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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)
13th
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.7
Number of Reviews
8
Ranking in other categories
Customer Identity and Access Management (CIAM) (7th)
Microsoft Entra ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
1st
Ranking in Microsoft Security Suite
2nd
Average Rating
8.6
Reviews Sentiment
7.1
Number of Reviews
223
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (1st), Access Management (1st)
 

Mindshare comparison

As of April 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.7%, up from 1.0% compared to the previous year. The mindshare of Microsoft Entra ID is 28.4%, down from 29.0% 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

"It's quite easy to manage and monitor."
"I have not encountered any stability issues with Microsoft Entra External ID."
"The most valuable feature for me is the firewall capabilities."
"The single sign-on access is the most useful feature we use."
"Microsoft Entra External ID is more secure, offering a secure environment."
"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 fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"The solution has a variety of tools. Two of the most valuable features are the ability to create users and to replicate the user account from on-premise to the cloud."
"The self-password reset if it's enabled and configured properly, really helps a company be able to reset rather than getting IT involved."
"If you want to replicate a website at the frontend in Azure, it's very easy to do it globally."
"Entra ID's anti-phishing measures have improved our phishing response."
"It can be used to grant access at a granular level. It provides secure access and many ways to offer security to your user resources. It provides a good level of security for any access on Azure. It gives you options like multi-factor authentication where apart from your password, you can use other factors for authentication, such as a code is sent to your phone or the authenticator app that you can use login."
"It is cloud based so it is always updated,"
"The features around permissions are excellent."
"Microsoft Entra ID Protection and Microsoft Sentinel are both excellent monitoring features for Microsoft Entra ID."
 

Cons

"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"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."
"The cost is very high."
"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."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"Technical support needs improvement."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"Microsoft Entra ID could benefit from more fine-tuned rights. It is necessary to prevent granting an application or user broad access rights."
"In terms of stability, sometimes the more applications you integrate, the more it becomes a little bit unstable."
"They can improve how people manage their accounts. They can simplify and provide more information about adding or updating a phone number or email id in the MSA account. A lot of time users do get confused about where to go. For example, if I've changed my mobile number, where do I go and change my mobile number in the MSA account? A lot of time, employees think if they change the phone number in the HR database, it'll automatically get changed on the MSA account, which is not the case. Microsoft can simplify that and add these questions in the FAQ documents as well."
"One challenge with Entra ID is its complexity, stemming from integrating many components into a single solution."
"The main issue is that because Active Directory is in the cloud, it will inevitably be dependent on internet connectivity."
"Documentation I think is always the worst part with what Azure's doing right now across the board."
"Definitely, the price could be lower. When we moved from AWS to Azure, we started paying more."
"We have experienced some downtime because of the use of the data centers."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"It comes free with the Microsoft account. We have a yearly agreement, and all products are covered under it."
"MFA and P2 licenses for two Azures for fully-enabled scenarios and features cost a lot of money. This is where Okta is trying to get the prices down."
"Entra has P1 and P2 licenses that are bundled with lots of applications."
"We are always looking for better pricing."
"Azure has an educational package available for students with a variety of licenses and different software available."
"Azure Active Directory is more expensive than Google, but the capabilities they provide are superior."
"The licensing model is straightforward. I don't think there are any issues with the E3 license or E5 license."
"If you're on Azure, it can be free or it's incorporated, at no extra cost, or it can become extremely complicated."
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Top Industries

By visitors reading reviews
Computer Software Company
15%
Financial Services Firm
11%
Manufacturing Company
11%
Healthcare Company
7%
Educational Organization
32%
Computer Software Company
10%
Financial Services Firm
9%
Manufacturing Company
6%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

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...
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?
Microsoft Entra ID is reportedly quite expensive for each user regarding security features. The renewal cost is particularly high according to the teams managing purchases.
 

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: February 2025.
847,862 professionals have used our research since 2012.