Cloud-Only Identity Modernization with Microsoft Entra ID & Intune Device Management

Hybrid Active Directory Retirement and Microsoft 365 Cloud Migration for Local Roofing Company

The Challenge: Eliminating Legacy Active Directory Dependencies

This local roofing company had historically operated in a hybrid identity configuration built around Microsoft Entra ID and Azure-hosted Active Directory Domain Services (ADDS). While this architecture initially supported cloud adoption initiatives, the organization had effectively been operating in a cloud-native state for several years, with no authentication activity occurring against the Azure-hosted domain controllers since 2022.

Despite the lack of dependency on Active Directory, the roofing company continued to maintain Azure IaaS domain controllers, Azure AD Connect synchronization, Windows Server licensing, backup infrastructure, patching cycles, monitoring, and operational overhead associated with maintaining a hybrid identity environment.

This outdated architecture created several ongoing business and technical challenges, including:

• Unnecessary Azure infrastructure and licensing costs
• Redundant administration across two identity systems
• Increased cybersecurity exposure from maintaining legacy ADDS infrastructure
• Continued operational complexity tied to hybrid identity management
• Delayed modernization efforts due to lingering Active Directory dependencies
• Governance and audit pressure to simplify and modernize the environment

The roofing company also needed to modernize endpoint management, migrate away from legacy file services, and fully align with Microsoft’s SaaS-first and domain-less operational model.

To accomplish these objectives, the roofing company partnered with Data Networks to execute a comprehensive cloud-only identity modernization initiative centered on Microsoft Entra ID, Intune, and Microsoft 365 services.

The Solution: Cloud-Only Identity Modernization with Microsoft Entra ID + Intune Device Management

Data Networks designed and implemented a strategic cloud-only identity modernization solution that eliminated the roofing company’s remaining legacy Active Directory infrastructure and transitioned the roofing company to a fully cloud-native Microsoft environment.

The engagement began with a detailed discovery and validation phase to inventory Azure-hosted domain controllers, Azure AD Connect synchronization dependencies, device join states, SaaS application integrations, and remaining Active Directory dependencies. Data Networks validated that the roofing company’s Microsoft 365 Business Premium licensing fully supported Intune, Conditional Access, and Multi-Factor Authentication (MFA) requirements for the transition.

As part of the identity modernization initiative, Data Networks disabled Azure AD Connect synchronization and transitioned all 289 users and groups to fully cloud-native Microsoft Entra ID identities. Legacy AD-synced groups were converted to cloud-native Microsoft 365 security groups and dynamic groups, ensuring centralized identity governance through Entra ID as the single authoritative identity platform.

To strengthen the roofing company’s security posture, Data Networks configured and validated modern security controls including:

• Tenant-wide MFA enforcement
• Conditional Access policies
• Compliant-device enforcement
• Legacy authentication blocking
• Intune security baselines aligned with Microsoft and CIS best practices
• Break-glass administrative accounts for emergency access

The project also included comprehensive endpoint modernization services. Data Networks developed and implemented an Intune deployment strategy to replace legacy Group Policy Objects with modern cloud-managed configuration profiles, compliance policies, and security baselines. 198 devices were validated for Microsoft Entra ID Join and centralized Intune management.

To modernize collaboration and file services, Data Networks migrated active file-sharing workloads to Microsoft 365 services including SharePoint Online, OneDrive, and Microsoft Teams. Historical file data was archived into Azure Blob Storage using lifecycle management policies designed for long-term retention and cost optimization.

As part of the infrastructure retirement effort, Data Networks validated that all 17 SaaS applications were authenticating exclusively through modern Entra ID protocols such as SAML and OIDC. Once all dependencies were removed, Data Networks decommissioned the Azure-hosted domain controller virtual machines, removed Azure AD Connect, and validated that no remaining DNS, DHCP, certificate, or authentication dependencies relied on ADDS infrastructure.

The engagement concluded with detailed documentation updates, administrative runbooks, operational readiness reviews, and knowledge transfer sessions covering Microsoft Entra ID, Intune device management, identity governance, and cloud-only administration best practices.

The Outcome: A Secure, Fully Cloud-Native Microsoft Environment

The completed cloud-only identity modernization project delivered a streamlined, secure, and future-ready Microsoft 365 environment that aligns fully with Microsoft’s modern cloud-first architecture strategy.

By eliminating legacy Active Directory infrastructure and Azure IaaS domain controllers, the company significantly reduced operational complexity, administrative overhead, and ongoing infrastructure costs while strengthening its cybersecurity posture through modern identity controls and cloud-native security enforcement.

Microsoft Entra ID now serves as the single source of truth for authentication, authorization, and identity governance across all users, groups, devices, and SaaS applications. Intune provides centralized cloud-based device management and compliance enforcement, eliminating reliance on traditional Group Policy management and legacy domain dependencies.

The migration to SharePoint Online, OneDrive, Teams, and Azure Blob Storage modernized file services while improving collaboration, scalability, retention management, and operational flexibility across the company.

In addition, the company now benefits from reduced attack surface exposure by retiring Active Directory Domain Services and eliminating legacy authentication protocols historically associated with elevated cybersecurity risk.

Ongoing management, monitoring, and support for the environment are now delivered through the company’s existing Data Networks Co-Managed IT Services agreement, ensuring continued operational stability, security optimization, and long-term scalability for the roofing company’s cloud-native Microsoft environment.

Tags: commercial, data center, datacenter