Microsoft Entra Cloud Sync - Simply Explained

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Microsoft Entra Cloud Sync provides organizations with a cloud-managed way to synchronize identities from on-premises Active Directory into Microsoft Entra ID. But how is it different from Microsoft Entra Connect, why would an organization choose it, and what has changed in 2026? In this episode of Microsoft Knowledge Nuggets on M365 FM, we break down Entra Cloud Sync from the basic identity problem through architecture, high availability, scoping, security, hybrid environments, and the decision between Cloud Sync and Entra Connect.WHY IDENTITY SYNCHRONIZATION STILL MATTERSMany organizations still maintain employee identities inside Active Directory while their employees increasingly work in Microsoft 365. A new employee might be created in the local directory but immediately need Microsoft Teams, Exchange Online, SharePoint, OneDrive, and other cloud applications. Without synchronization, IT effectively has two identity environments to maintain.Identity synchronization connects those worlds. Changes to an employee's identity can begin in Active Directory and then flow into Microsoft Entra ID instead of requiring administrators to maintain two independent accounts. This becomes especially important when employees join the company, change departments, receive different permissions, change passwords, or leave the organization.THE TRADITIONAL ENTRA CONNECT MODELMicrosoft Entra Connect has traditionally handled this connection by running a synchronization engine inside the organization's network. It reads Active Directory, processes synchronization rules locally, maintains its own local components, and sends approved identity changes to Microsoft Entra ID.That architecture provides considerable flexibility, particularly for organizations with sophisticated synchronization requirements. But flexibility also creates operational responsibility. The synchronization server must be maintained, patched, monitored, understood, and incorporated into disaster-recovery planning.If the synchronization infrastructure becomes unav