to the UW Enterprise agreement.

Microsoft Windows Virtual Desktop tenants and Azure AD B2C tenants are not covered or restricted by this guidance.

Send an email to help@uw.edu with “New Entra ID tenant” as the subject to start a conversation.

NOTE: Upon direction from the UW Provost and UW CIO, UW-IT will discover any Entra ID tenants provisioned under the uw.edu or washington.edu DNS domain and may take control of that tenant to protect the interests of the University of Washington.

Further Reading

When Should a New Entra ID Tenant Be Created? (2024)

FAQs

How do I create a Microsoft Entra tenant? ›

To create a new tenant

Navigate to Identity > Overview > Manage tenants. Select Create. On the Basics tab, select the type of tenant you want to create, either Microsoft Entra ID or Microsoft Entra ID (B2C). Select Next: Configuration to move to the Configuration tab.

What is Microsoft Entra tenant ID? ›

A Microsoft Entra tenant provides identity and access management (IAM) capabilities to applications and resources used by your organization. An identity is a directory object that can be authenticated and authorized for access to a resource.

How do I get my tenant ID? ›

Find tenant ID through the Microsoft Entra admin center

Browse to Identity > Overview > Properties. Scroll down to the Tenant ID section and you can find your tenant ID in the box.

What is the naming convention of the entra id? ›

The general structure of the naming convention is Prefix[GroupName]Suffix . While you can define multiple prefixes and suffixes, you can have only one instance of the [GroupName] in the setting.

How do I create a new tenant? ›

You'll provide the following information to create your new tenant:
  1. Tenant type - Choose between a Microsoft Entra tenant and an Azure AD B2C tenant.
  2. Organization name.
  3. Initial domain - Initial domain <domainname>. onmicrosoft.com can't be edited or deleted. You can add a customized domain name later.
  4. Country or region.
Jan 11, 2024

Can only paid customers create a Microsoft Entra workforce tenant? ›

A recent hotfix now restricts tenant creation by requiring paid P1 or greater licenses. If the Entra ID P2 license is a trial license, that is not enough. Customers attempting to create tenants with trial P1+ licenses will also fail in creating tenants. I hope this helps.

Is Entra replacing Azure? ›

Microsoft renamed Azure Active Directory (Azure AD) to Microsoft Entra ID to communicate the multicloud, multiplatform functionality of the products, alleviate confusion with Windows Server Active Directory, and unify the Microsoft Entra product family.

What is the difference between Active Directory and Entra ID? ›

Both Microsoft Entra ID and Active Directory offer credential management — but in different ways. Active Directory works with your on-prem domain controller to verify passwords or certificates. Microsoft Entra ID, on the other hand, offers a few more security measures for credential management.

Is Entra ID the same as Azure AD? ›

Congratulations, your AD evolved into Entra! Pokémon jokes aside, here's what it means for your identity and access management (and how you're better off).

What is tenant ID used for? ›

Tenant Id - this is the unique identifier of the Azure Active Directory instance. Client Id - this identifier will be assigned when Seq is set up as an application in the directory instance (the new Azure portal calls this Application Id) Client Key - this is the secret key Seq will use when communicating with AAD.

What does a tenant ID look like? ›

Every Microsoft 365 tenant is identified by a GUID, a globally unique identifier, which looks something like abf988bf-86f1-41af-91ab-2d7cd011db46. Applications use the tenant identifier to know which organization data belongs to.

Is tenant ID same as subscription ID? ›

Every Azure resource is associated with a subscription. Each subscription has an ID associated with it, as does the tenant to which a subscription belongs. As you perform different tasks, you may need the ID for a subscription or tenant.

How do you set up a naming convention? ›

How to develop naming conventions?
  1. Keep file names short but meaningful.
  2. Include any unique identifiers, e.g. case number, project title.
  3. Be consistent.
  4. Indicate version number where appropriate.
  5. Ensure the purpose of the document is quickly and easily identifiable.

What are three naming conventions? ›

Variable Naming Conventions
  • Snakecase: Words are delimited by an underscore.
  • Pascalcase: Words are delimited by capital letters.
  • Camelcase: Words are delimited by capital letters, except the initial word.

What is the market share of Microsoft Entra ID? ›

What is Microsoft Entra ID market share in the identity-and-access-management? Microsoft Entra ID has market share of 0.30% in identity-and-access-management market. Microsoft Entra ID competes with 174 competitor tools in identity-and-access-management category.

How do I create a tenant in Office 365? ›

Create an Office 365 trial tenant
  1. Set up your account. Enter the email address that you want to configure with Office 365. Click Next. ...
  2. Tell us about yourself. Fill in the information. Click Next. ...
  3. Create your business identity. Fill in the username and domain name. ...
  4. You're all set. That's it.
Aug 7, 2023

How do I add a tenant to my Microsoft 365 account? ›

Expand Settings and select Org settings. On the Organization profile tab, select Multitenant collaboration. Select Add new tenants. Enter the tenant IDs of the tenants you want to add, and then select Add tenant.

How do I create a Microsoft 365 trial tenant? ›

Creating a Office 365 trial subscription

Before you can create an Office 365 trial tenant, you first need a trial subscription. Visit office.com and click on 'Buy Now' to see an overview of the license models. If you need a Teams environment, select at least the Business Premium and Teams included.

How do I set up a new M365 tenant? ›

Microsoft 365 tenant configuration
  1. Log in to M365 Manager Plus as an administrator. ...
  2. Choose the Tenant Settings option found in the top-right corner.
  3. If you are configuring your first tenant, click Configure using Microsoft 365 Login. ...
  4. Click Proceed in the pop-up that appears.

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