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
6.7
Microsoft Defender for Identity effectively prevents incidents, reduces administration time, is cost-effective, and helps satisfy client needs, despite mixed returns.
Sentiment score
5.9
Organizations saved time and costs with Microsoft Entra External ID, despite higher operational costs and less monetary gain.
It has led to cost savings as well as time savings because I can use a single solution for all applications.
Companies can leverage it for setting up external identities without needing to develop their own solutions.
 

Customer Service

Sentiment score
8.4
Microsoft Defender for Identity's support is effective yet inconsistent, with delays and variable service quality across subscription tiers.
Sentiment score
5.6
Microsoft Entra External ID customer service varies, with slow response, staff changes, and better resource access via enterprise contracts.
Generally, the support is more effective than other providers like Oracle.
The quality of support is very good, but troubleshooting can take time due to complex setups and the need to provide many logs.
The support for business applications, infrastructure support, and Entra has been mostly positive with highly skilled technicians.
The documentation is very thorough, reducing the need for support.
With an enterprise contract, good resources are usually provided, especially in regions like Saudi Arabia or UAE.
 

Scalability Issues

Sentiment score
8.8
Microsoft Defender for Identity is scalable and adaptable, supporting diverse enterprises and seamlessly integrating within Microsoft infrastructures.
Sentiment score
8.0
Microsoft Entra External ID is scalable, supports large enterprises well, but may experience latency issues with cloud workloads.
In a Microsoft-centric organization, especially with Azure infrastructure and Office 365, Microsoft Defender for Identity is scalable.
End-user workloads experience increased latency in a cloud environment compared to on-premises resources.
Microsoft Entra External ID is quite scalable, and I would rate its scalability between eight and nine out of ten.
 

Stability Issues

Sentiment score
7.9
Microsoft Defender for Identity is highly stable, credited to Azure's infrastructure, despite occasional regional incidents and initial issues.
Sentiment score
8.2
Microsoft Entra External ID is highly rated for stability, with minor issues often due to external factors, ensuring reliability.
Microsoft Defender for Identity is quite robust and built on Azure hyperscale infrastructure, with a 99% availability.
The stability of this solution is very good.
I have not encountered any stability issues with Microsoft Entra External ID.
Unless such major incidents occur, it is stable and reliable.
 

Room For Improvement

Microsoft Defender for Identity requires enhancements in cloud security, SIEM integration, and user access controls, facing various operational challenges.
Microsoft Entra External ID struggles with high costs, slow synchronization, and complex pricing, affecting integration, alerts, and security.
One improvement I would recommend is the integration of an admin application within Teams, allowing easy access to attack information on a mobile platform.
Reducing false positives is something we've been working on with Microsoft.
There is room for improvement in delivering knowledge to technical users, especially regarding what we can gain from the solution and how to apply it.
This is particularly challenging during enterprise agreement renewals, as it's difficult for customers to review costs leading to lengthy negotiations.
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.
More stability in the platform, fewer changes to authentication mechanisms, and increased integration across platforms to improve usability and security infrastructure are needed.
 

Setup Cost

Microsoft Defender for Identity, integrated with Microsoft 365 E5, is competitively priced, offering value for Azure and Office 365 users.
Microsoft Entra External ID becomes costly at scale due to complex pricing and additional integration expenses, despite scalable options.
Ensuring a fair price according to market standards.
From an organization perspective, using E5 licenses is value for money, especially if Azure and Office 365 are already in use.
the Microsoft Defender Suite is quite expensive, especially when integrated into Sentinel.
Regarding pricing, the cost seems high for single sign-on, especially for external applications like Oracle.
Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options.
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.
 

Valuable Features

Microsoft Defender for Identity excels in threat detection, offers customization, and enhances security across environments with synced capabilities and automation.
Microsoft Entra External ID enhances access management with easy setup, strong security, federated identities, and seamless integration capabilities for widespread adoption.
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.
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.
The most valuable features of Microsoft Defender for Identity include its automatic remedies, possibilities for avoiding incidents, the privilege manager, and the generation of logs that facilitate a safer environment.
It is crucial for hybrid environments, especially for integrating existing on-site infrastructures with cloud-based Active Directory, such as in Office 365 implementations.
Microsoft's reliability in providing a clear roadmap for the solution is very important, especially at a time when cybersecurity is a risk in every company.
The most valuable feature for me is the firewall capabilities.
 

Categories and Ranking

Microsoft Defender for Iden...
Ranking in Microsoft Security Suite
7th
Average Rating
8.8
Reviews Sentiment
7.4
Number of Reviews
21
Ranking in other categories
Advanced Threat Protection (ATP) (5th), Identity Threat Detection and Response (ITDR) (1st)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.6
Number of Reviews
9
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (13th), Customer Identity and Access Management (CIAM) (7th)
 

Mindshare comparison

As of May 2025, in the Microsoft Security Suite category, the mindshare of Microsoft Defender for Identity is 6.9%, up from 6.2% compared to the previous year. The mindshare of Microsoft Entra External ID is 0.7%, up from 0.3% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite
 

