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A software company is developing a multi-tenant SaaS application on Azure. Each customer (tenant) has its own set of users and requires isolation of identity data. The application needs to authenticate users from various organizations, potentially using their existing corporate identities (e.g., Azure AD, Google, Facebook). Which Azure AD feature is best suited for this multi-tenant identity requirement?
- AAzure AD Domain Services (AAD DS)
- BAzure Active Directory (multi-tenant app registration)
- CAzure AD B2B collaboration
- DAzure AD B2C (Business to Consumer)
Show answer & explanationAnswer & explanation
Correct answer: B. Azure Active Directory (multi-tenant app registration)
For a multi-tenant SaaS application that needs to authenticate users from various organizations using their corporate identities (e.g., their own Azure AD), registering the application as multi-tenant in Azure Active Directory is the appropriate solution. This allows users from any Azure AD tenant to sign in without requiring B2B invitations or B2C user flows.
Why the other options are wrong
- A. AAD DS provides managed domain services for legacy applications and is not designed for multi-tenant SaaS identity federation.
- C. Azure AD B2B is for inviting external users into your tenant, not for a multi-tenant SaaS where each customer manages their own users.
- D. Azure AD B2C is primarily for consumer-facing applications where your organization manages the identities, not for integrating with other corporate directories.
Azure AD Multi-tenant Apps
An Azure AD multi-tenant application allows users from any Azure AD tenant to sign in to the application after granting consent, enabling SaaS solutions to serve multiple organizations.
- Application is registered in one Azure AD tenant.
- Users from other tenants can sign in using their own Azure AD accounts.
- Requires user or admin consent for first-time use in a new tenant.
Memory trick: Multi-tenant app: One app, many corporate doors.