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It doesn’t change anything for the company with exception to billable IT time used when the authenticator confuses users which is already high with only one authenticator.
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It doesn’t report location, Entra login reports location regardless of authentication method used.
Ms auth is a mobile only application. Not even available on windows or macOS. The point of it is to provide a second factor of authentication in the for of “something you have”. There are a few factors that can be used for authentication. Something you know (password), something you have (hardware like a key or a phone), and something you are (iris scan, DNA, fingerprint, other biometric). Ms auth uses something you have and something you are to authenticate most users. You provide a password and then you prove you have your cellphone and your cellphone checks your biometrics to see if you are you. In that way, it is effectively checking all 3 factors.