Featured Reviews

Sachin Vinay - PeerSpot reviewer
Easily detects advanced attacks based on user behavior
The best feature is security monitoring, which detects and investigates suspicious user activities. It can easily detect advanced attacks based on the behavior. The credentials are securely stored, so it reduces the risk of compromise. It will monitor user behavior based on artificial intelligence to protect the identities in your organization. It will even help secure the on-premise Active Directory. It syncs from the cloud to on-premise, and on-premise modifications will be reflected in the cloud. Identity harvesting is the most common threat. Legacy Microsoft solutions and Amazon face the same issues in the cloud. Users don't implement other security mechanisms in the cloud. In an on-premise environment, we would have multiple security devices like firewalls and several layers of security. Cloud users are less bothered because cloud features are there and only need to be configured. Microsoft Defender for Cloud is the best solution because all threats are completely visible, and it has a great dashboard. The dashboard displays each threat and score, so we can identify the threat rating and act efficiently to avoid compromising user identities. We have a single sign-on feature on the cloud. If we lose a single set of identities, it can compromise the entire organization, including cloud and on-premise. The same identities are being used everywhere. The user activity has to be completely visible on the dashboard, and it has to generate a pattern. It will notify us if there is any security breach. It is a complete monitoring set. Minor changes in the user identity can lead to data leakage. If a password is changed in the cloud, it will be reflected automatically in the on-premise. This minor change will trigger an alert in Microsoft Defender for Identity. It ensures that each cloud identity is well protected from spoofing. It has a comprehensive database of well-known spoofing techniques, enabling us to provide cloud identity protection completely. It has a vast scope because it is completely single sign-on. In the emerging industry, we use single sign-on because users need to authenticate, but it's challenging to remember multiple passwords. Once your user signs in, you can access all the data. An identity compromise would lead to various issues and affect the data on-premises. Defender maintains a constantly updated database with the latest signatures, attack models, and threats. If it detects one threat, it will monitor the suspicious event and give us frequent alerts. Identity protection is vital because we use an identity mechanism for everything, including firewall-related activities. The exact identity used in the cloud is used in the most complex firewalls. We require an excellent migration technique to regain this user credential if something gets compromised. Blocking this requires a massive set of procedures. Microsoft Defender comprehensively monitors identity and provides frequent alerts regarding any issue, so we don't need to think of anything else. Defender's bidirectional sync capabilities are helpful because we need to sync data from multiple directions, including tenant-to-tenant, on-premise-to-cloud, and cloud-to-cloud syncing. As a university, we have multiple tenants, so we need to sync or access data across platforms. That way, everything is more secure, and Microsoft Defender for Cloud also provides ample security for cloud transfers. The bidirectional sync capabilities are flawless—10 out of 10. Our on-premise Active Directory is perfectly synced with the Azure AD. Everything is synced with on-premise, and changes are reflected in minutes. If a problem with identity is addressed on the cloud, the fix will be mirrored on-premise and vice versa. Microsoft Defender for Cloud and Identity are bundled. If we have these two solutions, we don't need to worry about anything else or third-party antivirus. Microsoft Defender for Identity acts as a link to all the Microsoft security features that require identity-based validation. Microsoft Defender instantly provides identity security for all our applications, and users need not worry about typing their passwords. Even in situations with less complex encryption mechanisms, users don't need to worry about typing in their passwords. Defender will check and monitor if there are any flaws in that, and it will let us know if there are any issues. We're a Microsoft shop, so everything works together. If one feature isn't working, everything will be affected. If Defender isn't working, half of our Microsoft security features will be dead. Without identity security, user data can easily be compromised, and data can fall into the hands of intruders or other hackers. The solutions have to complement each other. If anything got wrong, the entire setup would have flaws. Microsoft security has a legacy security mechanism. A while back, we might have gone with Defender for Endpoint, but Microsoft has also grown into the face of the cloud. The same Defender solution is completely maintaining cloud security. We can imagine Microsoft's vast scale and how Defender can protect the cloud environment from vulnerabilities and attacks. We are definitely delighted with Microsoft products. The dashboard features are fantastic because it provides a comprehensive overview. It has a great alert mechanism and log inspector that tracks when users access various servers. With this kind of identity validation, we can control which servers the users can access. We have total visibility from the dashboard. We can track identity usage even if there are no issues. That is an essential advantage.
Corrado Vigano - PeerSpot reviewer
Solution integrates well with existing systems while being easy to use
The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use. Furthermore, Microsoft's reliability in providing a clear roadmap for the solution is very important, especially at a time when cybersecurity is a risk in every company. The solution is easy to reuse and not difficult to find expertise for in the market because it is widespread. It is gaining attention even from partners and from the market on the offering side. This serves as a good starting point for customers who can develop internal competence on the solution. Additionally, the presence of reliable partners who know the solution and can provide internal knowledge is the best aspect for them.
report
Use our free recommendation engine to learn which Microsoft Security Suite solutions are best for your needs.
851,604 professionals have used our research since 2012.
 

Top Industries

By visitors reading reviews
Computer Software Company
15%
Financial Services Firm
13%
Government
7%
Manufacturing Company
6%
Computer Software Company
16%
Financial Services Firm
12%
Manufacturing Company
10%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

What do you like most about Microsoft Defender for Identity?
Microsoft Defender for Identity provides excellent visibility into threats by leveraging real-time analytics and data intelligence.
What needs improvement with Microsoft Defender for Identity?
There is room for improvement in delivering knowledge to technical users, especially regarding what we can gain from the solution and how to apply it. The documentation provided by Microsoft is oft...
What is your primary use case for Microsoft Defender for Identity?
The primary use case for Microsoft Defender for Identity is to maintain control and privilege inside our organization and revoke rights when they are not needed. The solution is used to keep our or...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
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.
What needs improvement with Microsoft Entra External ID?
Some areas where Microsoft Entra External ID could improve include cost and enhanced security for integration with federated logins like LinkedIn and Gmail.
What is your primary use case for Microsoft Entra External ID?
I am working on a project for a university where we are trying to create a digital twin of a coral reef restoration project in Saudi Arabia. This involves using a big data platform and developing a...
 

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: April 2025.
851,604 professionals have used our research since 2012.