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Microsoft Entra External ID vs Microsoft Entra 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:
 

ROI

Sentiment score
4.0
Organizations saved time and costs with Microsoft Entra External ID, despite varied productivity impacts and integration learning curves.
Sentiment score
7.3
Organizations achieve significant ROI with Microsoft Entra ID through cost reduction, security improvement, and productivity enhancement.
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
We leverage existing licensing, like Windows Server or SQL, and hybrid benefits, and our sales and marketing teams benefit from co-selling and partnership advantages.
Cloud Engineer at Med Tech Solutions
We get a return from not needing to pay other vendors to do what we already had from Microsoft, which was better than the competition.
Lead Architect, Chief Technology Officer Office at a tech services company with 51-200 employees
By eliminating the need for multiple VPN channels and enabling direct work from Azure servers, we have achieved approximately 30% efficiency savings.
Infrastructure Specialist at Renova AB
 

Customer Service

Sentiment score
4.9
Microsoft Entra External ID support experiences are mixed, with praise for knowledgeable staff but concerns about continuity and accessibility.
Sentiment score
6.3
Users experience varying customer service with Microsoft Entra ID, praising expertise but suggesting improvements for quicker and efficient support.
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
The actual support when you get to that level is a ten out of ten.
Senior Consultant at Convergeone
There are immediate answers to any issues that arise with great knowledge and a deep understanding of the product and business needs.
Lead Architect, Chief Technology Officer Office at a tech services company with 51-200 employees
They usually try to deflect, buy time, and often do not address the problem immediately.
Security Engineer at a tech vendor with 10,001+ employees
 

Scalability Issues

Sentiment score
6.2
Microsoft Entra External ID offers scalability and flexibility but faces latency issues and lacks some authentication methods.
Sentiment score
7.7
Microsoft Entra ID offers scalable identity management, efficiently supporting growth and integration with third-party applications and on-premises systems.
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
Microsoft Entra ID meets our needs better, especially when discussing integration.
Microsoft 365 Security & Compliance Practice Lead at Invoke
Integrating seamlessly with Microsoft services like Microsoft 365, Azure, and other Microsoft platforms, while also supporting integration with thousands of third-party applications such as Salesforce, ServiceNow, and Google Workspace using standards including SAML, OAuth, and OpenID Connect.
Technical Support Engineer at Digitaltrack
We experienced no scalability issues with Microsoft Entra ID.
Technical architect at a computer software company with 10,001+ employees
 

Stability Issues

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.
Sentiment score
7.8
Microsoft Entra ID is highly stable with 99.9% uptime, overcoming minor issues with transparency and swift updates.
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
It's a critical solution that we can't do without.
Cloud Principal & Infrastructure Specialist at a financial services firm with 1,001-5,000 employees
I haven't experienced any downtime, crashes, or performance issues with Microsoft Entra ID.
Director, Modern Workplace at a legal firm with 1,001-5,000 employees
I have not experienced any downtime, crashes, or performance issues with Microsoft Entra ID.
Director Security at a aerospace/defense firm with 10,001+ employees
 

Room For Improvement

Microsoft Entra External ID needs cost reduction, faster sync, better security, improved SSO, UI, integration, support, and pricing clarity.
Microsoft Entra ID requires improvements in integration, scalability, documentation, and user interface to enhance usability and access control management.
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
A recent incident we dealt with took four months to resolve with a seven-day deadline, which was quite frustrating.
Cloud Principal & Infrastructure Specialist at a financial services firm with 1,001-5,000 employees
Synchronization issues occasionally occur, making it challenging to analyze logs and pinpoint the exact problem.
Senior Nutrition Officer at a manufacturing company with 10,001+ employees
There is a need for better transformation support from on-premises Active Directory policies to the cloud, as Entra ID doesn't cover this sufficiently yet.
Sales Representative at a comms service provider with 10,001+ employees
 

Setup Cost

Microsoft Entra External ID pricing varies, cost-effective for some, expensive for others, challenging cloud transition impacts evaluation.
Microsoft Entra ID is cost-effective for Microsoft users, but complex licensing and hidden costs present challenges.
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
We are getting our money's worth.
Cloud Architect at Palmer College of Chiropractic-Davenport
Microsoft sets pricing based on customer demand, adjusting to find the optimal balance between sales volume and profit per unit, similar to how Costco manages product prices.
Owner at Alopex ONE UG
Most features of Entra ID are part of Microsoft's ecosystem and included in Microsoft 365 bundles, which means there are no additional costs associated with pricing and licensing.
Senior Consultant at Convergeone
 

