Unlocking Enterprise Security: Why Passkeys and Passwordless Authentication with Microsoft Entra ID Are the Future

Looking for the latest on digital security and identity management? This blog post breaks down why passkeys and passwordless authentication are quickly becoming the gold standard for organizations everywhere. As cyber threats evolve and user expectations rise, relying on passwords alone just isn’t enough. Here, you’ll discover how passkeys work, the advantages of going passwordless, and how Microsoft Entra ID empowers businesses to simplify access, boost compliance, and scale security across hybrid and cloud environments. Whether you’re an IT leader, security professional, or simply curious about modern authentication, this blog will guide you through the benefits and practical impact of making the switch, and show you how to get started.

What Are Passkeys? 

Passwords have been the backbone of digital security for decades, but their weaknesses are now impossible to ignore. Passkeys represent a new era, moving beyond passwords to methods that are both more secure and user-friendly. Passkeys are physical or platform-bound credentials (like FIDO2 security keys or device-based credentials) that replace traditional passwords with cryptographic authentication. 

How Do Passkeys Work? 

Passkeys leverage public key cryptography to make authentication secure and seamless: 

• When you register a passkey, a public key is shared with the authentication service (such as Microsoft Entra ID). 

• The private key remains securely stored on your device (in hardware like TPM chips or Secure Enclave). 

• Authentication happens when you prove possession of the private key, often using biometrics or a PIN. 

• Attackers need physical access to your device and cannot simply steal or guess your password. 

• Embedded in the workflow.
  Evidence: Copilot prompts/checklists in standard operating procedures, playbooks in Teams/SharePoint, usage concentrated in target scenarios, not just sporadic clicks. 

• Trusted and compliant by design.
  Signals: clear policies people understand, reduced “shadow AI,” fewer policy exceptions, auditability through Purview. 

These lenses help you describe success in business terms so you can fund it, protect it, and grow it. 

Their Place Among the Alternatives 

Passkeys are just one part of a growing passwordless authentication ecosystem. Here's how they fit in: 

• Work alongside biometrics (Windows Hello, Face ID) for secure access. 

• Authenticator apps (Microsoft Authenticator) provide passwordless sign-in via mobile notifications or biometrics. 

• Hardware tokens (YubiKey, RSA SecurID) offer physical credentials for high-security environments. 

• While traditional passwords and some forms of multi-factor authentication (MFA) are still common, passkeys and other passwordless methods are rapidly gaining ground due to their superior security and usability. 

Better Together? 

Passwordless authentication doesn't mean abandoning all other methods. In fact, combining passkeys with biometrics or PINs creates a multi-factor experience that's both seamless and highly secure. For organizations, this means: 

• Fewer helpdesk tickets 

• Reduced IT costs 

• Better user experience 

• Microsoft's own case studies show login success rates jumping from 32% to 98% after adopting passwordless solutions. 

Advantages & Disadvantages

Advantages:

• Enhanced Security: Eliminates risks like phishing, credential stuffing, and brute-force attacks. No shared secrets means attackers can’t simply “sign in” with stolen credentials.

• Improved User Experience: No more remembering or resetting passwords. Users authenticate quickly and consistently across devices.

• Reduced Costs: Organizations save on password management and helpdesk support. The average password reset costs $70 in lost productivity and IT services.

• Compliance & Scalability: Solutions like Microsoft Entra ID help organizations meet regulatory requirements and scale identity management across hybrid environments.

Disadvantages:

• Hardware Requirements: Some methods require specific devices or tokens.

• Adoption Curve: Users and IT teams must adapt to new workflows and technologies.

• Biometric Spoofing Risks: Lower-end biometric sensors can be fooled, though advanced systems (like Apple Face ID) are highly resistant.