Short answer:
In Entra ID (Azure AD), use a Distribution List for email-only communication. Use a Security Group when you need to manage access, permissions, or application assignments.
Summary:
This guide explains the difference between group types in Entra ID and how to choose the right one for email signatures, communication, and access management.
Understanding group types in Entra ID
In Entra ID, all collections of users are referred to as Groups, but they serve different purposes depending on their type:
- Distribution Lists – Used for sending emails to multiple recipients
- Security Groups – Used for access control and permissions (and can also be mail-enabled)
- Microsoft 365 Groups – Used for collaboration (Teams, SharePoint, Outlook)
What’s the difference?
- Distribution Lists are designed for email communication only
- Security Groups are used for permissions and access control, and can optionally receive emails
When to use a Distribution List
Use a Distribution List when email communication is your only requirement:
- No need for access or permission management
- Simple and efficient for announcements or internal communication
- Ideal for segmentation in email signature solutions like Xink
When to use a Security Group
Use a Security Group when you need to control access:
- Assign permissions to applications, files, or systems
- Manage access in Microsoft 365 services (e.g. SharePoint, Teams)
- Can also be mail-enabled if needed
Performance considerations
In Entra ID, performance impact is less visible than in on-prem Active Directory, but good design still matters:
- Avoid using Security Groups when email-only functionality is sufficient
- Keep group structure simple and purpose-driven
- Use the right group type for the right task to reduce complexity
Supported group types in Xink
Xink supports group-based segmentation using Entra ID groups:
- Distribution Lists
- Security Groups
- Nested groups (depending on configuration and source)
Summary
- Use Distribution Lists for email communication
- Use Security Groups for permissions and access control
- Use Microsoft 365 Groups for collaboration scenarios
- Choose the simplest group type that meets your needs
