Microsoft Security, Compliance, and Identity Fundamentals (SC-900)Describe the capabilities of Microsoft EntraMedium

A small startup is rapidly expanding and needs to provide secure access to its cloud applications for a growing number of external contractors and partners. They want to manage these external identities centrally within Microsoft Entra ID, allowing partners to use their own existing corporate or social identities for sign-in. Which Microsoft Entra capability supports this scenario?

  1. AMicrosoft Entra B2B Collaboration
  2. BMicrosoft Entra Application Proxy
  3. CMicrosoft Entra Domain Services
  4. DMicrosoft Entra Connect
Show answer & explanation

Correct answer: A. Microsoft Entra B2B Collaboration

Microsoft Entra B2B Collaboration allows organizations to invite external users (partners, contractors) to access their applications and resources, while enabling those external users to sign in with their own existing identities (Microsoft accounts, social identities, or other Entra ID tenants).

Why the other options are wrong

  • B. Application Proxy provides remote access to on-premises apps, not for managing external identities directly.
  • C. Domain Services provides managed AD for Azure VMs, not for external user collaboration.
  • D. Microsoft Entra Connect synchronizes on-premises AD, not for external user management.

Microsoft Entra B2B Collaboration

A feature of Microsoft Entra External Identities that allows organizations to securely share their applications and resources with external users (partners, contractors, vendors) while letting those users sign in with their own identities.

  • Invites external users to access resources.
  • Supports various identity providers for guests (Microsoft accounts, Google, federated domains).
  • Manages guest user lifecycle and access.
  • Integrates with Conditional Access policies for guest users.

Memory trick: B2B: Business to Business, sharing resources with external partners.

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