Migrate to Password Hash Sync authentication

Implementation Effort: Medium – After PHS already enabled, the remaining effort focuses on reconfiguring Entra ID as the primary authentication authority and decommissioning federation infrastructure.

User Impact: Medium – Users may see changes to their sign-in experience, requiring communication and support.

Overview

Migrating from federated authentication to Microsoft Entra Password Hash Sync (PHS) transitions the authentication authority from on-premises federation systems to Microsoft Entra ID. This shift simplifies the identity infrastructure and improves overall security posture. Because the dependency on federation servers is removed, the organization also advances the principle of "Assume breach" by shrinking the on-premises attack surface and removing an entire class of infrastructure vulnerabilities. Though this change does not directly enforce access restrictions, it indirectly contributes to "Use least privilege access" by centralizing control and enabling better audit, telemetry, and policy enforcement in the cloud. Failure to complete this migration leaves authentication dependent on legacy federation infrastructure that lacks visibility, modern controls, and resilience against advanced threat actor techniques.

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