Did you know that according to Gartner, 14 percent of a company’s budget can be saved by using public cloud adoption? Due to the current cloud transformation, you are most likely wondering if a better alternative is available for Active Directory.

What is an Active Directory?

An Active Directory consists of Microsoft software providing you with information access and organization within the directory of your operating system. Your active directory or AD is a link between your values and objects.

The idea is similar to the contacts app you have stored on your mobile device.

The objects are your individual contacts, with the phone numbers, emails, and addresses as your values. Your objects include a lot more than users and people including group objects like printers and computers.

What is a Cloud Directory?

When cloud directory services were first created, IAM or identity and access management services were available from the cloud.

A provider managed and hosted your server but all of your cloud directory services including software, load balancing, security, and configuration remained your responsibility.

As time passed, cloud directory services began to include new capabilities and components including support for nearly all IT resources. As a result, cloud directory no longer requires on-premises software or hardware for a substantial improvement in efficiency.

Why is an Active Directory Important?

AD is important for the organization of computers, users, and more. It is because it enables IT administration to organize the entire hierarchy of a company, the computers on a network, the users able to access your storage.

Why Do You Need an Alternative?

Web-based applications became extremely popular after AD. Linux and Mac systems replaced Windows workstations. This enabled the launch of cloud directory services. It also revolutionizes file storage, development tools, infrastructure, and processing.

This made IT network extremely different than in the past.

AD services are not designed for integration with the cloud, web-based applications, or Linux or Mac systems. Once you began using the new resources available for your company, third-party solutions became necessary for your AD to establish a connection with non-Microsoft systems, networks, and applications.

Eventually, the only way you could maintain identity management was with AD.

Your next issues included the much higher cost and new difficulties for your IT administration and end-users. This was the reason your only option was for your IT department to keep their on-premises infrastructure.

Unfortunately, you were not able to take optimal advantage of the lower costs and efficiency of an IT cloud directory. The companies that are able to leverage their identity management gained advantages.

This included not needing to upgrade hardware every couple of years and concerns regarding maintenance and availability. Cloud directory services became a better option than AD by embracing the numerous resources you are using on a daily basis.

This is when the cloud directory became so important as an alternative to AD. Modern cloud directory can change your identity access management services.

Cloud Identity as an Alternative

The result is replacing AD with a cloud directory to ensure better service for the cloud era. Cloud identity services are now the cloud’s core identity provider offering IT administration a single solution for centralizing your system and user management.

Cloud directory services also provide you with access to remote and local services, wireless and wired networks, virtual and physical storage and applications based on SAML and LDAP.

This eliminates your IT department’s concerns regarding management, maintenance, and availability. Your cloud directory services handle everything, enabling your IT department to receive the benefits of a cloud directory as opposed to an AD.

Pros and Cons of an Active Directory


  • Users can log in using the same credentials used somewhere else.
  • You no longer require a password and username for Outlook emails.
  • Setting up and using your directory is easier.
  • You can create your computer policies to secure and update your workstations automatically.
  • Domain names are provided at a faster speed.
  • Users can set permissions to share resources including printers and files
  • Eliminates the need to create and maintain your company’s user accounts
  • Your network is managed from a single point.
  • Cloud directory services are more secure than the others available.
  • Scalability increases.
  • Your service is easier to manage, control, and administrate.
  • Viewing of all your user information using a simple identity management


  • Using an AD directory is expensive due to the cost of your Windows server licenses. Your server hardware may require an update to run your Windows server.The cost of using your infrastructure is most likely high.
  • Your Active Directory is only used with Windows server software.
  • If your AD goes down, your network will as well.
  • Your infrastructure is more complicated for your users.
  • Your maintenance costs are high.
  • Setting up your network requires excellent planning.
  • Your network is more likely to be hacked.
  • An incorrectly set up network will require money and time to have to set up all over again.

Pros and Cons of a Cloud Directory


  • Cloud directory services are one of the least expensive options for using, upgrading and maintaining your system.
  • You receive a massive number of IT resources.
  • Your storage capacity is unlimited eliminating any concerns regarding the availability of space and storage.
  • Your software integration is a lot easier, occurs automatically and no additional efforts are necessary for integrating your software and applications.
  • There is no need for premises or infrastructure which decreases your operational costs while eliminating administration costs.
  • You receive 24/7 connectivity through your service level agreement.
  • You receive a web-based user interface making installation unnecessary for accessing your applications, services, and software.
  • Using cloud services offers your company reliability with a service platform you manage to ensure a much better IT infrastructure in-house.
  • As soon as your cloud registration is complete, you can access your information and system no matter where you are located provided you have internet connectivity. This eliminates time-zone and geographical barriers.
  • The management capabilities of your IT department is enhanced and simplified.
  • Your data can be stored a lot easier in the cloud to provide you with backup from your provider to take care of any recovery issues you experience.


  • Since you must surrender all of your company information to your service provider, you need to be careful about which provider you use.
  • Storing your information through the cloud can result in hack attacks and external threats.
  • Ensuring you have a good backup is extremely important.
  • You require a service provider with excellent maintenance standards and support for your server to remain connected 24/7.
  • Your service provider must be trustworthy because they will own and maintain all of your cloud services.

Never compromise security
for convenience, choose both!

Cloud Directory Services

Teamstack provides a cloud directory services, enabling management of all your permission levels, authentication methods, groups, and users in a secure and intuitive web interface.

Your group and user profiles can be customized enabling you to set specific settings and policies for every level. We provide you with complete control over your teams, organization, and company.