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What is a Directory Service? AD, LDAP & IAM

What is a Directory Service? AD, LDAP & IAM

A directory service is a centralised platform for managing identities, devices, and applications across a network. It stores data about users and resources, and handles two core functions: authentication, which verifies a user's identity, and authorisation, which determines what that user is permitted to access.

Active Directory (AD) and Entra ID are widely used directory services that help organisations secure and streamline access to their IT environments. In modern IT, a directory service is typically integrated into a broader Identity and Access Management (IAM) environment rather than deployed in isolation.

How a Directory Service Works

Directory services rely on established protocol standards to handle authentication and authorisation. LDAP (Lightweight Directory Access Protocol) is one of the most widely used. Here is how it handles each function.

Authentication

Authentication confirms that a user is who they claim to be. In LDAP, this is handled through a bind operation:

  1. The user attempts to sign in by providing a username in the form of a Distinguished Name (DN) and a password.

  2. LDAP checks whether the supplied credentials are correct.

  3. If the credentials match, the user is authenticated and authorisation begins.

Authorisation

Authorisation determines what the authenticated user is permitted to do:

  • Permissions are defined in Access Control Lists (ACLs), which specify which users can access which network resources.

  • A standard employee may only view their own data.

  • A system administrator may create, modify, and delete user accounts across the directory.

Directory Service Protocols

LDAP is one of several open standards used within directory services. Open protocols are essential because directory services must integrate with a broad range of systems. The most commonly used protocols are:

Protocol

Full Name

Primary Use

Common In

LDAP

Lightweight Directory Access Protocol

Storing and retrieving directory data; authentication and authorisation

AD, ApacheDS, IBM Security Directory

Kerberos

Kerberos

Network authentication via encrypted tickets; enables SSO without transmitting passwords over the network

Active Directory, Unix environments

SAML

Security Assertion Markup Language

Sharing identities across domains to support Single Sign-On (SSO)

Google Workspace, Microsoft 365

A note on "lightweight": LDAP was developed from the older X.500 standard, which transmitted large volumes of data and placed significant processing demands on connected devices. LDAP was designed to be efficient: minimal data transfer, low processing overhead, and fast response times. A user may query a directory service dozens of times per day without being aware of it, which makes speed a critical design requirement.

Examples of Directory Services

Several directory services are in common use across enterprise IT environments:

Directory Service

Deployment

Protocols

Best Suited For

Microsoft Active Directory (AD)

On-premises

LDAP, Kerberos, SAML

Windows environments; user management and authentication

Entra ID (formerly Azure AD)

Cloud-based

OAuth, SAML, OpenID Connect

Microsoft 365 and SaaS application access

Red Hat Directory Server (RHDS)

On-premises

LDAP

Linux and Unix-based enterprise networks

Apache Directory Server (ApacheDS)

Open-source

LDAP, Kerberos

Identity management in Java-based environments

IBM Security Directory Server

Enterprise

LDAP

Large-scale directory management

Directory Services Within an IAM Solution

A directory service handles authentication and authorisation, but it does not manage the full identity lifecycle. A modern IAM environment extends these capabilities to cover onboarding, role changes, and offboarding, as well as compliance and auditability. HelloID builds on the directory service through four dedicated modules.

Access Management

Not all directory services natively support Single Sign-On (SSO) or Multi-Factor Authentication (MFA). The HelloID Access Management module adds these capabilities, giving users secure, streamlined access across all connected applications from a single authenticated session.

Provisioning

Managing accounts and permissions directly in Active Directory or Entra ID is manageable for small teams. For organisations with hundreds or thousands of users, it quickly becomes unworkable, particularly where privacy and information security compliance is required.

The HelloID Provisioning module automates this using Attribute-Based Access Control (ABAC). HelloID queries the HR system multiple times per day, determines the correct accounts and access rights based on each person's current role, department, and location, and propagates those settings automatically to the directory service and all other connected target systems. The directory service continues to handle authentication and authorisation in the background; Provisioning ensures that every setting across every user is accurate, consistent, and auditable at scale.

Service Automation

Automated provisioning covers the majority of access requirements. Exceptions will always arise: a project may require temporary access to a shared folder, or an employee may need an additional licence for a specific tool.

Rather than routing these requests to a second-line administrator making changes directly in Active Directory, the HelloID Service Automation module allows helpdesk staff, managers, or the employees themselves to submit and approve changes through a structured self-service workflow. Changes are applied to the directory service through the same controlled, auditable process used for automated provisioning.

Governance

The HelloID Governance module ensures that all changes to accounts and access rights are traceable, and that the overall access landscape is reviewed and adjusted at regular intervals. Automated checks identify inconsistencies, close access gaps, and keep the role model current.

This embeds identity and access management fully within the Plan-Do-Check-Act cycle required by ISO 27001 and related information security standards.

Learn More About Directory Services in HelloID

To find out how HelloID integrates with directory services such as Active Directory and Entra ID, contact our team.

What is a directory service?

A directory service is a centralised system that stores and manages information about users, devices, and resources. It provides authentication, authorisation, and search functionality within networks, often via standard protocols such as LDAP or Kerberos.

What is LDAP?

LDAP (Lightweight Directory Access Protocol) is a protocol for querying and managing information in a directory service. It is used, among other things, for authentication and authorisation of users within networks.

What is Active Directory?

Active Directory (AD) is Microsoft's directory service that manages network resources. AD provides authentication, authorisation, and centralised management of users, groups, and devices within Windows networks using protocols such as LDAP and Kerberos.