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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
7.1
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 (18th)
 

Mindshare comparison

As of January 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of AWS Directory Service is 1.2%, down from 1.9% compared to the previous year. The mindshare of Microsoft Entra External ID is 2.2%, up from 1.9% 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 ID2.2%
AWS Directory Service1.2%
Other96.6%
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.
FS
Consultant at Artifield
Offers strong identity unification but needs better customization
Microsoft Entra External ID can be improved with additional features, specifically customizable flexibility and a customizable user interface for the login dialog. Currently, the login dialog has very limited customization options, which only include font styles, colors, text messages, or brand icons. Last month, Entra ID introduced some customizable features in their login dialog, but this does not apply to Microsoft Entra External ID, indicating a significant gap between the two. In theory, Entra External ID can support many external identity providers where custom login dialogs could be integrated, potentially via SSO feature coordination, although I have not yet confirmed this. Hence, enhanced customizable login options and the ability to use attribute password logins are critical features that are required for Microsoft Entra External ID to gain dominance in the authentication market.

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."
"What we appreciate most about AWS Directory Service is the high availability."
"I like the manageability. Activate Connect makes it easier to assign information and to manage the resources in the network."
"We can provide specific access to people based on what they need from our accounts."
"The pricing is very good because it is low and there is no management cost."
"The support is very good. I would rate the technical support as a nine out of ten."
"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."
"Provides good performance and availability."
"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."
"The most valuable feature for me is the firewall capabilities."
"Microsoft Entra External ID is more secure, offering a secure environment."
"The most valuable feature for me is the firewall capabilities."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The best features of Microsoft Entra External ID include its unification of B2C functionality and B2E features."
"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."
 

Cons

"AWS is really expensive. They provide an awesome service in general, but it's still expensive, very expensive."
"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."
"The solution lacks certain features."
"Accessing the data needs improvement."
"Some of the security protocols are difficult to understand."
"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."
"Can be improved by including on-premises access for services through Identity Access Management."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory."
"A common concern among the customers I visit is the unpredictability of Microsoft's costs at every renewal. This is really bothersome for the customer, and I would say it is the worst element I have seen in these years."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"The support engineers are not as skilled as our engineers. When they say something would not work, or there is no solution, we usually hear that Microsoft would not support this."
"Technical support needs improvement."
"I would like to see faster synchronization."
 

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."
"We pay an annual subscription fee."
"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 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
Computer Software Company
13%
Performing Arts
11%
Government
10%
Manufacturing Company
8%
Computer Software Company
14%
Financial Services Firm
12%
Manufacturing Company
9%
Government
8%
 

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?
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 advice do you have for others considering AWS Directory Service?
I would rate AWS Directory Service nine out of ten. Users need to be aware of how the system works locally to adapt easily to the integration and setup.
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: December 2025.
881,082 professionals have used our research since 2012.