Install the following components on your system to connect to your Microsoft Azure subscription using PowerShell:

Microsoft Online Service Sign-in Assistant for IT Professionals RTW
Select the appropriate version of your OS

Azure Active Directory Module for Windows PowerShell (64-bit version)
The 32-bit version is discontinued by October 20, 2014.

You must be a tenant administrator (i.e. company administrator, global administrator) to successfully establish a connection to your Azure subscription using PowerShell. Read here how to assign admin roles in Azure AD.

You’re now ready to connect to your Azure subscription using PowerShell!

  • To do so, run the Microsoft Azure PowerShell console as administrator
  • Enter the following PowerShell command: 
    Add-AzureAccount
  • You are prompted to enter your Azure credentials:
  • If you have a work or school account, you can bypass the pop up windows using this command: 
    $cred = Get-Credential
Add-AzureAccount -Credential $cred
  • When connecting the first time to your Azure subscription using PowerShell you need to download, save and import your Publishing Settinge Profile. 
    Get-AzurePublishSettingsFile
  • Sign in to your Azure Management Portal
  • When prompted, download and save the publishing profile (depending on your client settings the download may start automatically)
  • Import the previously downloaded publishing profile 
    Import-AzurePublishSettingsFile "C:\Path\To\Your\AzurePublishingSettings-credentials.publishsettings"

You’re all set. Start managing your Microsoft Azure subscription using this great overview of the Azure AD cmdlets.