Sophos + Microsoft: Why Identity Threats Are Your Next Big Sales Conversation

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New Sophos research reveals the need for improved identity security to close a critical security gap – which you can deliver with Sophos MDR and Sophos ITDR, integrated with Microsoft Entra ID.

May 20 2026 By

Identity is the cybersecurity perimeter – and the newly released Sophos State of Identity Security 2026 report makes clear that it’s under siege. Drawing on insights from 5,000 IT and cybersecurity leaders across 17 countries, the findings make a compelling case for action:

  • 71% of organizations experienced at least one identity-related breach in the past 12 months, with an average of three incidents per affected organization.
  • 67% of ransomware victims confirmed the attack and their most significant identity breach were the same event, establishing identity as the front door for ransomware.
  • The average cost to rectify an identity breach that could not be stopped until damage was done reached $1.64 million.
  • For the 14% of breached organizations that could not stop the attack, the consequences were severe: data theft (49%), ransomware (48%), and financial theft (47%).

For your customers, the question is no longer if identity will be targeted, but when – and whether they will be ready.

Microsoft Entra ID is a powerful IAM platform, but it isn’t a defense solution

Many organizations already rely on Microsoft Entra ID for identity and access management. It does an excellent job of managing identities, group memberships, conditional access policies, and privileged access controls. But Entra ID was designed as an Identity and Access Management (IAM) platform, not a threat defense tool – and that distinction matters.

Insights from the Sophos Incident Response team reveal that 95% of Microsoft Entra ID environments contain critical misconfigurations. Combine that with attacker tradecraft that increasingly leverages stolen credentials, OAuth token theft, and the abuse of non-human identities – cited in 41% of identity breaches – and customers running Entra ID alone are exposed.

Sophos MDR with Sophos ITDR: Defense in depth for Microsoft environments

This is where the Sophos and Microsoft “Stronger Together” story comes alive for your customers:

  • Sophos MDR delivers 24/7 proactive threat hunting, using telemetry from Entra ID and other Microsoft tools to detect advanced, AI-driven and human-led attacks. Sophos MDR can execute Microsoft response actions – including in Entra ID – directly within your customer’s Microsoft 365 environment to neutralize threats in real time.
  • Sophos ITDR continuously scans Entra ID environments to identify misconfigurations and identity-based security gaps, monitors the dark web for compromised credentials, and detects identity threats that bypass traditional controls.

Together, Sophos MDR, Sophos ITDR and Entra ID transform a security exposure into a fully defended identity layer, backed by an agentic SOC, expert analysts, and proprietary threat detectors purpose-built for Microsoft environments.

The partner opportunity is now

Identity security is at the top of every CISO’s agenda in 2026. Customers are looking for trusted advisors who can extend the value of their existing Microsoft investments rather than rip and replace. A combined Sophos and Microsoft proposal addresses that need head-on – and gives you a high-margin, recurring services conversation to lead with.

For customers that already use Entra ID, adding Sophos significantly elevates their identity defenses while extending your footprint. For those not yet using Entra ID, you can provide a unified identity solution combining both Sophos and Microsoft solutions.

Take the next step

Ready to position Sophos MDR and Sophos ITDR alongside Microsoft Entra ID for your customers?

Everything you need to start is already in place:

About the Author

Sally is a Marketing Director at Sophos and responsible for many of Sophos’ external research-based reports and educational resources. With over 13 years’ experience in cybersecurity, Sally combines deep knowledge of both adversary trends and Sophos technologies to help organizations optimize their protection.