Valuable Features

Microsoft Entra External ID enhances security and efficiency by simplifying identity management and integration without on-premises infrastructure.
Microsoft Entra ID excels in security, user management, and integration, enhancing organizational security and efficiency with comprehensive features.
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
We can secure the applications that we are building and make sure that if the application were to be compromised, there is no full access to a customer's environment causing issues and other security concerns.
Senior Consultant at Convergeone
It's integrated with Microsoft technologies like Authenticator, SSO, and MFA, streamlining operations and creating a seamless environment.
Vice President, Sales & Cloud at Aztek
The granular control, such as preventing logins from specific locations, enhances security significantly.
Cloud Architect at Palmer College of Chiropractic-Davenport
 

Categories and Ranking

Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
10th
Ranking in Microsoft Security Suite
16th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (5th)
Microsoft Entra ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
1st
Ranking in Microsoft Security Suite
2nd
Average Rating
8.6
Reviews Sentiment
7.0
Number of Reviews
276
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (2nd), Access Management (1st)
 

Mindshare comparison

As of May 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.9%, down from 2.3% compared to the previous year. The mindshare of Microsoft Entra ID is 16.1%, down from 28.4% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Mindshare Distribution
ProductMindshare (%)
Microsoft Entra ID16.1%
Microsoft Entra External ID1.9%
Other82.0%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

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.
Stafin Jacob - PeerSpot reviewer
Microsoft 365 Security & Compliance Practice Lead at Invoke
Identity has become our central gatekeeper and has provided secure single sign-on for all users
Microsoft Entra ID can improve by focusing more on new passwordless methods and becoming a primary adopter. One feature we would like to see is the ability to have security questions for password resets. I know the current capability is phasing out, so we do not have an alternative method yet. Customers who already use security questions require a smoother transition for that capability to be available. My experience with the deployment has had some challenges, particularly around the Microsoft MFA campaigns. The hardest part is moving users from a different MFA provider to the Microsoft MFA provider, as it ultimately depends on user activity. In large enterprises with numerous users across various geographies, this transition takes time. If there are ways to exert more control around that process, it would improve the situation.
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Top Industries

By visitors reading reviews
Financial Services Firm
15%
Computer Software Company
11%
Manufacturing Company
9%
Government
7%
Financial Services Firm
12%
Manufacturing Company
8%
Government
8%
Computer Software Company
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
By reviewers
Company SizeCount
Small Business90
Midsize Enterprise40
Large Enterprise160
 

Questions from the Community

What is your experience regarding pricing and costs for Microsoft Entra External ID?
Microsoft is flexible in the pricing for the product, so I cannot say that it is expensive, but definitely they are flexible in the price lists and their ways of doing payments.
What needs improvement with Microsoft Entra External ID?
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything...
What is your primary use case for Microsoft Entra External ID?
When I say identity, I mean Microsoft Entra External ID. We have been using Microsoft Entra External ID since the beginning of 2022. I am using it as a client. The purposes for using Microsoft Entr...
How does Duo Security compare with Microsoft Authenticator?
We switched to Duo Security for identity verification. We’d been using a competitor but got the chance to evaluate Duo for 30 days, and we could not be happier. Duo Security is easy to configure a...
What is your experience regarding pricing and costs for Azure Active Directory?
My experience with pricing, setup cost, and licensing is that going through and being able to use these things is always part of delivering an M365 bundle, so I don't think the experience is great ...
What needs improvement with Azure Active Directory?
Microsoft Entra ID can be improved by open-sourcing it. You already have Windows Subsystem for Linux, which is open-source Linux in Microsoft. One major shift for Microsoft would be using the commo...
 

Also Known As

Azure Active Directory External Identities
Azure AD, Azure Active Directory, Azure Active Directory, Microsoft Authenticator
 

Interactive Demo

Demo not available
 

Overview

 

Sample Customers

Information Not Available
Microsoft Entre ID is trusted by companies of all sizes and industries including Walmart, Zscaler, Uniper, Amtrak, monday.com, and more.
Find out what your peers are saying about Microsoft Entra External ID vs. Microsoft Entra ID and other solutions. Updated: April 2026.
893,244 professionals have used our research since 2012.