Identity, Credential, and Access Management (ICAM) is a crucial framework for ensuring that the right people have the right access at the right time, without compromising security, usability, or compliance.

Many organizations assume that Microsoft Entra ID (formerly Azure AD) provides a full ICAM solution, but that’s not the case. While Entra ID is a strong Identity and Access Management (IAM) tool, ICAM goes beyond IAM by incorporating credential lifecycle management, physical access integration, continuous risk-based monitoring, and adaptive security controls.

Understanding ICAM Beyond IAM

A comprehensive ICAM implementation encompasses identity management, credential management, and access management. Unlike a basic IAM system, ICAM integrates digital identity with physical security, ensures adaptive risk-based authentication, and enforces policy-based access control dynamically. Entra ID primarily focuses on authentication and authorization but does not extend to the broader capabilities required for a full ICAM deployment.

A comprehensive ICAM framework includes:

✔ Identity Management – Defining and managing users throughout their lifecycle.
✔ Credential Management – Issuing, maintaining, and revoking secure authentication methods.
✔ Access Management – Enforcing permissions, continuous risk assessment, and policy-driven controls.

A true ICAM solution does more than just verify identities. It integrates digital security with physical access systems, applies continuous authentication, and enforces policy-based access control with real-time risk adjustments.

Why Microsoft Entra ID Falls Short

While Entra ID is useful for IAM functions such as single sign-on (SSO), multi-factor authentication (MFA), and conditional access, it lacks the comprehensive features required for a full ICAM solution. Here are 5 simple reasons why:

1. Incomplete Credential Management:  ICAM requires secure, end-to-end credential lifecycle management (issuance, renewal, revocation, and auditing).

Entra ID does not natively support strong authentication credentials such as smart cards or derived credentials meeting federal security standards.

Organizations needing Public Key Infrastructure (PKI) for secure authentication must integrate third-party solutions.

2. Weak Identity Proofing:  ICAM enforces strict identity verification before granting access to critical systems.

Entra ID lacks built-in support for high-assurance identity proofing following NIST Identity Assurance Levels (IAL2/3).

Industries such as finance, healthcare, and government require stronger identity proofing than what Entra ID provides.

3. No Continuous Authentication & Adaptive Risk Management:  Modern ICAM solutions include real-time behavioral analysis to adjust permissions dynamically.

Entra ID relies on pre-defined conditional access rules, which lack true adaptive security and risk-aware access decisions.

Continuous authentication (evaluating user behavior throughout a session) is absent in Entra ID.  Conditional access rules are useful but static. ICAM solutions offer dynamic risk-based access adjustments.

4. No Integration with Physical Security Systems:  ICAM unifies logical and physical access (e.g., linking badge systems with IT access controls).

Entra ID does not natively integrate with facility security systems like building access badges, biometrics, or physical key management.

This lack of convergence creates a security gap, where physical security and IT access are managed separately.

5. Limited Identity Governance & Administration (IGA):  ICAM ensures strict policy-driven access reviews to prevent over-provisioning of access rights.

Entra ID includes basic entitlement management but lacks automated role management, separation of duties enforcement, and access review workflows.

Without robust identity governance, organizations struggle to manage access permissions at scale.

Here is a snapshot of cloud-native ICAM capabilities vs. Entra ID:

The Kerberos Problem: A Legacy Authentication Risk

Many organizations using Entra ID still rely on Kerberos, a ticket-based authentication protocol originally developed in the 1980s!!! While historically significant, Kerberos introduces security and operational risks in modern environments. It requires precise synchronization across domain controllers, making it complex to maintain. Designed for on-premises Active Directory environments, it does not scale efficiently in hybrid-cloud architectures. Additionally, Kerberos authentication depends on a single Key Distribution Center (KDC), creating a single point of failure. The protocol is also vulnerable to Pass-the-Ticket attacks, where attackers steal authentication tickets to impersonate legitimate users.

Why Modern Authentication is Better

Replacing Kerberos with OAuth 2.0, SAML, and certificate-based authentication strengthens security and aligns with modern cloud-native security practices.

OAuth 2.0 – Token-based, stateless authentication for cloud applications, reducing credential exposure.

SAML (Security Assertion Markup Language) – An XML-based protocol for federated identity management and secure single sign-on (SSO).

Certificate-Based Authentication – More secure than passwords or Kerberos tickets, preventing phishing-based account takeovers.

Replacing Kerberos with OAuth, SAML, and certificate-based authentication enhances security and removes legacy risks. If you’re looking for Zero Trust, this is the way!

Final Verdict: Entra ID is a Cloud-Based Active Directory, Not ICAM

Despite its cloud enhancements, Entra ID remains an evolution of Active Directory rather than a fully capable ICAM platform. While it offers federated authentication, cloud-based SSO, and conditional access, it lacks the depth of credential management, identity proofing, adaptive risk control, and physical security integration required for modern security frameworks. Organizations needing robust security should either adopt a dedicated ICAM platform or augment Entra ID with additional security tools.

For enterprises demanding strong credential management, high-assurance identity proofing, real-time risk-adaptive access control, and integration with physical security systems, Entra ID alone will not suffice. Modern security requires a rethinking of legacy systems, and in many cases, the best approach is to move beyond Active Directory and Entra ID entirely.