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

Microsoft Defender for Identity vs Microsoft Entra External ID comparison

 

Comparison Buyer's Guide

Executive Summary

Review summaries and opinions

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

ROI

Sentiment score
4.4
Microsoft Defender for Identity is cost-effective and efficient, offering incident prevention and resolution without complex hardware setups.
Sentiment score
4.0
Organizations saved time and costs with Microsoft Entra External ID, despite varied productivity impacts and integration learning curves.
It has led to cost savings as well as time savings because I can use a single solution for all applications.
Associate Director Automation at Dubai Holding
Companies can leverage it for setting up external identities without needing to develop their own solutions.
Lead Enterprise Architect at DigyCorp
In terms of return on investment, prior to using this product, our company managed our own mail server with all internal authentication happening on premises, resulting in a ROI in the thousands every year.
Network Security Administrator at a retailer with 51-200 employees
 

Customer Service

Sentiment score
6.9
Opinions on Microsoft Defender for Identity support vary, highlighting responsiveness, but issues include delays, contact challenges, and false positives.
Sentiment score
4.9
Microsoft Entra External ID support experiences are mixed, with praise for knowledgeable staff but concerns about continuity and accessibility.
Generally, the support is more effective than other providers like Oracle.
Owner at Alopex ONE UG
The quality of support is very good, but troubleshooting can take time due to complex setups and the need to provide many logs.
Cloud Security & Governance at a financial services firm with 10,001+ employees
The people I normally use for support are very knowledgeable, especially when they help remote in and get to where I need to go and show me much faster and help me understand what I should be doing.
Technology Coordinator at a educational organization with 501-1,000 employees
Companies without a Microsoft license for Entra ID or Azure portal cannot add Azure AD B2C, creating logistical issues for some of my clients who are unable to evaluate the platform.
Consultant at Artifield
The support for business applications, infrastructure support, and Entra has been mostly positive with highly skilled technicians.
Sales Manager - Program Manger at Altitudo srl
The documentation is very thorough, reducing the need for support.
Cloud Security Consultant at a manufacturing company with 10,001+ employees
 

Scalability Issues

Sentiment score
7.2
Microsoft Defender for Identity efficiently integrates and scales globally, supporting diverse organizational needs within Microsoft’s ecosystem effectively.
Sentiment score
6.2
Microsoft Entra External ID offers scalability and flexibility but faces latency issues and lacks some authentication methods.
In a Microsoft-centric organization, especially with Azure infrastructure and Office 365, Microsoft Defender for Identity is scalable.
Cloud Security & Governance at a financial services firm with 10,001+ employees
This is one of EID's weak points compared to Azure AD B2C, which offers customizable authentication options, including attribute and password combinations.
Consultant at Artifield
End-user workloads experience increased latency in a cloud environment compared to on-premises resources.
Director at iicon ltd
Microsoft Entra External ID is quite scalable, and I would rate its scalability between eight and nine out of ten.
Lead Enterprise Architect at DigyCorp
 

Stability Issues

Sentiment score
7.0
Microsoft Defender for Identity is highly reliable, with minimal incidents, seamless operation, and consistent ratings between seven and nine.
Sentiment score
5.2
Microsoft Entra External ID is a stable SaaS, rated 8-10/10, with minimal downtime, reliable except for occasional external issues.
Microsoft Defender for Identity is quite robust and built on Azure hyperscale infrastructure, with a 99% availability.
Cloud Security & Governance at a financial services firm with 10,001+ employees
We do not see any issues with the stability of Microsoft Defender for Identity.
Deputy Manager at Servion Global Solutions
Having recently started using it, reliability is affirmed, but manual investigation is often performed to verify if alerts identified by auto-remediation are accurate.
Instrumentation Engineer at Toyo Engineering Corp
I'd rate the stability of the Microsoft Entra External ID as a 10.
Director of Technology at a hospitality company with 51-200 employees
The stability of this solution is very good.
Associate Director Automation at Dubai Holding
I have not encountered any stability issues with Microsoft Entra External ID.
Lead Enterprise Architect at DigyCorp
 

Room For Improvement

Microsoft Defender for Identity users seek improved cloud integration, user-friendly features, better support, and streamlined processes for enhanced threat management.
Microsoft Entra External ID needs cost reduction, faster sync, better security, improved SSO, UI, integration, support, and pricing clarity.
If Microsoft could develop a feature that indicates when impossible travel is caused by VPN connections, it would prevent unnecessary password resets and session disruptions, especially for VIP users in organizations.
CyberSecurity Engineer | Information Security Management at Self Employed
One improvement I would recommend is the integration of an admin application within Teams, allowing easy access to attack information on a mobile platform.
Owner at Alopex ONE UG
Reducing false positives is something we've been working on with Microsoft.
Cloud Security & Governance at a financial services firm with 10,001+ employees
This is particularly challenging during enterprise agreement renewals, as it's difficult for customers to review costs leading to lengthy negotiations.
Sales Manager - Program Manger at Altitudo srl
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.
Consultant at Artifield
I would like to see a more detailed alert system that provides a summary of why alerts are generated, who is generating them, and the reasons behind it.
Cloud Security Consultant at a manufacturing company with 10,001+ employees
 

