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AWS Directory Service vs Microsoft Entra External ID comparison

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Comparison Buyer's Guide

Executive SummaryUpdated on Dec 2, 2024

Review summaries and opinions

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Categories and Ranking

AWS Directory Service
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
19th
Average Rating
8.6
Reviews Sentiment
7.1
Number of Reviews
16
Ranking in other categories
No ranking in other categories
Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
9th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (14th)
 

Mindshare comparison

As of November 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of AWS Directory Service is 1.0%, down from 1.3% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.6%, down from 2.5% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Mindshare Distribution
ProductMindshare (%)
Microsoft Entra External ID1.6%
AWS Directory Service1.0%
Other97.4%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

Akram Zaki - PeerSpot reviewer
IT Specialist at FlairsTech
Hybrid directory service has streamlined global server access and supported reliable daily operations
Some features in AWS Directory Service are not automated and are not scriptable, so they require manual work. In today's world where everything is pretty much automated and scriptable using AI, this is a downside. The price is another concern. AWS is really expensive. They provide an awesome service in general, but it's still expensive, very expensive. AD Connector is an application which connects my own Active Directory to AWS Directory Service or AWS infrastructure. There is a bit of latency which is bound by the AD Connector availability. If the AD Connector is having issues, there is a bit of latency, but in general, it's way better than Microsoft Azure. Still, it could be better. The migration was a bit challenging and required intensive planning and migration time. That is always a hassle. No matter which cloud environment you're moving into, the migration is sensitive because you're generally moving from on-premise to a cloud environment, so there is downtime and there are unexpected issues and errors. It needs very careful planning before doing the migration itself. AWS Directory Service is lacking a few things which could be better. Single sign-on federation is missing. SCIM provisioning is not available. In my company, we use other services for SSO federation, SCIM provisioning, and authentication because of these gaps. I would like AWS Directory Service to enroll a multi-factor authentication method. I would like to have an SSO federation where users, if we're hosting applications in AWS, would not need to log in to each application. Single sign-on would log in the user to their account and from there they can open all their applications without requiring a login each time. One of the other cons in AWS is that directories cannot span multiple regions because it's a region-bound architecture. This requires several directories for multi-region deployment. This is the case on my end because my company has several branches all over the world, so it requires several deployments.
Sameh Andrawes - PeerSpot reviewer
IT Manager at Alex Apparels
Identity platform has strengthened policy control, security monitoring, and user management
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything that I consider a problem or disadvantage. If we apply more features, let's say we applied mobile device management for a few machines, a few mobiles, and some computers, and it worked, but I do not know what will happen when we apply this to the rest of the network, which is 1,500 computers and more than 2,000 mobiles. I do not know what to say regarding new features that could be added to Microsoft Entra External ID. Perhaps we can integrate this with our ERP systems for the HR systems that we are going to have. Perhaps with this integration, we can find this application more practical.

Quotes from Members

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Pros

"It's a pretty good solution in terms of performance with good availability and minimal downtime."
"Two-step authentication is very useful and important."
"We can provide specific access to people based on what they need from our accounts."
"The most valuable feature of AWS Directory Service is cost-cutting features."
"Technical support is very knowledgeable and responds very quickly."
"Provides good performance and availability."
"The solution integrates well with other tools, particularly through single sign-on, allowing users to connect to various applications using just one password, including email."
"I like the manageability, as Activate Connect makes it easier to assign information and to manage the resources in the network."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"For policy management in my organization, I would say it is perfect."
"It's quite easy to manage and monitor."
"The most beneficial feature for us is the ease of setup. With about five clicks, we can generate unique IDs and keys and set up in less than 30 minutes. We can also generate these for multiple years simultaneously, which is convenient."
"It's similar to using a Microsoft account to create accounts on other websites. We are also using Microsoft Entra to monitor which applications our guests are using. This allows us to filter, block, or adjust permissions for these applications as needed for our collaborators."
"The times that I have gone into it, I found it easy to use and I haven't had any issues with it."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"Microsoft Entra External ID offers numerous advantages; there's no need to maintain anything on-premises, which results in a significant IT infrastructure cost saving."
 

Cons

"I would like to see better integration with other business solutions."
"The solution lacks certain features."
"I would like to grant partial access to a table contained in a database without having to provide full access to the whole database."
"Currently, there is no option to integrate our on-premises Cisco AWS Directory Service, requiring some manual configuration. If AWS Active Directory Service provided additional domain controller functionalities, like other on-premises Active Directory, it would be very helpful."
"The group policy can be improved."
"AWS is really expensive. They provide an awesome service in general, but it's still expensive, very expensive."
"Some of the security protocols are difficult to understand."
"I'd like to see some additional features, similar to what Azure has."
"The quality of Microsoft customer support varies. With an enterprise contract, good resources are usually provided, especially in regions like Saudi Arabia or UAE. However, we have faced challenges with support quality, especially in some subcontinent areas where the resources might not be as experienced."
"Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory."
"I would like to see faster synchronization."
"The authentication methods available are very limited, and this presents a weak point."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"As of latest, when it comes to my experience, I am not satisfied."
 

Pricing and Cost Advice

"The pricing depends because with AWS there are two types of directory objects: 30,000 and 500,000. It varies. AWS provides the pricing calculators so we can get an estimate from there as per the company requirement of how many users and objects that we need to create. So we can go to that portal, put in the data, and get the quotation. There are no extra licensing fees. It's all included."
"The pricing is reasonable."
"We pay an annual subscription fee."
"AWS' pricing is fair, and costs can be cut if you look carefully at when you're using it."
"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
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Top Industries

By visitors reading reviews
Manufacturing Company
11%
Computer Software Company
10%
Performing Arts
9%
Government
8%
Financial Services Firm
13%
Manufacturing Company
11%
Outsourcing Company
10%
Computer Software Company
9%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business6
Midsize Enterprise3
Large Enterprise5
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What is your experience regarding pricing and costs for AWS Directory Service?
The pricing is very good because it is low and there is no management cost. You do not need to hire any system administrator to manage your Active Directory.
What needs improvement with AWS Directory Service?
Some features in AWS Directory Service are not automated and are not scriptable, so they require manual work. In today's world where everything is pretty much automated and scriptable using AI, thi...
What advice do you have for others considering AWS Directory Service?
I would like AWS Directory Service to enroll a multi-factor authentication method. I would like to have an SSO federation where users, if we're hosting applications in AWS, would not need to log in...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
Microsoft is flexible in the pricing for the product, so I cannot say that it is expensive, but definitely they are flexible in the price lists and their ways of doing payments.
What needs improvement with Microsoft Entra External ID?
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything...
What is your primary use case for Microsoft Entra External ID?
When I say identity, I mean Microsoft Entra External ID. We have been using Microsoft Entra External ID since the beginning of 2022. I am using it as a client. The purposes for using Microsoft Entr...
 

Also Known As

AWS Managed Microsoft AD
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Expedia, Intuit, Royal Dutch Shell, Brooks Brothers
Information Not Available
Find out what your peers are saying about AWS Directory Service vs. Microsoft Entra External ID and other solutions. Updated: September 2026.
920,929 professionals have used our research since 2012.