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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)
12th
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
219
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (1st), Access Management (1st)
 

Mindshare comparison

As of March 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.6%, up from 0.9% compared to the previous year. The mindshare of Microsoft Entra ID is 28.7%, down from 29.2% 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 single sign-on access is the most useful feature we 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."
"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."
"It's quite easy to manage and monitor."
"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 most valuable feature for me is the firewall capabilities."
"Microsoft Entra ID Protection and Microsoft Sentinel are both excellent monitoring features for Microsoft Entra ID."
"We haven't had any problems with stability. Everything works fine."
"Privilege identity management is the most valuable feature."
"We do not have to deploy lots of machines all over the place to run things as a service, which is how we like to deploy things, just as a service."
"The boards for task tracking are a valuable feature."
"The ability to offer employees access to any platform, including private PCs and tablets, has been a game-changer."
"The most valuable features in Active Directory are the password writeback product and the MDM technology."
"The most valuable components of the solution are provisioning and deprovisioning since both features work...Microsoft Entra Verified ID is a very stable solution."
 

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 would like to see faster synchronization."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"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 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."
"The technical support has its downsides and upsides. While they are fast, it can take time to get the right person because there are many steps to reach the appropriate team member at Microsoft support, which can be somewhat annoying."
"Rule management and permissions need improvements."
"Microsoft Entra ID should improve workload identities. It should set conditional access."
"The ease of use regarding finding audit information for users could also be improved."
"They should put the features of P1 and P2 into a single license."
"The response from actual support tickets is a bit laggy, and I would like them to be more responsive."
"Generally, everything works pretty well, but sometimes, Azure Active Directory has outages on the Microsoft side of things. These outages really have a very big impact on the users, applications, and everything else because they are closely tied to the Azure AD ecosystem. So, whenever there is an outage, it is really difficult because all things start failing. This happens very rarely, but when it happens, there is a big impact."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"The licensing cost is a bit prohibitive."
"The cost of Entra ID depends entirely on our organization's specific needs and use cases."
"I think we're on the E3 — I think it was about 35 dollars per user."
"Licensing fees are paid monthly."
"The price is fine. It's a good value for the money compared with other solutions."
"Everything needs to be considered for the requirements and if it is within the budget, then you can come up with a solution, whether it is SaaS, PaaS, or IaaS."
"As a nonprofit, we have A5 licenses for nonprofits in education, so we at least have some reduced costs."
"Active Directory is bundled with a package of Microsoft services, so it doesn't cost much. I don't know about the individual license of Active Directory."
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Top Industries

By visitors reading reviews
Computer Software Company
15%
Financial Services Firm
12%
Manufacturing Company
11%
Healthcare Company
7%
Educational Organization
33%
Computer Software Company
10%
Financial Services Firm
8%
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?
Regarding pricing, the cost seems high for single sign-on, especially for external applications like Oracle.
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: February 2025.
842,466 professionals have used our research since 2012.