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Microsoft Entra External ID vs Microsoft Entra ID Governance 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)
10th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (5th), 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 July 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.8%, down from 2.4% compared to the previous year. The mindshare of Microsoft Entra ID Governance is 2.8%, up from 1.9% 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 ID1.8%
Microsoft Entra ID Governance2.8%
Other95.4%
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.
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 impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"The times that I have gone into it, I found it easy to use and I haven't had any issues with it."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"The best features of Microsoft Entra External ID include its unification of B2C functionality and B2E features."
"The experience has been rather good; there are other possibilities, but we made the choice to go with Microsoft, and we have a good experience with that."
"For policy management in my organization, I would say it is perfect."
"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."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"The platform's most valuable feature is the single sign-on service."
"The solution gives me the capability to automatically move guest accounts from the tenant without any manual intervention."
"The product's most valuable features are the robust audit trail capabilities."
"It is compliant with our RVRT and CSV guidelines."
"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 features are multifactor authentication and account creation for the Exchange environment in Office 365."
"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."
"The most valuable feature of Microsoft Entra ID Governance for identity management is multi-factor authentication."
 

Cons

"The cost is very high."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"As of latest, when it comes to my experience, I am not satisfied."
"Technical support needs improvement."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"The support engineers are not as skilled as our engineers. When they say something would not work, or there is no solution, we usually hear that Microsoft would not support this."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"The authentication methods available are very limited, and this presents a weak point."
"There are some areas where improvements are necessary. Even though we have almost the full package, there are some bugs."
"Microsoft Entra ID Governance should improve its capability to manage identities and access from a single console."
"The platform's configuration process needs improvement."
"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."
"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."
"Sometimes, the solution is not super reliable."
"If you want to conduct access review of database-based applications, then you cannot do that."
 

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."
"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."
"While other products give the pricing for their application, Microsoft Entra ID Governance has a per-user-based license model."
"The solution's pricing is not low but reasonable."
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Top Industries

By visitors reading reviews
Financial Services Firm
14%
Computer Software Company
10%
Manufacturing Company
9%
Outsourcing Company
9%
Computer Software Company
11%
Financial Services Firm
10%
Government
9%
Healthcare 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 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: June 2026.
906,852 professionals have used our research since 2012.