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Microsoft Defender XDR vs Microsoft Entra External ID comparison

 

Comparison Buyer's Guide

Executive Summary

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 Defender XDR
Ranking in Microsoft Security Suite
3rd
Average Rating
8.4
Reviews Sentiment
7.1
Number of Reviews
97
Ranking in other categories
Endpoint Detection and Response (EDR) (5th), Extended Detection and Response (XDR) (4th)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.7
Number of Reviews
8
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (13th), Customer Identity and Access Management (CIAM) (7th)
 

Mindshare comparison

As of April 2025, in the Microsoft Security Suite category, the mindshare of Microsoft Defender XDR is 5.6%, down from 8.5% compared to the previous year. The mindshare of Microsoft Entra External ID is 0.6%, up from 0.3% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite
 

Featured Reviews

Gabor Nyerd - PeerSpot reviewer
Includes four services and four products, which can help organizations a lot
We found that sometimes integrations work, but testing them can take some time. Sometimes, configurations take much longer than expected. We have a configuration in place that needs to be synchronized with another server. However, the servers are four hours apart, so this can cause delays. In general, I believe that the time it takes to configure and test a service should be shorter. Sometimes, it can take a couple of hours to test a single configuration setting. Other times, it is only ten or fifteen minutes, which is normal. However, sometimes, even immediate actions can be triggered by configuration changes, and some settings can take up to eight hours to complete. I believe that this time can be improved. Microsoft is making a lot of improvements to its services in a short period of time. This is a good thing, as it means that the services are constantly being updated and improved. However, it can be challenging for customers to keep up with the changes. For example, a customer may read about an update, understand it, and share it with their colleagues and boss. However, it may take days or weeks to test the update and get the necessary approvals. This can be especially challenging for large customers with many users or machines. In some cases, Microsoft may change a service before the customer has had a chance to implement the previous update. This can be frustrating for customers, as it means that they have to constantly learn new things and adjust their workflows. On the one hand, it is important for Microsoft to keep updating and improving its services. This helps to ensure that the services are meeting the customers' needs and that they are staying ahead of the competition. Microsoft should also be mindful of the challenges that these changes can create for customers. One way to address this challenge is to provide customers with more time to implement changes. Microsoft could also provide more information about upcoming changes so that customers can plan ahead. Ultimately, Microsoft needs to strike a balance between keeping its services up-to-date and providing customers with a smooth transition to new features.
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.

Quotes from Members

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

Pros

"Setting up Microsoft 365 Defender is easy. It's a user-friendly solution that provides threat protection. It has good stability and scalability."
"It gives a lot of flexibility in terms of configuration and customization as per the business requirements."
"The integration with other Microsoft solutions is the most valuable feature."
"Microsoft Defender XDR has significantly improved our operational security."
"The attack simulation is excellent; initially, this feature wasn't very robust, but Microsoft improved what we could achieve with it. We can now customize our practice phishing emails and include our company logo, for example. Attack simulation also helps integrate with third-party solutions where applicable and provides an overview of our security architecture through testing. The summary includes areas for improvement in our protection and what steps we need to take to get there."
"The EDR features are valuable. By getting the EDR features, we have more control over the device. We have information about events in real-time and more protection against zero-day threats and zero-day vulnerabilities. We can monitor every event or action that a device is going through. We can get an idea if it is something malicious or if we have to take any actions."
"The incident threat response and its ability to facilitate effective remediation against threats are the standout features."
"Microsoft Defender XDR is a complete package of different Defender solutions, including Defender for Endpoint, Defender for Office 365, Defender for Cloud, and Sentinel SIEM, among others."
"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 fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"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 most valuable feature for me is the firewall capabilities."
"It's quite easy to manage and monitor."
"I have not encountered any stability issues with Microsoft Entra External ID."
"The single sign-on access is the most useful feature we use."
"Microsoft Entra External ID is more secure, offering a secure environment."
 

Cons

"There is no comprehensive visibility, making it less user-friendly."
"The only issue I've had is, when it comes to deployment, the steps I must take around policy setup. That is challenging."
"It would be beneficial to reduce the number of clicks required to navigate between blades, as the current navigation and breadcrumb system can be a bit confusing. Some inconsistencies exist between blades, which could be improved for a more seamless user and UI experience."
"The logs could be better."
"In the future, it would be beneficial for Microsoft to consider making the product more user-friendly or simplified for those who are interested in using it. Currently, it requires a high level of technical expertise, making it challenging for beginners or less experienced individuals."
"Offboarding latency should be reduced. Even after a device has been successfully offboarded using a particular offboarding script, it still shows up as onboarded."
"I personally have not seen much evidence of how Defender can enhance the story of zero trust for enterprises."
"Intrusion detection and prevention would be great to have with 365 Defender."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"The cost is very high."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"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."
"Technical support needs improvement."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
 

Pricing and Cost Advice

"There are no issues with pricing, but sometimes, the clarity in licensing is a concern."
"Microsoft 365 Defender offers competitive pricing."
"Microsoft Defender XDR's licensing is complicated."
"The product is fairly priced for what we get from it."
"They have moved from a licensing model to pay-per-use... The question is: What happens if, for any reason, there's not enough budget to accept this model? That could be a great problem."
"The price of the solution is high compared to others and we have lost some customers because of it."
"Microsoft Defender XDR is already included in our Office 365 licensing. It is better because we're saving money by using it."
"We have a lot of problems in Latin America regarding the price of Microsoft 365 Defender, because the relationship between dollars and the money of the different countries, it's is a lot. Many customers that have small businesses say that they would like the solution but it is too expensive. However, large companies do not find the cost an issue."
"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
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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
15%
Financial Services Firm
12%
Manufacturing Company
11%
Healthcare Company
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

What do you like most about Microsoft 365 Defender?
Microsoft Defender XDR provides strong identity protection with comprehensive insights into risky user behavior and potential indicators of compromise.
What is your experience regarding pricing and costs for Microsoft 365 Defender?
Licensing is somewhat confusing, particularly when presenting our pitch decks to stakeholders and leveraging key features in premium SKUs, but we managed with some assistance from Microsoft.
What needs improvement with Microsoft 365 Defender?
It would be beneficial to reduce the number of clicks required to navigate between blades, as the current navigation and breadcrumb system can be a bit confusing. Some inconsistencies exist between...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
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.
What needs improvement with Microsoft Entra External ID?
Some areas where Microsoft Entra External ID could improve include cost and enhanced security for integration with federated logins like LinkedIn and Gmail.
What is your primary use case for Microsoft Entra External ID?
I am working on a project for a university where we are trying to create a digital twin of a coral reef restoration project in Saudi Arabia. This involves using a big data platform and developing a...
 

Also Known As

Microsoft 365 Defender, Microsoft Threat Protection, MS 365 Defender
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Accenture, Deloitte, ExxonMobil, General Electric, IBM, Johnson & Johnson and many others.
Information Not Available
Find out what your peers are saying about Microsoft Defender XDR vs. Microsoft Entra External ID and other solutions. Updated: March 2025.
847,625 professionals have used our research since 2012.