A cloud-based identity and access management service for securing user authentication and resource access
The primary challenge Cloud Sync was designed to solve was not that Entra Connect Sync was inadequate at synchronization. It was that Connect Sync requires you to run and maintain a full synchronization engine on-premises. Cloud Sync moves the synchronization service into Microsoft Entra and uses lightweight provisioning agents on-premises to communicate with AD. This reduces the amount of identity infrastructure you have to deploy, patch, monitor, and maintain.
The biggest advantages are effectively simpler architecture, cloud-managed processing, easier scalability, and better support for distributed or multi-forest AD environments. Multiple provisioning agents can provide redundancy without having to maintain a traditional Connect Sync server configuration, and additional forests can be connected to the same Entra tenant without building a complex synchronization architecture around a single Connect Sync server.
However, Cloud Sync is not simply "Connect Sync but better." Connect Sync still has a broader feature set, including more advanced synchronization rules and customization, and it remains preferable when you need capabilities that Cloud Sync doesn't support or fully support. Performance is also not usually the reason to choose Cloud Sync; Connect Sync is already capable of handling very large directories.
So, for a simple single-forest environment where Connect Sync meets all requirements, Cloud Sync may provide little tangible benefit. Its real value is for organizations that want to minimize on-premises identity infrastructure, have multiple/distributed forests, or want synchronization to become increasingly cloud-managed. Microsoft is clearly positioning Cloud Sync as the longer-term direction, but Connect Sync remains important for scenarios requiring its more mature and extensive functionality.
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hth
Marcin