Setup Cost

Microsoft Defender for Identity is cost-effective with E5 licenses despite complex pricing and competitive against other security solutions.
Microsoft Entra External ID pricing varies, cost-effective for some, expensive for others, challenging cloud transition impacts evaluation.
If they can reduce the costs, organizations will be happy, and it will compensate for using the Azure environment, which is more expensive on the infrastructure as a service side.
CyberSecurity Engineer | Information Security Management at Self Employed
Ensuring a fair price according to market standards.
Owner at Alopex ONE UG
From an organization perspective, using E5 licenses is value for money, especially if Azure and Office 365 are already in use.
Cloud Security & Governance at a financial services firm with 10,001+ employees
Regarding pricing, the cost seems high for single sign-on, especially for external applications like Oracle.
Associate Director Automation at Dubai Holding
Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options.
Director at iicon ltd
The cost can be a factor for Microsoft Entra External ID, but in general, it offers a scalable and efficient solution compared to deploying individual solutions.
Lead Enterprise Architect at DigyCorp
 

Valuable Features

Microsoft Defender for Identity integrates with Azure to offer comprehensive threat detection, identity protection, and advanced real-time security insights.
Microsoft Entra External ID enhances security and efficiency by simplifying identity management and integration without on-premises infrastructure.
We receive an advance report of risky users, allowing us to take preemptive action before an attack causes damage to organization details.
Instrumentation Engineer at Toyo Engineering Corp
The most valuable feature is its hybrid artificial intelligence, which gathers forensic data to track and counteract security threats, much like the CSI series in effect.
Owner at Alopex ONE UG
The advanced threat protection is one of the strengths of Microsoft Defender for Identity, as it utilizes user and entity analytics and can detect indicative attacks.
Cloud Security & Governance at a financial services firm with 10,001+ employees
It is crucial for hybrid environments, especially for integrating existing on-site infrastructures with cloud-based Active Directory, such as in Office 365 implementations.
Director at iicon ltd
EID unifies workforce users with external business partners, which is a very strong feature.
Consultant at Artifield
The detailed monitoring and reporting in Microsoft Entra External ID support compliance efforts effectively.
Manager, Identity & Access Management at a financial services firm with 10,001+ employees
 

Categories and Ranking

Microsoft Defender for Iden...
Ranking in Microsoft Security Suite
4th
Average Rating
8.8
Reviews Sentiment
6.8
Number of Reviews
28
Ranking in other categories
Advanced Threat Protection (ATP) (8th), Identity Threat Detection and Response (ITDR) (3rd)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
18th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (9th), Customer Identity and Access Management (CIAM) (4th)
 

Mindshare comparison

As of January 2026, in the Microsoft Security Suite category, the mindshare of Microsoft Defender for Identity is 6.0%, down from 7.5% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.6%, up from 0.5% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite Market Share Distribution
ProductMarket Share (%)
Microsoft Defender for Identity6.0%
Microsoft Entra External ID1.6%
Other92.4%
Microsoft Security Suite
 

Featured Reviews

RK
Cloud Security & Governance at a financial services firm with 10,001+ employees
Protect on-premises and hybrid environments with advanced threat detection and seamless integration
Our Active Directory implementation is a hybrid one. The advanced threat protection is one of the strengths of Microsoft Defender for Identity, as it utilizes user and entity analytics and can detect indicative attacks. It identifies lateral movements, privilege escalations, and alerts on potential attacks. The tool is also used for security posture assessment. The seamless integration with other Microsoft solutions within our Microsoft-centric environment is also a major advantage.
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.
report
Use our free recommendation engine to learn which Microsoft Security Suite solutions are best for your needs.
881,082 professionals have used our research since 2012.
 

Top Industries

By visitors reading reviews
Financial Services Firm
13%
Computer Software Company
12%
Manufacturing Company
8%
Comms Service Provider
7%
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 Business8
Midsize Enterprise4
Large Enterprise14
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What needs improvement with Microsoft Defender for Identity?
I really would have to sit down to think about how Microsoft Defender for Identity can be improved. I didn't take stock in what needs to be improved because I appreciated having the tools right the...
What is your primary use case for Microsoft Defender for Identity?
My main use cases for Microsoft Defender for Identity include Conditional Access, checking risky users, remediating risky users, and user sign-ins. I can easily remediate or determine what the user...
What advice do you have for others considering Microsoft Defender for Identity?
I don't really use Microsoft Defender for Identity a lot because my new role doesn't allow me to take time to do so. I don't really use the threat intelligence feature of Microsoft Defender for Ide...
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

Azure Advanced Threat Protection, Azure ATP, MS Defender for Identity
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Microsoft Defender for Identity is trusted by companies such as St. Luke’s University Health Network, Ansell, and more.
Information Not Available
Find out what your peers are saying about Microsoft Defender for Identity vs. Microsoft Entra External ID and other solutions. Updated: December 2025.
881,082 professionals have used our research since 2012.