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Microsoft Entra External ID vs Microsoft Entra Verified ID comparison

 

Comparison Buyer's Guide

Executive SummaryUpdated on Jan 27, 2025

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 Customer Identity and Access Management (CIAM)
4th
Ranking in Microsoft Security Suite
18th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (9th)
Microsoft Entra Verified ID
Ranking in Customer Identity and Access Management (CIAM)
8th
Ranking in Microsoft Security Suite
20th
Average Rating
8.0
Reviews Sentiment
6.8
Number of Reviews
8
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of January 2026, in the Customer Identity and Access Management (CIAM) category, the mindshare of Microsoft Entra External ID is 5.8%, up from 5.8% compared to the previous year. The mindshare of Microsoft Entra Verified ID is 3.2%, down from 4.1% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Customer Identity and Access Management (CIAM) Market Share Distribution
ProductMarket Share (%)
Microsoft Entra External ID5.8%
Microsoft Entra Verified ID3.2%
Other91.0%
Customer Identity and Access Management (CIAM)
 

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.
MuhammadWaqar - PeerSpot reviewer
IT Director at Interwood Mobel Pvt Ltd
Supports user management and authentication but needs simpler hybrid integration for broader adoption
I believe there should be an easy provision for the on-premises and for the hybrid environment in Microsoft Entra Verified ID, as there seems to be some difficulty with hybrid implementations, especially in a country like Pakistan where most are transitioning to cloud but not fully migrating, instead opting for hybrid solutions. An ease for hybrid integration would greatly help the technical teams. I believe the policy implementation is a little bit complex on the Microsoft side; there should be a simpler way to implement policies, utilizing standardized templates for compliance, such as industry-specific templates for the service industry, which would be helpful for HIPAA and other compliances.

Quotes from Members

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

Pros

"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 single sign-on access is the most useful feature we use."
"The most valuable feature for me is the firewall capabilities."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"Microsoft Entra External ID offers numerous advantages; there's no need to maintain anything on-premises, which results in a significant IT infrastructure cost saving."
"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 fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Microsoft Entra Verified ID has smoothed out our identity verification process and made it easier for us to authenticate users, making us more confident about our users being who they say they are so we can trust that we have secure logins for all our users."
"I find Microsoft Dynamics 365 very easy and useful because most of the users on our end are using Microsoft, thus they are very familiar with the Microsoft Office stack, and some of SharePoint and Teams."
"I would recommend this solution to others because it's simple enough to deploy."
"I like the Microsoft Authenticator app since it comes with two-factor authentication."
"The authentication features of Microsoft Entra Verified ID are valuable. As an infrastructure professional, I appreciate the exceptional integration between on-premises Active Directory features and Entra ID."
"The most valuable features of the solution are mainly in the areas of security and auditing."
"The MFA number matching feature effectively prevents unauthorized access by phishing bad actors who might obtain email credentials. This feature requires users to verify a number on their screen, ensuring they only approve genuine requests."
"Microsoft Entra Verified ID has helped reduce fraud or impersonation attacks because if you are using a government-sanctioned ID, what is more secure than that?"
 

Cons

"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"I would like to see faster synchronization."
"The authentication methods available are very limited, and this presents a weak point."
"Technical support needs improvement."
"The cost is very high."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"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."
"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 tool's expensive nature is an area of concern where improvements are required."
"I have not really seen return on investment with Microsoft Entra Verified ID."
"I must do two-factor authentication when I sign in from a different location. It creates friction. It's not personalized for the end user. I would like to see specific insights."
"Microsoft products basically have no support other than the knowledge base, so I would give it a two out of 10."
"There are issues with the integration of Microsoft Entra Verified ID and MFA. Sometimes, the MFA process doesn't succeed, requiring users to sign out and log back in."
"While Microsoft continues to improve the solution, integrating the ID with biometric features could be enhanced, especially in terms of standard B2C flows for multi-factor authentication. Improvements in remembering devices and the timing of MFA triggers could also be beneficial."
"I believe there should be an easy provision for the on-premises and for the hybrid environment in Microsoft Entra Verified ID, as there seems to be some difficulty with hybrid implementations, especially in a country like Pakistan where most are transitioning to cloud but not fully migrating, instead opting for hybrid solutions."
"There is room for improvement in Microsoft Entra Verified ID, particularly in the integration with other platforms, as they could do better with the API, for example."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"The pricing and setup are standard. With Entra, you choose between P1 and P2 licenses. We recommend having at least one P2 license in a company for better alert management, even though P2 is more expensive."
"I still feel the pricing is on the higher side for larger customers. They don't pay anything for on-prem Active Directory. Although we receive additional features with Microsoft’s SSO, pricing is an area Microsoft can work on."
"If one is cheap and ten is very expensive, I rate the product price as seven."
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Top Industries

By visitors reading reviews
Computer Software Company
14%
Financial Services Firm
12%
Manufacturing Company
9%
Government
8%
Computer Software Company
18%
Manufacturing Company
10%
Financial Services Firm
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 Business4
Large Enterprise4
 

Questions from the Community

What is your experience regarding pricing and costs for Microsoft Entra External ID?
The only problem that you might face with Microsoft now is their complex licensing model.
What needs improvement with Microsoft Entra External ID?
For the last four or five years, I have been in an IT manager function, focusing on making things happen and having technical persons execute tasks. In the last three months, I have transitioned to...
What is your primary use case for Microsoft Entra External ID?
I am looking for a new solution and investigating existing products. We are already working with Microsoft Intune and SOTI. I have been working in the past with a Kaseya product, specifically Datto...
What needs improvement with Microsoft Entra Verified ID?
It is hard for me to say how Microsoft Entra Verified ID can be improved. I really do not know the extent of how that can benefit everything. I am trying to learn that here at the Ignite conference.
What is your primary use case for Microsoft Entra Verified ID?
My main use cases for Microsoft Entra Verified ID are verifying the end user saying who they are and being able to back that up with government-issued proof.
What advice do you have for others considering Microsoft Entra Verified ID?
My organization has not implemented the Face Check feature yet; we are using YubiKeys. My organization's trust in digital interactions really has not changed since implementing Microsoft Entra Veri...
 

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 Verified ID and other solutions. Updated: January 2026.
881,082 professionals have used our research since 2012.