The Urgency of Identity Protection for Managed Service Providers

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In today’s rapidly evolving cybersecurity landscape, identity protection has become the frontline of defense for businesses of all sizes. The shift from traditional on-premises infrastructure to cloud-based environments has reshaped how Managed Service Providers (MSPs) secure their clients.

To explore this topic, Dropsuite’s Product Manager for Entra Backup, Bernard Clark, and security thought leader Matt Lee shared their expertise in a recent webinar. They discussed the increasing threats to identity systems, why MSPs must take a proactive approach to protection, and how Entra Backup can help mitigate risks.

This blog post distills the most valuable insights from that discussion and provides actionable takeaways for MSPs navigating today’s security challenges.

1. The Cybersecurity Landscape is Evolving

Matt Lee kicked off the conversation by emphasizing how the cybersecurity threat landscape is continuously changing. Attackers are shifting tactics, targeting identity systems as a primary vector. Microsoft Entra ID (formerly Azure AD) has become a critical piece of infrastructure, yet many organizations fail to recognize the necessity of protecting it.

Lee pointed out that 70% of human-operated ransomware attacks are now targeting businesses with fewer than 500 employees (Microsoft Cyber Signals Report). SMBs—who often rely on MSPs—are attractive targets due to limited security resources and lower barriers to entry for attackers. This reality means that protecting identity systems is no longer optional; it’s essential for preventing data breaches, business disruptions, and financial loss.

Takeaway: MSPs must acknowledge that cloud-based identity systems are prime targets and take immediate steps to safeguard them.

2. Why Identity Protection is Different from Traditional Backup

One of the most eye-opening moments of the discussion was the realization that many MSPs historically never had to think about backing up Active Directory. As Bernard Clark explained, in the past, Active Directory was indirectly backed up as part of server images. However, with cloud-based identity platforms like Entra ID, that traditional approach no longer applies.

MSPs who assume Microsoft’s default retention policies are enough risk serious gaps in protection. Entra ID doesn’t provide a native way to roll back misconfigurations, accidental deletions, or malicious changes after 30 days (Microsoft Learn: Entra ID Recovery). This makes third-party backup solutions like Dropsuite’s Entra Backup a crucial safeguard against data loss and compliance risks.

Takeaway: Entra ID is not automatically protected—MSPs must take responsibility for backing up configurations, users, groups, and policies to ensure quick recoverability.

3. CIS Controls and Practical Security Implementation

A significant portion of the webinar focused on the CIS (Center for Internet Security) Controls, particularly version 8.1, which provides a structured framework for improving cybersecurity. Lee highlighted how CIS Controls help MSPs move beyond compliance checkboxes to actual security best practices.

He explained that CIS is tactical and operational, offering a clear roadmap for securing identity systems. The controls make it easier to align with frameworks like NIST while focusing on practical steps, such as:

  • Centralized authentication (5.6): Ensuring all users authenticate through a secure identity provider.
  • Centralized authorization (6.7): Defining role-based access and monitoring privileges.
  • Monitoring and auditing changes (6.8): Keeping a log of identity changes for forensic investigations and compliance.

(CIS Controls v8)

Takeaway: CIS Controls offer a structured way for MSPs to improve security beyond compliance, with an emphasis on identity protection and centralized management.

Final Thoughts: The MSP’s Role in Cyber Resilience

One theme remains clear as we continue to explore this topic: MSPs are now the front line of identity security. The shift to cloud-based identity systems like Entra ID means that security is no longer just protecting endpoints and servers—it’s about safeguarding who has access to what and when.

By leveraging best practices like CIS Controls, understanding the evolving threat landscape, and using purpose-built tools like Dropsuite’s Entra Backup, MSPs can:

  • Differentiate themselves by offering advanced security services
  • Reduce risk for their customers by proactively protecting identity data
  • Ensure business continuity by having quick and easy rollback options

Final Takeaway: MSPs who take a proactive approach to identity protection will not only reduce risk and improve security but also increase customer trust and drive long-term business success.

Next Steps

Want to learn how Dropsuite’s Entra Backup can help your MSP protect identity data?

Start a free trial of Entra Backup or reach out to us to learn more about Entra Backup.