In Microsoft Azure, identities and governance form the foundation of how resources are accessed, controlled, and managed. Before you can run virtual machines or store data, Azure needs to know who you are and what you’re allowed to do.
Why this matters
Almost every AZ-104 exam scenario involves permissions, roles, or policies. If you understand identities and governance, you’ll unlock at least 20–25% of the exam content right away.
Core Concepts
- Identity: Proves who you are. In Azure, this is handled by Entra ID (formerly Azure Active Directory).
- Authentication: The process of logging in and proving your identity (password, MFA, biometric).
- Authorization: Defines what you can do after login. This is managed using RBAC (Role-Based Access Control) and policies.
- Governance: The set of tools and rules that keep your Azure environment under control (policies, blueprints, compliance rules).
Confusion Buster 🚨
Authentication ≠ Authorization
– Authentication = “Are you really who you say you are?”
– Authorization = “Now that I know who you are, what are you allowed to do?”
Think of it like entering a building:
– Showing your ID at the door = Authentication.
– Which rooms your badge lets you into = Authorization.
Simple Example
Sarah logs in to the Azure portal using her company account. Entra ID checks her password (authentication). She can only see the Storage Accounts because she’s assigned the Storage Contributor role (authorization).
Exam Tip
Microsoft loves to mix up identity terms. If the question says “which service validates logins?” the answer is Entra ID. If it says “which service decides permissions on resources?” the answer is RBAC.
What to Expect in the Exam
- Basic definition questions: “What does authentication mean vs authorization?”
- Scenario-based: “A user can log in but cannot create a VM. Why?” → Because login = authentication, but they don’t have the correct RBAC role.
- Trick question: Expect Microsoft to mention Azure Subscriptions — remember, subscriptions control billing/resources, not identities.