In this article about cloud migrations, you’ll learn:
- Why Active Directory (AD) often becomes the most complex part of Microsoft 365 migrations
- How directory sprawl creates hidden challenges for MSPs and their clients
- When to use a full cutover versus a phased migration approach
- How automation helps maintain consistency across identity systems
- Practical steps to keep users and access aligned throughout a transition
Identity trends come into sharper view
Microsoft 365 migrations have become a core part of how managed service providers support their clients. Whether the goal is cloud adoption, tenant consolidation or integration after a merger, most projects begin by focusing on workloads such as email, collaboration tools and file storage.
As the work progresses, identity tends to come into sharper focus.
Active Directory plays a central role in how users sign in, manage devices and grant access across systems. Over time, these environments grow more complex as users, groups, policies and applications are layered on one another.
At the same time, evolving security requirements are prompting organizations to revisit how they structure identity. This year, Microsoft plans to retire legacy encryption protocols, such as RC4, in Active Directory authentication. This is an example of how security changes are driving identity modernization.
For MSPs, this shift highlights the importance of treating identity as a core part of migration planning.
How to properly prepare the identity environment for transition
A thoughtful approach to Active Directory can help reduce disruption and create a smoother path to the cloud. Below are five ways MSPs can support their clients through this process.
1. Begin with a clear understanding of the identity environment
A successful migration starts with visibility. Many organizations have identity environments that have evolved over years, sometimes decades, with changes made along the way to support new systems, teams and business needs.
This often results in:
- Duplicate or outdated user accounts
- Complex group structures
- Policies tied to legacy systems
- Inconsistent or undocumented attributes
Taking time to understand how identity is currently structured helps uncover how everything is connected. MSPs can guide clients through an assessment that maps users, groups, devices, and application dependencies. This step also helps identify areas where cleanup or alignment may improve the overall process.
With a clearer picture in place, migration planning becomes far more predictable.
2. Tackle directory sprawl early
Directory sprawl is a common challenge that becomes more visible during a migration. As organizations grow, identity environments often expand without consistent documentation or standardization.
When it is time to bring systems together, this can lead to complications such as:
- Overlapping or conflicting group memberships
- Duplicate identities across environments
- Misaligned attributes and policies
These issues can affect how access is granted and how systems interact with one another.
Addressing sprawl early helps reduce friction later. MSPs can work with clients to:
- Remove inactive accounts and unused groups
- Standardize naming conventions and key attributes
- Document how identities relate to applications and policies
A more organized directory creates a stronger foundation for migration and ongoing management.
3. Align the migration approach with the environment
Every organization approaches identity migration from a different starting point. Some environments are relatively simple, while others involve multiple directories, tenants or business units.
In some cases, a full cutover makes sense. This approach transitions users and systems within a defined window and works well for smaller or less complex environments.
In other situations, a phased migration provides more flexibility. This allows identity systems to operate side by side for a certain period, which can be helpful when coordinating across larger organizations or maintaining continuity during extended transitions.
Each approach comes with its own considerations. MSPs play an important role in helping clients weigh factors such as timing, complexity and operational impact. MSPs can then help their clients choose a path that fits their needs.
4. Use automation to maintain consistency
Identity environments often include many objects and attributes. Managing these manually during a migration can introduce inconsistencies that affect access and user experience.
Automation helps bring structure to this process. It supports:
- Consistent replication of directory data
- Enforcement of policies across environments
- Visibility into changes as they occur
- Reduced reliance on manual updates
By introducing automation, MSPs can help keep identity data aligned throughout the transition. This is especially important with migrations over time and when multiple systems must stay in sync.
5. Keep identity continuity front and center
From the user’s perspective, identity enables daily work. Logging in, accessing applications and working across devices all depend on it.
When identity systems are disrupted, the effects are immediate. Users may lose access to tools, policies may not apply correctly, and support teams can quickly become overwhelmed.
Maintaining continuity means keeping identity aligned throughout the migration. This includes:
- Ensuring users retain access to the resources they need
- Keeping permissions and policies consistent
- Supporting authentication across both existing and new environments
Stacey Farrar
MSPs can help by coordinating across teams, testing identity scenarios and monitoring systems as changes are introduced. A steady approach helps keep the transition as seamless as possible.
Identity as an ongoing priority
As organizations adopt cloud services and modern security frameworks, identity is more central to how to operate systems and manage access.
For MSPs, this creates an opportunity to guide clients beyond individual projects and support long-term identity strategies. This includes helping organizations evaluate their directory environments, plan for modernization and maintain alignment as their systems evolve.
A strong foundation in identity management allows MSPs to support clients through complex transitions with greater confidence and clarity.
FAQs
Q: Why does identity become more complex during a Microsoft 365 migration?
Identity systems connect users, devices, applications and policies. As these relationships move into a new environment, their interdependencies become more visible.
Q: What is directory sprawl?
Directory sprawl refers to the buildup of users, groups and policies over time, often without consistent organization or documentation.
Q: How do MSPs decide between a cutover and a phased migration?
The decision depends on factors such as the environment’s size and complexity, and the level of flexibility needed during the transition.
Q: What is identity drift?
Identity drift occurs when differences develop between identity systems, such as on-premises directories and cloud platforms, during a migration.
Q: Why is automation helpful in identity migrations?
Automation supports consistency, reduces manual effort and helps keep systems aligned throughout the process.
Q: How can MSPs help maintain user access during a migration?
By planning carefully, coordinating across teams and monitoring identity systems, MSPs can help ensure users continue working without interruption.
Stacey Farrar is a senior manager at BitTitan, where he leads cloud and migration strategy initiatives, focusing on market trends and competitive dynamics to help service providers capture opportunities in cloud and directory migrations.
Featured image: emwe studio — stock.adobe.com
