Microsoft Active Directory is often used in conjunction with Microsoft 365 E5 for identity management and authentication, providing on-premises directory services that can integrate with cloud-based services. Many organizations using Microsoft 365 E5 continue to rely on Active Directory for user and group management.

Azure is strongly complementary to Microsoft 365 E5 as it provides the underlying cloud infrastructure and a wide range of services that enhance Microsoft 365. Azure Active Directory (Azure AD) is the identity provider for Microsoft 365, and many other Azure services integrate tightly with the Microsoft 365 ecosystem. Further, organizations might utilize virtual machines, storage, and other services on Azure.