How to Replace a Local Domain Controller with Microsoft Entra ID
Question details
An organization is looking to replace an on-premises Local Domain Controller with a cloud-only Microsoft Entra ID domain, expecting the exact same group policies and feature set.

- Product
- Microsoft Entra ID
- Device & OS
- not provided
- Scenario
- Transitioning enterprise IT infrastructure to the cloud without synchronizing traditional Active Directory, while attempting to retain legacy domain control features.
- Observed behavior
- The user aims to configure users, group policies, and traditional features natively in Microsoft Entra ID, unaware that it is not a direct one-to-one replacement for legacy AD.
Before attempting to migrate, audit your current legacy applications and Group Policy Objects (GPOs), as a cloud-only Microsoft Entra ID environment handles device management and policies differently than a traditional Local Domain Controller.
Adopt Microsoft Intune and Cloud-Native Identity Management
Understand that Entra ID does not support legacy GPOs natively, and utilize Microsoft Intune for comprehensive device configuration and policy enforcement.
Microsoft Entra ID (formerly Azure AD) is a modern, cloud-based identity and access management service. It is not designed to be a direct one-to-one replacement for every feature found in an on-premises Active Directory.
Crucially, traditional Group Policy Objects (GPOs) do not exist natively in a cloud-only Entra ID setup. To achieve the same policy controls, organizations must transition to Mobile Device Management (MDM) solutions.
Review your user and group management strategies within the Microsoft Entra admin center, utilizing cloud-native groups rather than trying to replicate legacy Active Directory organizational units (OUs).
Since Entra ID lacks traditional GPOs, subscribe to and configure Microsoft Intune. Use Intune's configuration profiles and compliance policies to enforce security rules on Entra-joined devices.
For complex migrations, post your organization's specific requirements in the Active Directory section of Microsoft Q&A. Ensure you use the 'Microsoft Entra ID' or 'Azure Active Directory' tags to get assistance from dedicated cloud architects.

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Frequently Asked Questions
Does Microsoft Entra ID support Group Policy Objects (GPOs)?
No, Microsoft Entra ID does not support traditional GPOs natively. Organizations must use Mobile Device Management (MDM) solutions, such as Microsoft Intune, to push configuration profiles and compliance policies to cloud-joined devices.
Can I migrate my business to Entra ID without synchronizing a Local Domain Controller?
Yes, you can create a purely cloud-native Microsoft Entra environment where users, identities, and groups are managed directly in the cloud, completely independent of any on-premises Active Directory.
Is Microsoft Entra Domain Services the exact same as Entra ID?
No. Microsoft Entra ID is a cloud identity platform, while Microsoft Entra Domain Services provides managed, legacy domain features like domain join, LDAP, and limited GPOs for applications that cannot modernize to cloud-native authentication protocols.




