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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:
 

Categories and Ranking

Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
13th
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.7
Number of Reviews
8
Ranking in other categories
Customer Identity and Access Management (CIAM) (7th)
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
7.1
Number of Reviews
219
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (1st), Access Management (1st)
 

Mindshare comparison

As of April 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.7%, up from 1.0% compared to the previous year. The mindshare of Microsoft Entra ID is 28.4%, down from 29.0% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

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.
Aaron Liang - PeerSpot reviewer
Has significantly improved secure access to applications and resources in our environment
Microsoft Entra ID has helped by simplifying our management of permissions for APIs. We are not directly exposing credentials, as we use tokens instead. It has made management easier and more secure, especially in a multi-user environment. The implementation of Microsoft Entra ID significantly improved secure access to applications and resources in our environment, primarily through the widespread use of single-sign-on. Managing API permissions became much easier, as application registration often involves calling an API to utilize services without directly exposing credentials, relying instead on token-based authentication. This streamlined approach benefits end-users by simplifying access while remaining transparent to them. Ultimately, my role focuses on ensuring a smooth and user-friendly experience, even if the underlying technology remains unseen by the end-users. Our company strongly emphasizes passwordless authentication, primarily through device-bound passkeys in Microsoft Authenticator. While administrators with high-privileged accounts utilize YubiKeys and passwords for tasks like accessing Microsoft Graph, we are actively transitioning all other users towards passwordless methods such as Windows Hello biometrics. This approach streamlines authentication and enhances security. Though initial deployment in 2022 presented challenges due to hardware limitations and the lingering effects of the COVID-19 pandemic, the technology has significantly improved and provides a simple and effective user experience.

Quotes from Members

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

Pros

"The most valuable feature for me is the firewall capabilities."
"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."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"It's quite easy to manage and monitor."
"The most valuable feature for me is the firewall capabilities."
"The single sign-on access is the most useful feature we use."
"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."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"I would rate Microsoft Entra ID 10 out of 10."
"Azure AD has features that have helped improve our security posture."
"The valuable features I use daily are enterprise application, conditional access, identity governance, password monitoring, and a password reset."
"We have a complex scenario with several applications, and we're trying to achieve SSO for most of our applications, but some of our legacy applications don't support SSO or modern protocols. Our core applications are ready for SSO or to be federated. We've centralized our authentication process using Entra ID, so we can collect sign-offs from the users and filter using conditional access."
"Multi-factor authentication is one of the most important features of my work. Verified ID is another feature that is becoming significant."
"If you want to replicate a website at the frontend in Azure, it's very easy to do it globally."
"What I like is that I can go anywhere, at any time, and to any client premise, and I can simply log in to the admin panel and can serve any of my clients."
"We have not had any formal issues with scalability."
 

Cons

"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"The cost is very high."
"The quality of Microsoft customer support varies. With an enterprise contract, good resources are usually provided, especially in regions like Saudi Arabia or UAE. However, we have faced challenges with support quality, especially in some subcontinent areas where the resources might not be as experienced."
"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."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"Technical support needs improvement."
"The most challenging aspect I found was the creation of organizational units and specific domains. They have a tool called Bastion, which is expensive and a little bit confusing."
"The visibility in the GUI is not good for management. There are a lot of improvements that could make it better. It should be more user-friendly overall. It is not user-friendly because everything keeps changing on the platform. I can understand it because I know the platform, am familiar with it, and use it every day. However, for a lot of clients, they don't use it every day or are not familiar with it, so it should be more user friendly."
"There is a lot of room for improvement in terms of its integration with the local Active Directory. There are some gaps in terms of the local Active Directory through which Microsoft is syncing our environment from our data center. There should be the availability of custom attributes on Azure Active Directory. In addition, there should be the availability of security groups and distribution groups that are residing on the local Active Directory. Currently, they are not replicated on Azure Active Directory by default."
"We have a custom solution now running to tie all those Azure ADs together. We use the B2B functionality for that. Improvements are already on the roadmap for Azure AD in that area. I think they will make it easier to work together between two different tenants in Azure AD, because normally one tenant is a security boundary. For example, company one has a tenant and company two has a tenant, and then you can do B2B collaboration between those, but it is still quite limited. For our use case, it is enough currently. However, if we want to extend the collaboration even further, then we need an easier way to collaborate between two tenants, but I think that is already on the roadmap of Azure AD anyway."
"We previously used Microsoft's technical support, which was excellent; they were very responsive. Now, we use a CSP, and their support is lacking, so I rate them five out of ten."
"My problem with Azure AD is that it's designed for medium to large systems, and we're not that large."
"The licensing cost is a bit prohibitive."
"Microsoft should work on enhancing its machine-learning algorithm to prevent unnecessary lockouts of users."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"The solution was fairly priced the last time I checked the costs."
"The product's price is in the midrange."
"MFA and P2 licenses for two Azures for fully-enabled scenarios and features cost a lot of money. This is where Okta is trying to get the prices down."
"The licensing cost is a bit prohibitive."
"We don't really have a choice. It's the one shop in town. If you want this, you have to pay for it."
"There are add-on components and services, such as identity services, that we have to add to our Azure subscription. Only then can I actually say it's on par with the on-prem server edition. Why should I pay for a component? It should be included in my subscription."
"The pricing for Azure Active Directory is affordable; I would rate the cost a six out of ten."
"Its price is okay. It is easy to go from P1 to P2 license. It is not exactly a bargain, but I would recommend the P2 license."
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Top Industries

By visitors reading reviews
Computer Software Company
16%
Financial Services Firm
11%
Manufacturing Company
11%
Healthcare Company
7%
Educational Organization
33%
Computer Software Company
10%
Financial Services Firm
8%
Manufacturing Company
6%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

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...
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 do you like most about Azure Active Directory?
It is very simple. The Active Directory functions are very easy for us. Its integration with anything is very easy. We can easily do third-party multifactor authentication.
What is your experience regarding pricing and costs for Azure Active Directory?
Microsoft Entra ID is reportedly quite expensive for each user regarding security features. The renewal cost is particularly high according to the teams managing purchases.
 

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: February 2025.
845,406 professionals have used our research since 2012.