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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

"AWS has eliminated the downtime we waste when our on-premises resources go down."
"Provides good performance and availability."
"The most valuable feature is ease of use."
"What we appreciate most about AWS Directory Service is the high availability."
"We can provide specific access to people based on what they need from our accounts."
"AWS Directory Service is secure."
"The AD Connector is very good and easy to implement."
"The most valuable feature of AWS Directory Service is cost-cutting features."
"It's quite easy to manage and monitor."
"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."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"I have not encountered any stability issues with Microsoft Entra External ID."
"The best features of Microsoft Entra External ID include its unification of B2C functionality and B2E features."
"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."
 

Cons

"To get CloudWatch to monitor your memory and storage, you have to do some configuration within your server, which sometimes results in errors."
"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."
"AWS is really expensive. They provide an awesome service in general, but it's still expensive, very expensive."
"Currently, there is no option to integrate our on-premises Cisco AWS Directory Service, requiring some manual configuration."
"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."
"The group policy can be improved."
"AWS Directory Service needs to improve processing."
"Technical support needs improvement."
"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."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"The cost is very high."
"The authentication methods available are very limited, and this presents a weak point."
"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."
"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."
"I generally find Microsoft solutions expensive, especially in specific offerings."
 

Pricing and Cost Advice

"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."
"The pricing is reasonable."
"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
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.