What Manufacturers Need to Know about Microsoft Entra ID

01/30/26

Identity has become the new frontline of cybersecurity and for manufacturers, it is now one of the most important parts of protecting both IT and OT environments. As cyberattacks grow more sophisticated and regulations tighten, Microsoft Entra ID (formerly Azure Active Directory) has emerged as a critical foundation for secure access, Zero Trust, and modern identity governance.

In 2026, manufacturers cannot afford to treat identity as an afterthought. With distributed workforces, connected machines, cloud‑based ERP systems, and third‑party vendors accessing sensitive environments, identity is now the control point that determines whether your organization stays secure, or becomes the next breach headline.

Here is what manufacturers need to know about Microsoft Entra ID and why it is becoming essential to their cybersecurity strategy.

  1. Identity Is Now the Primary Attack Surface

More than 80% of modern cyberattacks involve compromised credentials. For manufacturers, this risk is amplified by:

  • Shared OT logins
  • Legacy systems without MFA
  • Remote maintenance access from vendors
  • Cloud and hybrid ERP environments
  • Distributed production facilities

Microsoft Entra ID provides a unified identity layer that protects access across IT, cloud, and increasingly OT systems. With conditional access, MFA, and continuous risk evaluation, Entra ID helps manufacturers shut down the most common attack vector: stolen or misused credentials.

  1. Zero Trust Is No Longer Optional

Manufacturers are rapidly adopting Zero Trust, not because it is trendy, but because it is necessary. Entra ID is the backbone of Microsoft’s Zero Trust architecture, enabling:

  • Identity‑based access controls
  • Verification of every user and device
  • Least‑privilege access enforcement
  • Continuous monitoring of identity risk

In 2026, Zero Trust became a requirement for cyber insurance, compliance frameworks, and supply chain security. Entra ID gives manufacturers the tools to implement it without disrupting operations.

  1. Entra ID Governance Helps Manufacturers Meet New Compliance Demands

With new cyber regulations emerging, manufacturers must prove they have strong identity governance. Entra ID Governance provides:

  • Automated access reviews
  • Privileged identity management (PIM)
  • Lifecycle workflows for onboarding/offboarding
  • Audit‑ready reporting

This is especially important for manufacturers working with defense, aerospace, medical device, or automotive customers, industries where identity controls are now part of compliance audits.

  1. Securing OT Environments Through Identity Integration

OT systems traditionally relied on isolated networks and shared credentials. That model no longer works. Entra ID is increasingly being used to secure:

  • SCADA and HMI access
  • Remote vendor maintenance
  • Industrial IoT devices
  • Edge computing workloads
  • Cloud‑connected PLCs and sensors

By extending identity controls into OT, manufacturers can reduce the risk of unauthorized access and lateral movement, two common tactics in modern OT attacks.

  1. Stronger Protection for Cloud‑Based ERP and Business Systems

As more manufacturers move to cloud ERP platforms like Epicor Kinetic, identity becomes the gatekeeper for:

  • Production data
  • Financial systems
  • Supply chain workflows
  • Customer information
  • Engineering documentation

Entra ID provides secure single sign‑on (SSO), conditional access, and identity‑driven threat detection across all cloud applications, ensuring only the right people access the right systems at the right time.

  1. AI‑Driven Identity Protection Is a Game Changer

Microsoft has infused Entra ID with AI‑powered threat detection that analyzes billions of signals daily. Manufacturers benefit from:

  • Real‑time detection of risky sign‑ins
  • Automated blocking of suspicious activity
  • Continuous evaluation of user and device trust
  • Adaptive access policies based on behavior

This level of intelligence is critical for manufacturers who lack large internal security teams.

  1. Vendor and Third‑Party Access Must Be Controlled

Manufacturers rely heavily on external partners, equipment vendors, integrators, contractors, and service providers. Entra ID enables secure external access with:

  • Temporary access controls
  • Just‑in‑time permissions
  • Identity verification for guests
  • Detailed audit trails

This reduces the risk of supply chain breaches, which are increasingly common in manufacturing.

The Bottom Line

In 2026, Microsoft Entra ID is no longer just an IT tool, it is a strategic security platform that manufacturers need to protect their people, systems, and production environments. As identity becomes the core of Zero Trust, compliance, and cyber resilience, manufacturers who modernize their identity strategy will be far better positioned to defend against evolving threats.

Those who delay will face higher cyber risk, increased audit pressure, and greater operational exposure.

Manufacturers looking to modernize their identity strategy and strengthen cybersecurity can rely on 2W Tech as a trusted partner. Our team helps organizations implement Microsoft Entra ID as the foundation of a secure, scalable identity architecture, from deploying MFA and conditional access to rolling out Zero Trust, privileged identity management, and automated governance workflows. We specialize in unifying identity across cloud, IT, and OT environments, ensuring secure access to ERP systems like Epicor, shop‑floor equipment, remote vendors, and distributed teams. With deep expertise in Microsoft’s security ecosystem and decades of manufacturing experience, 2W Tech helps clients reduce risk, meet emerging compliance requirements, and builds a resilient identity posture that supports long‑term growth.

Read More:

How AI Is Transforming Quality Control on the Factory Floor

How Manufacturers Can Prepare for the Next Wave of Cyber Regulations

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