Try our new research platform with insights from 80,000+ expert users

AWS Directory Service vs Microsoft Entra External ID comparison

 

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)
18th
Average Rating
8.6
Reviews Sentiment
7.3
Number of Reviews
15
Ranking in other categories
No ranking in other categories
Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
8th
Average Rating
7.6
Reviews Sentiment
5.5
Number of Reviews
16
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (21st)
 

Mindshare comparison

As of October 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of AWS Directory Service is 1.6%, down from 2.0% compared to the previous year. The mindshare of Microsoft Entra External ID is 2.4%, up from 1.3% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Market Share Distribution
ProductMarket Share (%)
Microsoft Entra External ID2.4%
AWS Directory Service1.6%
Other96.0%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

Basa Saiteja - PeerSpot reviewer
A valuable access management system with a user-friendly and straightforward setup
The solution is scalable, and we can scale according to our needs. I rate the scalability a nine out of ten. In our organization, our access to our AWS comes from IAM. We use AWS consoles using our credentials and don't have route access, so each person will log in through our IAM programmatic access, and everyone on our team can work on cloud. Over 10,000 people in our organization utilize the solution.
Suresh Kumar Subramaniyan - PeerSpot reviewer
Has supported secure access but still lacks full coverage for external identity challenges
The user experience is acceptable, but Microsoft Entra External ID is not a full-fledged IGA solution. We use different products for complete Identity Governance Administration. Microsoft Entra External ID is suitable for small-scale enterprises implementing identity lifecycle management since most have Active Directory. However, there are several challenges. The out-of-the-box connector has limited features for applications, requiring us to build scheme connectors. While small-scale enterprises can benefit from Microsoft Entra External ID's Identity Governance solution, large-scale enterprises might need different tools from leading market vendors such as SailPoint or Saviynt. Customers face particular challenges with contractor and B2B accounts. Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory. There are delays in the identity lifecycle process, especially for contract partners during onboarding and off-boarding. This might be due to back-end syncing with Active Directory. B2B account removal and provisioning take considerable time. Access governance, particularly access certification for guest users, is time-consuming. Multi-factor authentication enforcement also presents challenges for external users.

Quotes from Members

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

Pros

"Two-step authentication is very useful and important."
"The support is very good. I would rate the technical support as a nine out of ten."
"AWS handles everything on the backend requiring minimal legwork from our team. We only require a dedicated database administrator while depending on Amazon for RDS."
"We like the fact that it's got such great redundancy."
"The most valuable feature of AWS Directory Service is cost-cutting features."
"The AD Connector is very good and easy to implement."
"We can provide specific access to people based on what they need from our accounts."
"Provides good performance and availability."
"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 most valuable feature for me is the firewall capabilities."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The single sign-on access is the most useful feature we use."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Microsoft Entra External ID is more secure, offering a secure environment."
 

Cons

"Some of the security protocols are difficult to understand."
"Our only complaint is that you cannot integrate your Exchange server. Or, if you are planning to install an Exchange server on your Amazon EC2 instance, then you need to configure Active Directory on EC2 instance. We would like for this limitation to be lifted."
"AWS Directory Service needs to improve processing."
"I've encountered challenges, particularly with Amazon WorkDocs, which is being deprecated. This has made it necessary to find an alternative document management solution that can handle editing, sharing, and workflow management for documents like Word files and PDFs."
"I would like to see better integration with other business solutions."
"Currently, there is no option to integrate our on-premises Cisco AWS Directory Service, requiring some manual configuration."
"The AWS Directory Service should be easier to integrate."
"I would like to grant partial access to a table contained in a database without having to provide full access to the whole database."
"There have been a couple of times when it was unavailable because of Microsoft issues, but other than that, I don't remember any problems."
"The authentication methods available are very limited, and this presents a weak point."
"The only problem that you might face with Microsoft now is their complex licensing model."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
 

Pricing and Cost Advice

"AWS' pricing is fair, and costs can be cut if you look carefully at when you're using it."
"The pricing is reasonable."
"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."
"We pay an annual subscription fee."
"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
report
Use our free recommendation engine to learn which Identity and Access Management as a Service (IDaaS) (IAMaaS) solutions are best for your needs.
868,759 professionals have used our research since 2012.
 

Top Industries

By visitors reading reviews
Computer Software Company
11%
Healthcare Company
10%
Performing Arts
10%
Manufacturing Company
8%
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
9%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business6
Midsize Enterprise3
Large Enterprise4
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What do you like most about AWS Directory Service?
The most valuable feature of AWS Directory Service is cost-cutting features.
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?
Accessing the data needs improvement. Additionally, integration and compatibility with other AWS ( /products/amazon-aws-reviews ) services, network open LDAP, support for on-premise and cloud envir...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
The only problem that you might face with Microsoft now is their complex licensing model.
What needs improvement with Microsoft Entra External ID?
For the last four or five years, I have been in an IT manager function, focusing on making things happen and having technical persons execute tasks. In the last three months, I have transitioned to...
What is your primary use case for Microsoft Entra External ID?
I am looking for a new solution and investigating existing products. We are already working with Microsoft Intune and SOTI. I have been working in the past with a Kaseya product, specifically Datto...
 

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 2025.
868,759 professionals have used our research since 2012.