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Microsoft Entra External ID vs Microsoft Entra ID Governance comparison

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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)
10th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (6th), Microsoft Security Suite (16th)
Microsoft Entra ID Governance
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
12th
Average Rating
7.8
Reviews Sentiment
6.3
Number of Reviews
14
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of September 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.6%, down from 2.9% compared to the previous year. The mindshare of Microsoft Entra ID Governance is 2.3%, down from 2.4% 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 External ID1.6%
Microsoft Entra ID Governance2.3%
Other96.1%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

Suresh Kumar Subramaniyan - PeerSpot reviewer
Manager, Identity & Access Management at a financial services firm with 10,001+ employees
Has supported secure access but still lacks full coverage for external identity challenges
The user experience is acceptable, but Microsoft Entra External ID is not a full-fledged IGA solution. We use different products for complete Identity Governance Administration. Microsoft Entra External ID is suitable for small-scale enterprises implementing identity lifecycle management since most have Active Directory. However, there are several challenges. The out-of-the-box connector has limited features for applications, requiring us to build scheme connectors. While small-scale enterprises can benefit from Microsoft Entra External ID's Identity Governance solution, large-scale enterprises might need different tools from leading market vendors such as SailPoint or Saviynt. Customers face particular challenges with contractor and B2B accounts. Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory. There are delays in the identity lifecycle process, especially for contract partners during onboarding and off-boarding. This might be due to back-end syncing with Active Directory. B2B account removal and provisioning take considerable time. Access governance, particularly access certification for guest users, is time-consuming. Multi-factor authentication enforcement also presents challenges for external users.
AmitRathod - PeerSpot reviewer
Senior Analyst at Toll Holdings Limited
Automated access governance has strengthened security and supports user-centric approvals
The workflows such as joiner, mover, and leaver work in Microsoft Entra ID Governance. Entitlement Management is a bundle of resources where Microsoft Entra ID applications, groups, and SharePoint sites are packaged into a single package so that users can request it. This is one of the great features for Microsoft Entra ID Governance. Another feature is Access Review, which allows an automated schedule to be managed for the manager or resource owner so that they can verify whether people still need access. Privileged Identity Management is another feature for governance that provides just-in-time (JIT) access for administrative roles. For example, instead of being a permanent or global admin, which is a major security risk, an IT professional is eligible for the role and must request four hours of access only when they need to perform a specific task. There is a feature called access package. If any user wants particular application access, they can request this application via Microsoft Entra ID Governance access package. Whenever an end user makes a request, the access goes to one application manager and their current line manager. If they approve it, then they get the application access. This is a very good feature for user-centric purposes. Microsoft Entra ID Governance includes securing AI agent identity. As a company uses more AI generation such as Copilots or custom bots, those bots need their own identity just as employees do. Microsoft Entra now provides a way to assign unique identities to AI agents so you can control what data they can access. Microsoft Entra ID Governance protection now looks for risky behavior in AI agents. If a bot suddenly tries to download an unusual amount of data or unconscious data, it can detect this as a risk detection factor. Security Copilot allows Entra administrators to manage identity with natural language. Microsoft Entra ID Governance has protection and authentication features. Smart risk detection protects and analyzes to detect threats such as impossible travel. If a person is logging in from many different locations, it detects this as a risk factor. A user cannot use an unauthenticated password or log in from an incompatible device. These AI features are used in conditional access management in Microsoft Entra ID Governance. Automation is used for user onboarding, user offboarding, and user update processes through user lifecycle management. If an organization uses Workday as an HR application where new users join and fill in their details, all these details get reflected into Workday and then reflected into Active Directory as well as Microsoft Entra ID Governance. This automation helps to manage the day-to-day user onboarding process, user offboarding process, and user update process. Microsoft Entra ID Governance automation also helps with password-related tasks, access recertification, and reporting.

