ADFS in Multi-tenant scenarios

Multi-tenant federation with single AD FS

A single high available AD FS farm can federate multiple forests if they have 2-way trust between them. These multiple forests may or may not correspond to the same Azure Active Directory.

Step 1: Establish a two-way trust

For AD FS in contoso.com to be able to authenticate users in fabrikam.com, a two-way trust is needed between contoso.com and fabrikam.com. Follow the guideline in this article to create the two-way trust.

Step 2: Modify contoso.com federation settings

The default issuer set for a single domain federated to AD FS is "http://ADFSServiceFQDN/adfs/services/trust", for example, http://fs.contoso.com/adfs/services/trust. Azure Active Directory requires unique issuer for each federated domain. Since the same AD FS is going to federate two domains, the issuer value needs to be modified so that it is unique for each domain AD FS federates with Azure Active Directory.

On the AD FS server, open Azure AD PowerShell (ensure that the MSOnline module is installed) and perform the following steps:

Connect to the Azure Active Directory that contains the domain contoso.com Connect-MsolService Update the federation settings for contoso.com Update-MsolFederatedDomain -DomainName contoso.com –SupportMultipleDomain

Issuer in the domain federation setting will be changed to "http://contoso.com/adfs/services/trust" and an issuance claim rule will be added for the Azure AD Relying Party Trust to issue the correct issuerId value based on the UPN suffix.

Step 3: Federate fabrikam.com with AD FS

In Azure AD PowerShell session perform the following steps: Connect to Azure Active Directory that contains the domain fabrikam.com

Connect-MsolService Convert-MsolDomainToFederated -DomainName fabrikam.com -Verbose -SupportMultipleDomain

Recommendations

Microsoft recommends having a single tenant in Azure AD for an organization and to use Administrative Units.

Administrative units in Azure Active Directory

Use administrative units for more granular delegation of permissions in Azure Active Directory.

As a Global Administrator or a Privileged Role Administrator, you can use the Azure portal to:

  • Create administrative units
  • Add users and groups members of administrative units
  • Assign IT staff to administrative unit-scoped administrator roles.

Administrative units apply scope only to management permissions. They don't prevent members or administrators from using their default user permissions to browse other users, groups, or resources outside the administrative unit. In the Microsoft 365 admin center, users outside a scoped admin's administrative units are filtered out. But you can browse other users in the Azure portal, PowerShell, and other Microsoft services.

What is supported with Administrative Units?

Administrative unit management

PermissionsGraph/PowerShellAzure portalMicrosoft 365 admin center
Creating and deleting administrative unitsSupportedSupportedNot supported
Adding and removing administrative unit members individuallySupportedSupportedNot supported
Adding and removing administrative unit members in bulk by using CSV filesNot supportedSupportedNo plan to support
Assigning administrative unit-scoped administratorsSupportedSupportedNot supported
Adding and removing administrative unit members dynamically based on attributesNot supportedNot supportedNot supported

User management

PermissionsGraph/PowerShellAzure portalMicrosoft 365 admin center
Administrative unit-scoped management of user properties, passwords, and licensesSupportedSupportedSupported
Administrative unit-scoped blocking and unblocking of user sign-insSupportedSupportedSupported
Administrative unit-scoped management of user multifactor authentication credentialsSupportedSupportedNot supported

Group management

PermissionsGraph/PowerShellAzure portalMicrosoft 365 admin center
Administrative unit-scoped management of group properties and membersSupportedSupportedNot supported
Administrative unit-scoped management of group licensingSupportedSupportedNot supported
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