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A software development company is building a new multi-tenant SaaS application on Azure. The application needs to authenticate users from various customer Azure AD tenants and provide them access to their specific data. How should the application be configured to allow users from different Azure AD tenants to sign in?

  1. ARegister the application as a single-tenant application in the company's Azure AD.
  2. BUse Azure Active Directory B2C for user authentication.
  3. CImplement custom authentication logic within the application for each tenant.
  4. DConfigure the application registration as multi-tenant in the company's Azure AD.
Show answer & explanation

Correct answer: D. Configure the application registration as multi-tenant in the company's Azure AD.

Configuring the application registration as multi-tenant in the company's Azure AD allows users from any Azure AD tenant to sign in to the application after granting consent, which is ideal for SaaS applications serving multiple organizations.

Why the other options are wrong

  • A. A single-tenant application only allows users from the registering tenant to sign in.
  • B. Azure AD B2C is primarily for consumer-facing applications, not for authenticating users from existing Azure AD organizations.
  • C. Implementing custom authentication logic for each tenant is complex, error-prone, and does not leverage Azure AD's capabilities for organizational users.

Azure AD Multi-tenant Application

An Azure AD multi-tenant application is an application that accepts sign-ins from users in any Azure AD tenant, not just the tenant where the application is registered.

  • Enables SaaS providers to offer their services to customers with their own Azure AD.
  • Requires users or tenant administrators to grant consent for the application to access their tenant's data.
  • Authentication is handled by Azure AD, simplifying development and security.

Memory trick: One app, many homes: multi-tenant opens the doors wide.

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