Quotes from Members

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

Pros

"The single sign-on access is the most useful feature we use."
"The times that I have gone into it, I found it easy to use and I haven't had any issues with it."
"For policy management in my organization, I would say it is perfect."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The best features of Microsoft Entra External ID include its unification of B2C functionality and B2E features."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"It's quite easy to manage and monitor."
"The product's most valuable features are the robust audit trail capabilities."
"It is compliant with our RVRT and CSV guidelines."
"The best features are Access Review and Entitlement Management, where recertification can be run on-demand or on a time-based schedule so that all privileged users get certified by their managers regarding whether they still need access, making it a very good feature for user-centric purposes."
"Regarding Microsoft Entra ID Governance integration with Microsoft services, there is automated identity lifecycle management in the product."
"Access reviews are an essential feature of Entra Governance. Additionally, privileged identity management is one of its most valuable features. Just-in-time access, or Jet GIT, is integral to this system. Moreover, user behavior analytics stands out as one of its top features."
"The most valuable feature of Microsoft Entra ID Governance is access reviews."
"The most valuable functions in Microsoft Entra ID Governance are ease of use, conducting access reviews, and tighter platform coupling."
"The solution is fully scalable, supporting everything from small companies to large enterprises."
 

Cons

"The authentication methods available are very limited, and this presents a weak point."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"I would like to see faster synchronization."
"As of latest, when it comes to my experience, I am not satisfied."
"Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory."
"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."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"Microsoft Entra ID Governance should improve its capability to manage identities and access from a single console."
"There are some areas where improvements are necessary. Even though we have almost the full package, there are some bugs."
"There is a slight delay from creation of the actual access review to how long it takes to complete the actual review. For us, we are a large organization with over ten thousand employees... it takes a while to actually complete, and then it becomes a headache for managers."
"Microsoft has done a commendable job with RPAX. However, Microsoft should prioritize enhancing its ABAC (Attribute-Based Access Control) capabilities. Currently, Microsoft's ABAC offering falls behind AWS in comparison."
"The product's workflow approval process needs improvement."
"One area for improvement in Microsoft Entra ID Governance could be providing more granular control over security policies."
"In terms of integration, improvements could be made."
"Bridging between on-premises and cloud services has the potential for improvement. For instance, it would be beneficial to be able to synchronize traditional directory schemas with Azure. I need to maintain an on-premises Active Directory server for certain required services."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"There are no additional costs besides the standard licensing fees."
"The solution's pricing is not low but reasonable."
"While other products give the pricing for their application, Microsoft Entra ID Governance has a per-user-based license model."
"In the education sector where I work, the annual cost for my Google and Microsoft environments is approximately $35,000. This covers the needs of 3,400 students and 800 faculty and staff members."
report
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Top Industries

By visitors reading reviews
Financial Services Firm
14%
Computer Software Company
10%
Manufacturing Company
10%
Outsourcing Company
10%
Computer Software Company
10%
Outsourcing Company
9%
Financial Services Firm
9%
Government
9%
 

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 Business2
Midsize Enterprise3
Large Enterprise10
 

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...
What needs improvement with Microsoft Entra ID Governance?
There is one feature that I do not prefer. If a manager approves access for a particular user and wants to change their decision about whether the user should retain access or not, once they approv...
What is your primary use case for Microsoft Entra ID Governance?
I use Microsoft Entra ID Governance for identity and access management as well as access recertification. The workflows such as joiner, mover, and leaver work in Microsoft Entra ID Governance. Enti...
What advice do you have for others considering Microsoft Entra ID Governance?
The best features are Access Review and Entitlement Management. Recertification can be run on-demand as and when any recertification slip occurs. There is also time-based recertification, which we ...
 

Also Known As

Azure Active Directory External Identities
No data available
 

Overview

Find out what your peers are saying about Microsoft Entra External ID vs. Microsoft Entra ID Governance and other solutions. Updated: August 2026.
913,076 professionals have used our research since 2012.