The AZ-104 Microsoft Azure Administrator certification validates skills in managing Azure identities and governance. This lab covers the identity and access management objectives, representing 20-25% of the exam. Master these skills for both the certification and real-world Azure administration.
Entra ID, RBAC, Subscriptions, Policy
Storage accounts, blob, files
VMs, containers, App Service
VNets, NSGs, load balancers
Azure Monitor, backup, recovery
Configure Entra ID objects for Azure resource access.
| Feature | On-Premises AD | Entra ID |
|---|---|---|
| Protocol | LDAP, Kerberos | SAML, OAuth 2.0, OIDC |
| Structure | OUs, Forests, Domains | Flat structure, no OUs |
| Query | LDAP queries | REST API (Graph) |
| Group Policy | GPOs | Intune, Conditional Access |
| Trusts | Forest/domain trusts | B2B collaboration |
| Federation | AD FS | Built-in (Entra ID) |
Know that Entra ID does NOT support LDAP natively, does NOT have OUs, and uses different protocols than on-premises AD. Questions often test these differences.
Dynamic groups require Entra ID P1 or P2 license. Know the rule syntax and common operators: -eq, -ne, -contains, -notContains, -startsWith, -in, -notIn, -match.
Set up self-service password reset and MFA settings.
SSPR requires Entra ID P1 for selected groups, or P2 for all users. Password writeback requires Entra Connect configured with the feature enabled. Know the authentication method options.
Administrative Units provide OU-like delegation in Entra ID. They require P1/P2 license. Use them to delegate User Administrator or other roles to a scoped set of users/groups.
Configure management groups and subscriptions for governance.
Identity boundary - one per organization
Organize subscriptions - apply policies at scale
Billing boundary - contains resource groups
Logical container - lifecycle management
VMs, storage, databases, etc.
When moving a subscription to a different Entra ID directory, ALL RBAC role assignments are deleted. The resources remain, but you lose access until new RBAC is configured. This is a common exam question!
Implement least-privilege access to Azure resources.
| Component | Description | Example |
|---|---|---|
| Security Principal | WHO needs access | User, Group, Service Principal, Managed Identity |
| Role Definition | WHAT they can do | Owner, Contributor, Reader, Custom roles |
| Scope | WHERE they can do it | Management Group, Subscription, Resource Group, Resource |
| Role Assignment | Combines all three | User X has Contributor role on RG-Production |
Know the differences: Owner vs Contributor (RBAC management), Reader permissions (cannot see keys/secrets), and that Contributor CANNOT assign roles to others. Also know that role assignments can take up to 5 minutes to propagate.
| Aspect | Azure RBAC | Entra ID Roles |
|---|---|---|
| Scope | Azure resources (MG, Sub, RG, Resource) | Entra ID directory (tenant-wide) |
| Purpose | Manage Azure resources | Manage Entra ID objects |
| Examples | Owner, Contributor, VM Contributor | Global Admin, User Admin, Groups Admin |
| Assignment | Access control (IAM) blade | Entra ID → Roles and administrators |
| Custom Roles | Yes (JSON definition) | Yes (Entra ID P1/P2) |
| Inheritance | Down hierarchy (MG→Sub→RG→Resource) | Tenant-wide (no inheritance) |
Build custom roles when built-in roles don't meet requirements.
Custom roles have limits: 5000 custom roles per tenant. AssignableScopes can be management groups, subscriptions, or resource groups - NOT individual resources. You must delete all role assignments before you can delete a custom role.
Enforce organizational standards and compliance at scale.
| Component | Description |
|---|---|
| Policy Definition | The rule - what to evaluate and what effect |
| Initiative (Policy Set) | Group of policy definitions |
| Assignment | Apply policy/initiative to a scope |
| Exemption | Exclude specific resources from policy |
| Compliance | Evaluation results (compliant/non-compliant) |
Know the difference between Policy (single rule) and Initiative (group of policies). Initiatives are better for compliance frameworks like CIS, NIST, etc. Policy effects evaluation order: Disabled → Deny → Append/Modify → Audit → DeployIfNotExists.
Implement resource locks and tagging strategies.
Tags do NOT inherit automatically. Use Azure Policy with "Inherit tag from resource group" to copy tags to child resources. The Modify effect requires a managed identity for remediation tasks.
Deploy consistent environments with governance built-in.
Azure Blueprints is being deprecated. Microsoft recommends using Template Specs and Deployment Stacks for new implementations. However, Blueprints may still appear on the AZ-104 exam.
Q1: A user has Contributor role at the subscription level and Reader at a resource group. What is their effective access to resources in that RG?
A: Contributor (roles are additive, higher permission wins)
Q2: You need to prevent anyone from deleting a production VM but still allow modifications. Which lock type?
A: Delete lock (CanNotDelete) - prevents deletion but allows modifications
Q3: You move a subscription to a different Entra ID tenant. What happens to RBAC?
A: All role assignments are permanently deleted. Resources remain but need new RBAC.
Q4: Which policy effect would you use to automatically deploy diagnostic settings to new storage accounts?
A: DeployIfNotExists (DINE) - deploys related resources if they don't exist
Q5: You want users in the Sales department to automatically be added to a security group. What feature do you use?
A: Dynamic group membership with rule: (user.department -eq "Sales"). Requires Entra ID P1/P2.