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The on-premises SCIM provisioning application in Azure currently supports only Bearer Authentication and does not offer OAuth authentication methods such as OAuth Authorization Code Grant or OAuth2 Client Credentials Grant. The reason for the lack of OAuth authentication in the on-premises SCIM provisioning app in Azure is due to the security and infrastructure differences between on-premises and cloud environments.
The OAuth authorization code grant flow requires a publicly accessible endpoint for the authorization server and relies on external identity providers, which might not be feasible for on-premises applications. This is why the on-premises SCIM app in Azure uses Bearer Authentication instead OAuth authentication methods. The bearer token, issued by the Entra ID provisioning service, is included in the header of each request to authenticate the request. The bearer token is issued by the Entra ID provisioning service and is used to authenticate the requests sent to the on-premises application.
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Akhilesh.
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