Why You Should Migrate Away from On-Prem Domain Controllers

As companies push to modernize their IT infrastructure, many are taking a hard look at the components they’ve relied on for decades. One of the more significant changes is moving away from traditional on-premises domain controllers to cloud-native identity platforms like Microsoft Entra ID (formerly Azure AD). This shift not only removes the need for physical servers, but it also changes how identity, access, and security are handled across the company.

Why Go Serverless for Identity Management?

Traditional domain controllers worked well when employees and devices were primarily on-prem. However, as companies are slowly transitioning towards a more remote-first operation, physical domain controllers are starting to show their age. Maintaining domain controllers not only involves a lot of hardware upkeep, backup routines, and patch management, but also requires employees to rely on VPNs just to authenticate with company resources.

Connecting cloud services to an on-prem identity system often requires extra setup and sometimes third-party tools, which can slow things down and make it harder to adapt quickly. Scalability is another concern for on-prem. Since companies can grow or shift drastically in a short time frame, the need for a more flexible and reliable way to manage user access is crucial, which is something domain controllers weren’t designed to do.

Microsoft Entra ID solves these problems. It’s a cloud-based identity platform that works seamlessly with Microsoft 365 and many other apps. It provides secure, easy access for users no matter where they are. Tools like conditional access, multi-factor authentication (MFA), and identity governance are already available in Entra without any additional infrastructure. By moving to Entra ID, companies can remove the need for LAN-bound domain joins and Group Policy Objects (GPO) by replacing them with modern alternatives like Microsoft Intune.

How to Prep for Migration, and What Approach You Should Take

If you’ve decided to transition to Entra ID, here’s a few tips to help you prep and map out the migration. First, before starting any migration, make sure you’ve prepared the following:

  • Inventory all users, groups, and devices
  • Document existing GPOs and policies
  • Identify legacy applications using AD auth
  • Ensure license readiness for Entra ID Premium and Intune (if needed)

Once you’ve gone through all the steps above, you now need to decide which migration strategy is best for your company (hybrid or cloud-first). Here’s a breakdown of both approaches:

  • Hybrid Approach (Recommended for Gradual Transition)
    • Usage of both physical domain controller and Entra ID
    • Use Azure AD Connect to sync on-prem identities with Entra ID
    • Password hash or pass-through authentication bridges the gap
    • Ideal for organizations needing time to modernize legacy applications
  • Cloud-First Approach
    • Create or import users directly into Entra ID
    • Eliminate reliance on domain controllers altogether
    • Devices are joined directly to Entra ID and managed via Intune

Pitfalls to Avoid

When moving to Microsoft Entra ID, a few common issues can slow you down. Make sure all usernames and email addresses are unique to avoid sync problems. Don’t forget to update or replace old service accounts that might stop working after the switch. Some apps may still need a traditional domain, Azure AD Domain Services can help during the transition. And for things like printers and files shares, plan to use modern tools like cloud printing, SharePoint Online, and OneDrive.

A Future Without Servers

The shift from domain controllers to Entra ID is more than a tech upgrade, it’s a strategic leap toward a flexible, secure, and scalable IT environment. By adopting serverless identity, organizations can free themselves from the headaches of hardware constraints and legacy complexity, paving the way for agile operations and zero trust security. Are you ready to decommission your domain controller and move to the cloud?