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Microsoft Entra External ID vs Microsoft Entra ID 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)
22nd
Ranking in Microsoft Security Suite
33rd
Average Rating
7.8
Reviews Sentiment
6.9
Number of Reviews
5
Ranking in other categories
Customer Identity and Access Management (CIAM) (9th)
Microsoft Entra ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
1st
Ranking in Microsoft Security Suite
3rd
Average Rating
8.6
Reviews Sentiment
7.1
Number of Reviews
218
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (1st), Access Management (1st)
 

Mindshare comparison

As of February 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.5%, up from 0.8% compared to the previous year. The mindshare of Microsoft Entra ID is 29.3%, up from 29.4% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

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.
Aaron Liang - PeerSpot reviewer
Has significantly improved secure access to applications and resources in our environment
Microsoft Entra ID has helped by simplifying our management of permissions for APIs. We are not directly exposing credentials, as we use tokens instead. It has made management easier and more secure, especially in a multi-user environment. The implementation of Microsoft Entra ID significantly improved secure access to applications and resources in our environment, primarily through the widespread use of single-sign-on. Managing API permissions became much easier, as application registration often involves calling an API to utilize services without directly exposing credentials, relying instead on token-based authentication. This streamlined approach benefits end-users by simplifying access while remaining transparent to them. Ultimately, my role focuses on ensuring a smooth and user-friendly experience, even if the underlying technology remains unseen by the end-users. Our company strongly emphasizes passwordless authentication, primarily through device-bound passkeys in Microsoft Authenticator. While administrators with high-privileged accounts utilize YubiKeys and passwords for tasks like accessing Microsoft Graph, we are actively transitioning all other users towards passwordless methods such as Windows Hello biometrics. This approach streamlines authentication and enhances security. Though initial deployment in 2022 presented challenges due to hardware limitations and the lingering effects of the COVID-19 pandemic, the technology has significantly improved and provides a simple and effective user experience.

Quotes from Members

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

Pros

"The most valuable feature for me is the firewall capabilities."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"It's quite easy to manage and monitor."
"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 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 solution adds an extra layer of security."
"It's definitely both stable and scalable."
"The ability to offer employees access to any platform, including private PCs and tablets, has been a game-changer."
"Identity management with policies stands out as the most valuable feature. It offers a hands-off experience, providing full control over user access."
"Personally, I'm a great fan of Azure Active Directory due to the security and compliance features that are there in the classic or default Azure Active Directory."
"Azure Active Directory provides us with identity-based authentication, which secures access at the user level and also integrates with conditional access policies and multi-factor authentication helping to increase the identity security for that person. So, the hacking and leaking of passwords is a secondary problem because you will not authenticate a person with one factor. There is a second factor of authentication available to increase the security premise for your company."
"Conditional access and Privileged Identity Management (PIM) are the most valuable features from a security perspective."
"From an administrative perspective, we can now manage users from a single pane of glass, which enhances efficiency."
 

Cons

"Technical support needs improvement."
"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."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"The cost is very high."
"I would like to see faster synchronization."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"The thing that is a bit annoying is the inability to nest groups. Because we run an Azure hybrid model, we have nested groups on-premise which does not translate well. So, we have written some scripts to kind of work around that. This is a feature request that we have put in previously to be able to use a group that is nested in Active Directory on-premise and have it handled the same way in Azure."
"There is a lot of room for improvement in terms of its integration with the local Active Directory. There are some gaps in terms of the local Active Directory through which Microsoft is syncing our environment from our data center. There should be the availability of custom attributes on Azure Active Directory. In addition, there should be the availability of security groups and distribution groups that are residing on the local Active Directory. Currently, they are not replicated on Azure Active Directory by default."
"You can manage the users from the Office 365 administration center, and you can manage them from Azure Active Directory. Those are two different environments, but they do the same things. They can gather the features in one place, and it might be better if that place were Azure."
"The permission management is a mess."
"Better deployment management and visibility functionality would be helpful."
"Our users sometimes experience issues from having multiple Microsoft accounts, which can cause some confusion and hassle."
"The technical support could improve by having a faster response time."
"When it comes to Azure, creating certain things or getting different resources isn't very clear. You need a certain level of knowledge of the system. It could be a little bit more friendly so that some of the things can be done easily, but after everything is created, it's easy to use."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"Entra's pricing is somewhat higher compared to AWS."
"Our customers are looking for advanced features and processes for it to be cost-effective for their organizations. They see it as an overpriced product. They are enjoying using Azure Active Directory, but they are looking for better prices."
"For you to make use of some of the security features, you need to upgrade your licenses. If it is possible, could they just make some features free? For instance, for the Condition Access policy, you need to set that up and be on Azure AD P2 licensing. So if they could make it free or reduce the licensing for small businesses, that would be cool, as I believe security is for everyone."
"We have a yearly license."
"Azure Active Directory has a very extensive licensing model. Most of the features are available in the free and basic version, and then there are premium P1 and P2 editions. The licensing model is based on how many users you have per month. In Australia, for a P1 license, the cost is 8 dollars. With P1 and P2 licenses, you get a lot of goodies around the security side of things. For example, User Identity Protection is available only in P2. These are extra features that allow you to have a pretty good security posture, but most of the required things are available in the free and basic version."
"Licensing costs for Microsoft Entra ID remain a concern, especially with the price increases in 2023."
"Make sure that you get the most out of your Office 365 licenses for Azure AD. If you have additional concerns for users who don't have an Office 365 license, consider Azure AD Premium P1 and P2. Be aware that you have to evaluate your license usage beforehand."
"The pricing is good; it's not cheap but very reasonable."
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Top Industries

By visitors reading reviews
Computer Software Company
16%
Financial Services Firm
12%
Manufacturing Company
10%
Healthcare Company
6%
Educational Organization
33%
Computer Software Company
10%
Financial Services Firm
9%
Manufacturing Company
6%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
No data available
 

Questions from the Community

What is your experience regarding pricing and costs for Microsoft Entra External ID?
It's quite expensive, especially as you grow and add more users. Initially, with a small number of people, the costs were manageable.
What needs improvement with Microsoft Entra External ID?
The most important issue is the cost. I generally find Microsoft solutions expensive, especially in specific offerings. A common concern among the customers I visit is the unpredictability of Micro...
What is your primary use case for Microsoft Entra External ID?
I have been dealing with the security part for sure.
How does Duo Security compare with Microsoft Authenticator?
We switched to Duo Security for identity verification. We’d been using a competitor but got the chance to evaluate Duo for 30 days, and we could not be happier. Duo Security is easy to configure a...
What do you like most about Azure Active Directory?
It is very simple. The Active Directory functions are very easy for us. Its integration with anything is very easy. We can easily do third-party multifactor authentication.
What is your experience regarding pricing and costs for Azure Active Directory?
We are an enterprise customer with an enterprise agreement in place with many of our partner companies, so there are no special questions or issues about pricing, setup cost, or licensing.
 

Also Known As

Azure Active Directory External Identities
Azure AD, Azure Active Directory, Azure Active Directory, Microsoft Authenticator
 

Interactive Demo

Demo not available
 

Overview

 

Sample Customers

Information Not Available
Microsoft Entre ID is trusted by companies of all sizes and industries including Walmart, Zscaler, Uniper, Amtrak, monday.com, and more.
Find out what your peers are saying about Microsoft Entra External ID vs. Microsoft Entra ID and other solutions. Updated: January 2025.
838,713 professionals have used our research since 2012.