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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
4.3
Users faced challenges with Microsoft Entra External ID but saved costs and time compared to traditional, on-premises solutions.
Sentiment score
7.5
Adopting Microsoft Entra ID boosted ROI by enhancing security, streamlining operations, and reducing infrastructure and service desk costs.
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.
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.
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.
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.
By eliminating the need for multiple VPN channels and enabling direct work from Azure servers, we have achieved approximately 30% efficiency savings.
 

Customer Service

Sentiment score
4.3
Microsoft Entra External ID support varies; response times, documentation, and regional differences affect user satisfaction and solution accessibility.
Sentiment score
6.7
Microsoft Entra ID support receives mixed reviews, with premium support preferred for efficient resolutions and varying response quality.
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.
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.
The actual support when you get to that level is a ten out of ten.
There are immediate answers to any issues that arise with great knowledge and a deep understanding of the product and business needs.
They usually try to deflect, buy time, and often do not address the problem immediately.
 

Scalability Issues

Sentiment score
7.0
Microsoft Entra External ID offers scalable security for large enterprises, with distinct policies and strong performance despite some latency issues.
Sentiment score
7.9
Microsoft Entra ID offers scalable, reliable cloud solutions for organizations, effortlessly supporting varied user counts without performance issues.
This is one of EID's weak points compared to Azure AD B2C, which offers customizable authentication options, including attribute and password combinations.
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.
We experienced no scalability issues with Microsoft Entra ID.
Its scalability is impressive, aided by Microsoft's efforts to expand its data centers.
When dealing with tens of thousands of objects, it requires proper management and best practices to retrieve only necessary data.
 

Stability Issues

Sentiment score
5.7
Microsoft Entra External ID is highly stable, reliable, and smooth, with minor rare issues, and positive user feedback.
Sentiment score
7.9
Microsoft Entra ID is highly stable and reliable, with minor disruptions, maintaining strong user confidence and high ratings.
I'd rate the stability of the Microsoft Entra External ID as a 10.
The stability of this solution is very good.
I have not encountered any stability issues with Microsoft Entra External ID.
It's a critical solution that we can't do without.
The stability of the solution is very high at 99.999%.
We rarely had significant problems or crashes.
 

Room For Improvement

Microsoft Entra External ID needs improved support, integration, pricing, security, UI, and customization for medium-sized businesses.
Microsoft Entra ID users seek better documentation, integration, security, cost-effective licensing, intuitive interface, and efficient support service improvements.
This is particularly challenging during enterprise agreement renewals, as it's difficult for customers to review costs leading to lengthy negotiations.
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.
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.
A recent incident we dealt with took four months to resolve with a seven-day deadline, which was quite frustrating.
Synchronization issues occasionally occur, making it challenging to analyze logs and pinpoint the exact problem.
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.
 

Setup Cost

Microsoft Entra External ID pricing is complex, potentially costly, but scalable, benefiting from Azure expertise and existing subscriptions.
Microsoft Entra ID provides scalable, cost-effective pricing with features like P1 and P2, competitive rates, and discounts for specific sectors.
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.
We are getting our money's worth.
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.
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.
 

Valuable Features

Microsoft Entra External ID enhances security, management, and user experience through integration, single sign-on, and adaptive authentication features.
Microsoft Entra ID enhances security and user experience with robust identity management, integration, and data protection 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.
EID unifies workforce users with external business partners, which is a very strong feature.
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.
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.
It's integrated with Microsoft technologies like Authenticator, SSO, and MFA, streamlining operations and creating a seamless environment.
The granular control, such as preventing logins from specific locations, enhances security significantly.
 

Categories and Ranking

Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
9th
Ranking in Microsoft Security Suite
21st
Average Rating
7.6
Reviews Sentiment
5.8
Number of Reviews
13
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th)
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
235
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (2nd), Access Management (1st)
 

Mindshare comparison

As of August 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 2.1%, up from 1.2% compared to the previous year. The mindshare of Microsoft Entra ID is 25.6%, down from 28.8% 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.
Bahram Piri - PeerSpot reviewer
Security focus and seamless implementation increase platform productivity
Microsoft Entra ID can be improved in many ways, and there's a big wish list.If we're focusing on security, something that I definitely expect is improvement in the UI and UX for frontline workers. This is important, especially for non-tech savvy individuals. It is something Microsoft Entra ID could do to improve for a wider audience. It's important to focus on the frontline workers since they are non-tech savvy individuals. They are not like those back-office engineering C-level employees who are constantly dealing with computers, and we need to build a specific user experience and user interface for them to handle this stuff. That's something I expect Microsoft to focus on more for Microsoft Entra ID.
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Financial Services Firm
10%
Manufacturing Company
8%
Government
7%
Computer Software Company
14%
Financial Services Firm
11%
Manufacturing Company
8%
Government
8%
 

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?
Concerning the pricing or setup costs for Microsoft Entra External ID, based on my experience with Entra and 365 in general, it shouldn't require a whole education on their software. That's been a ...
What needs improvement with Microsoft Entra External ID?
I haven't utilized the adaptive authentication feature. We haven't used the customization capability for user journeys within the Microsoft Entra External ID. I don't have experience trying to crea...
What is your primary use case for Microsoft Entra External ID?
I'm more familiar with the Microsoft Entra External ID, the Active Directory external identities, because we have a hybrid environment. For the parts that I handle, the on-premise part is easier fo...
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?
Our experience with the pricing, setup costs, and licensing of Microsoft Entra ID involves leveraging Microsoft 365 E5 licensing, so it's included. Being included in Microsoft licensing makes it mu...
 

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: July 2025.
865,295 professionals have used our research since 2012.