Scalable Identity Strategies: Choosing Between Funnel-Based and Region-Based Azure AD B2C Tenant Models
As organizations expand globally, selecting the right Azure AD B2C identity architecture becomes critical for maintaining compliance, performance, and user experience. At Zappsec, we help businesses navigate the complexities of identity management with scalable, secure solutions tailored to their specific requirements. This guide explores the two primary Azure AD B2C tenant models—funnel-based and region-based—to help you make informed decisions for your global identity infrastructure.
The Two Models: An Overview
1. Region-Based Model
Each region (e.g., NOAM, EMEA, APAC) has its own dedicated Azure AD B2C tenant.
Apps directly point to regional tenants for user authentication and policy enforcement.
All authentication, user data, and token issuance occur within the regional tenant.
2. Funnel-Based Model
A global funnel tenant serves as the entry point for all authentication requests.
The funnel tenant redirects users to their regional tenant based on predefined criteria (e.g., geolocation, app client ID, or user attributes).
Actual authentication occurs in the regional tenant, but app configurations remain centralized in the funnel tenant.
Authentication Flows Explained
Region-Based Authentication Flow
User Navigation: A user accesses a regional endpoint (e.g., login-emea.myhr.com).
Traffic Routing: The user connects directly to the appropriate regional tenant (e.g., EMEA).
Authentication: The regional tenant handles the full authentication process, including enforcing Conditional Access and issuing tokens.
Funnel-Based Authentication Flow
Global Entry Point: The user accesses a global endpoint (e.g., myhr.com).
Traffic Manager: Routes the user to the global funnel tenant.
Funnel Tenant: Determines the user's regional tenant using criteria like OpenID Federation with app client ID lookups or user attributes (e.g., geolocation) and redirects the user to the appropriate regional tenant.
Regional Tenant: Handles authentication, applies regional policies (e.g., MFA, Conditional Access), and issues a token.
Final Redirection: The user is redirected back to the application.
Advantages and Disadvantages
When to Use Which Model?
Region-Based Model is Ideal For:
Regulated Industries: Healthcare, finance, and government, where strict data residency and compliance (e.g., GDPR, CCPA, HIPAA) are non-negotiable.
Performance-Critical Apps: Applications requiring low latency and high reliability (e.g., financial trading platforms).
Localized User Bases: Organizations with region-specific apps or users that do not require a global presence.
Small App Portfolios: Easier to manage app registrations and policies across regions when the app portfolio is small.
Funnel-Based Model is Ideal For:
Large App Portfolios: Organizations with 100+ apps benefit from centralized management, as apps point to a single global endpoint.
Unified Branding: A global login URL (e.g., login.mycompany.com) ensures consistent branding and experience.
Early-Stage Global Expansion: Organizations entering new regions with small user bases can use a funnel tenant as a temporary architecture until the user base justifies a regional rollout.
Simplified App Integration: Reduces developer complexity by centralizing app registration and authentication logic.
Advanced Use Cases and Gotchas
Hybrid Approach:
Combine funnel-based and region-based models for the best of both worlds.
Use a funnel tenant for global apps requiring centralized integration.
Use regional tenants for compliance-critical or latency-sensitive apps.
Client ID Lookups in Funnel Tenant:
The funnel tenant uses OpenID Connect Federation to determine the regional tenant by querying a client ID lookup table.
Example: AppClient123 → NOAM Tenant.
Regulated Industries Considerations:
In industries like healthcare, compliance regulations often mandate that all authentication and data processing happen regionally.
The funnel tenant cannot process user credentials directly.
Authentication must occur entirely in the regional tenant.
Decision-Making Checklist
| Factor | Region-Based Model | Funnel-Based Model |
|---|---|---|
| Compliance | Meets strict data residency and regulatory requirements. | May violate regulations if funnel tenant processes login requests globally. |
| Latency Requirements | Ideal for low-latency, performance-critical apps. | Adds slight latency due to redirection. |
| App Portfolio Size | Best for small portfolios or region-specific apps. | Best for large portfolios with centralized integration. |
| Global Expansion Stage | Suitable for mature global organizations. | Ideal for early-stage global growth. |
| Failure Resilience | Regional outages are isolated. | Funnel tenant creates a global single point of failure. |
| Branding Consistency | Requires separate regional branding. | Ensures unified branding across all regions. |
Conclusion
Choosing between funnel-based and region-based Azure AD B2C tenant models depends on your organization's specific requirements around compliance, app portfolio size, global presence, and performance needs. For heavily regulated industries, region-based models provide the control and compliance required. For large app portfolios or early global expansion, funnel-based models simplify integration and management.
Hybrid strategies often strike the best balance by leveraging the strengths of each model while minimizing their respective weaknesses. Based on the subtle nuances between each model, enterprises can now design scalable, compliant, and user-friendly identity solutions tailored to their unique needs.
Ready to optimize your Azure AD B2C architecture for global scalability and compliance? Let Zappsec's identity experts help you design and implement the right solution for your business needs.
Contact us today to get started!
