Hybrid cloud environments are popular today and are increasingly becoming the norm for enterprises. The hybrid environment that spans on-premises infrastructure and the cloud requires a comprehensive, adaptive security posture. As organisations move their data workloads to the cloud, protecting legacy on-premises in these hybrid environments becomes complex. Microsoft Defender for Identity is a key player in this security ecosystem, which helps protect both on-premises and cloud-based identity infrastructure. Let us study this in detail.
What is Microsoft Defender for Identity?
Microsoft Defender for Identity is a cloud-based security solution designed to protect hybrid enterprise environments from advanced, identity-based cyberattacks. It was formerly known as Azure Advanced Threat Protection (Azure ATP). Defender for Identity integrates seamlessly with Microsoft Defender XDR and monitors on-premises Active Directory (AD) along with cloud identities, helping organisations detect, investigate, and respond to identity threats quickly and effectively.
Microsoft Defender for Identity offers real-time threat detection and detailed visibility into user behaviour, detects suspicious activities, and security vulnerabilities across both on-premises infrastructure and cloud environments. It leverages ML, behavioural analytics, and the power of the Microsoft Intelligent Security Graph, providing proactive security posture management and threat response.
Microsoft Defender Key Components:
Microsoft Defender for Identity operates through several key components, such as:
- Sensors that are installed directly on domain controllers or Active Directory Federation Services (AD FS) servers capture network traffic and Windows events, collecting data required for threat detection.
- A cloud-hosted service that ingests sensor data, enriches it with intelligence, applies machine learning algorithms to detect suspicious activities, and generates alerts.
- Portal & Dashboard that provides security teams with centralised management, alert investigation capabilities, risk insights, and forensic data for incident response.
The solution continuously monitors user activities such as authentication traffic, group membership changes, and directory services interactions, and establishes behavioural baselines against which it detects anomalies indicative of cyber threats.
Features of Microsoft Defender for Identity:
| Feature | Description |
| Comprehensive Identity Threat Detection | Detects a range of identity-based threats: Reconnaissance – Attacker info gathering about users, groups, devices, and domain controllers. Credential Compromise – Brute force, password spray, unusual logins. Lateral Movement – Pass-the-Hash, Pass-the-Ticket, Overpass-the-Hash, Golden Ticket attacks. Domain Dominance – DC Shadow, malicious replication, Golden Ticket attacks. |
| Real-Time Alerts and Incident Investigation | Provides preconfigured, prioritised alerts powered by Microsoft threat intelligence. Alerts include rich context to enable swift triage and response by security teams. |
| Identity Security Posture Insights | Offers detailed reports and security assessments. Identifies misconfigurations, risky user behaviour, and lateral movement paths to reduce attack surfaces. |
| Seamless Integration with Microsoft Defender XDR Ecosystem | Correlates identity signals with endpoint, email, and cloud activity. Enables coordinated incident visibility and response across security layers. |
| Automatic and Intelligent Response | Triggers automated containment, like account restrictions or session terminations, when compromises are detected. Mitigates damage promptly without manual intervention. |
| Hybrid Environment Support | Protects identities in hybrid environments. Monitors on-prem infrastructure. |
Benefits of Microsoft Defender for Identity
- Early breach detection by advanced persistent threats early in the attack lifecycle.
- Reduces attacks by blocking lateral movement. Defender for Identity limits attackers’ ability to exploit valid credentials.
- Detailed audit trails and activity timelines facilitate investigations and support regulatory compliance.
- Centralised dashboards and integrated threat intelligence reduce complexity and improve security operations efficiency.
- As it is a part of the Microsoft 365 Defender suite, it enables organisations to leverage enterprise-grade protections without managing multiple disparate tools.
How Does Microsoft Defender for Identity Work?
- It collects data deployed on Domain Controllers to monitor network traffic and capture event logs.
- Leverages Machine learning algorithms to establish standard behavioural patterns for users, devices, and entities.
- Detects suspicious activities like unusual logins, privilege escalations, or protocol anomalies that trigger alerts.
- Incidents are flagged with context-rich details, including attack stages and involved accounts.
- Automated playbooks isolate compromised accounts and trigger workflows for security teams.
Kloudify for Cloud Security Solutions:
Microsoft Defender for Identity provides essential protection for today’s complex hybrid identity environments with its advanced detection capabilities and behavioural analytics. Its integration into the broader Microsoft security ecosystem makes it a critical tool for defending against sophisticated identity-centric cyber threats. Security professionals are compelled to continually evolve their identity protection strategies, leveraging insights and alerts to identify vulnerabilities, mitigate risks, and effectively safeguard hybrid environments.
Kloudify is a trusted Microsoft Solutions partner specialising in Microsoft 365, Azure, and advanced security solutions like Defender, Intune, and Purview. We deliver end-to-end services from migration and deployment to ongoing management and compliance. Our team combines deep technical expertise with a people-first approach, ensuring small and mid-sized businesses get enterprise-grade technology that’s simple, cost-effective, and future-ready. Kloudify helps businesses unlock the full power of Microsoft Defender by delivering expert deployment, tailored security policies, and ongoing monitoring. Let us take this discussion further. Talk to us!
