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Unlocking Azure Files with Entra-Only Identities: A New Era of Security

5 min read Azure BlogMay 19, 2026Reviewed for accuracy
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In today's cloud-first world, managing identities and access securely is paramount. Azure Files introduces Entra-Only identities, a feature that enables organizations to grant secure, identity-based access to SMB file shares using cloud-native identities. This advancement eliminates the need for traditional Active Directory, simplifying the authentication process and enhancing security.

When you access a file share, the client requests a Kerberos ticket from Entra ID. This ticket contains cloud-based security identifiers (SIDs) and is presented during the SMB session setup. Azure Files validates the ticket, establishing a secure session that allows for identity-based access. Authorization continues to leverage NTFS ACLs, which are now extended to include Entra-Only users and groups, providing granular control over access permissions.

In production, the general availability of Entra-Only identities for Azure Files SMB is a game changer. It streamlines identity management and enhances security for organizations moving to cloud-native architectures. However, always keep in mind that while this feature simplifies access control, it’s essential to understand the implications of transitioning from traditional identity systems. Be prepared for potential adjustments in your access management strategies as you adopt this new approach.

Key takeaways

  • Utilize Entra-Only identities to simplify identity management for Azure Files.
  • Leverage Microsoft Entra ID for direct authentication, eliminating Active Directory dependencies.
  • Request Kerberos tickets from Entra ID for secure SMB session setups.
  • Extend NTFS ACLs to include Entra-Only users and groups for fine-grained access control.

Why it matters

This shift to Entra-Only identities significantly reduces complexity in managing access to file shares, which can lead to fewer security vulnerabilities and streamlined operations in cloud environments.

When NOT to use this

The official docs don't call out specific anti-patterns here. Use your judgment based on your scale and requirements.

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