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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
21st
Average Rating
7.6
Reviews Sentiment
5.5
Number of Reviews
16
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (8th)
Microsoft Entra Verified ID
Ranking in Customer Identity and Access Management (CIAM)
8th
Ranking in Microsoft Security Suite
25th
Average Rating
8.0
Reviews Sentiment
7.9
Number of Reviews
5
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of October 2025, in the Customer Identity and Access Management (CIAM) category, the mindshare of Microsoft Entra External ID is 8.4%, up from 4.6% compared to the previous year. The mindshare of Microsoft Entra Verified ID is 4.0%, down from 6.5% 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 ID8.4%
Microsoft Entra Verified ID4.0%
Other87.6%
Customer Identity and Access Management (CIAM)
 

Featured Reviews

Suresh Kumar Subramaniyan - PeerSpot reviewer
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.
Andy Yen - PeerSpot reviewer
Offers single sign-on feature for business applications but needs to offer personalized insights
Microsoft Entra Verified ID has saved time for IT admins. The product helps us save money from the cost of security breaches. It is a more cost-effective solution than others in the market. It comes in a Microsoft suite. You can manage permission and access the products without buying anything additional. I rate it a six out of ten.

Quotes from Members

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

Pros

"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"I have not encountered any stability issues with Microsoft Entra External ID."
"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 impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Microsoft Entra External ID is more secure, offering a secure environment."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"I would recommend this solution to others because it's simple enough to deploy."
"The most valuable features of the solution are mainly in the areas of security and auditing."
"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 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."
 

Cons

"I would like to see faster synchronization."
"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."
"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 problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"The cost is very high."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"There have been a couple of times when it was unavailable because of Microsoft issues, but other than that, I don't remember any problems."
"The tool's expensive nature is an area of concern where improvements are required."
"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 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."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"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."
"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."
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
9%
Government
7%
Computer Software Company
19%
Financial Services Firm
9%
Healthcare Company
7%
Manufacturing Company
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
No data available
 

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 do you like most about Microsoft Entra Verified ID?
I like the Microsoft Authenticator app since it comes with two-factor authentication.
What needs improvement with Microsoft Entra Verified ID?
I don't think there are areas that could be improved with the product. It looks pretty good already. AI could be an area for continuous improvement or even pricing. The Microsoft Entra Verified ID ...
What is your primary use case for Microsoft Entra Verified ID?
We deal with the Microsoft Entra Verified ID as a dictionary where we put all the users. We use it more for internal purposes, but we do have a lot of guest accounts there. We are in the non-profit...
 

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: September 2025.
868,759 professionals have used our research since 2012.