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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)
21st
Ranking in Microsoft Security Suite
33rd
Average Rating
7.4
Reviews Sentiment
6.1
Number of Reviews
3
Ranking in other categories
Customer Identity and Access Management (CIAM) (11th)
Microsoft Entra ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
1st
Ranking in Microsoft Security Suite
4th
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 January 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.8%, up from 0.8% compared to the previous year. The mindshare of Microsoft Entra ID is 33.6%, up from 28.9% 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

Oluwakorede Oladipo - PeerSpot reviewer
Promotes centralized user management and easy to setup
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. In Azure, you can set up access rules. Just because an app is linked to Active Directory doesn’t mean everyone can access it automatically. You can make it so users have to give consent before getting access. You can also control which apps can connect to Active Directory. For Microsoft Exchange, we use multi-factor authentication to protect our information, which helps keep it secure by requiring more than just a password to log in. Centralizing user management has positively impacted our operational costs and efficiency. We no longer need multiple systems to manage users, especially in our SaaS applications. This has improved turnaround time for user management tasks and streamlined our processes, making things more efficient. We use the SaaS version, so there's no on-premises infrastructure. The integration is mainly done through setup, linking it to our domain and Active Directory.
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."
"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 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."
"This solution is less time-consuming. We don't have to hire as many resources to give permissions to a particular user or group for any application."
"We like the ease of app registrations and single sign-on with Entra ID. It offers an easy way to add multi-factor authentication to nearly any application and system."
"Azure AD has features that have helped improve our security posture."
"Being able to use Azure AD means that you can use some of the Azure AD security features like Advanced Password Protection. As well as querying your normal password requirements like lengths and complexity, Azure AD has a feature in which you can put specific words. It can be words to do with your company, words to do with your company location, or words that a lot of your employees would otherwise use. You can disallow them. It's very good at making more obvious passwords, ones they're not allowed to use anymore. That's a good feature."
"Azure Active Directory has many automation capabilities, and you can apply policies on top. You can do a lot of things with these combinations and integrate other tools like PingFederate."
"Microsoft Entra ID has streamlined and centralized our device management and threat response processes."
"I would rate Microsoft Entra ID a solid 10 out of 10."
"The cloud security part is very valuable. Security is the most important thing in today's world. With Azure Active Directory, there are some features that tell you how you need to improve your security level. It informs you if you set up certain policies, e.g., this is where my users sign in. It tends to let you know if your organization has been breached with this security set up. Therefore, it is easier to know when you have been breached, especially if you set up a Conditional Access policy for your organization."
 

Cons

"Technical support needs improvement."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"I would like to see faster synchronization."
"The security policy of Azure Active Directory should be based on a matrix so that we can easily visualize which users have access to what."
"Microsoft Authenticator is as easy as Google Authenticator, but it is not open to all types of applications. Google Authenticator is integrated with other third-party platforms and applications, whereas Microsoft Authenticator is not. It should have more integration with third-party platforms and applications."
"An area where there is room for improvement is the ease of use of the dashboards."
"I think the solution can improve by making the consumption of that data easier for our customers."
"Compared to what we can do on-prem, Azure AD lacks a feature for multiple hierarchical groups. For example, Group A is part of group B. Group B is part of group C. Then, if I put someone into group A, which is part of already B, they get access to any system that group B has access to, and that provisioning is automatically there."
"A recent incident we dealt with took four months to resolve with a seven-day deadline, which was quite frustrating."
"We would like to see more system updates."
"The documentation could be better."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"I do not have experience with pricing."
"Pricing could always be better. You pay the premium for Microsoft. Sometimes, it is worth it, and at other times, you wish to have more licensing options, especially for smaller companies."
"There are add-on components and services, such as identity services, that we have to add to our Azure subscription. Only then can I actually say it's on par with the on-prem server edition. Why should I pay for a component? It should be included in my subscription."
"The solution has three types of tiers: E1 has very basic features. You get limited stuff in E2 and cannot have Office 360 associated with it. E3 is on the costly side and has all the features."
"We are currently on the education plan, so the price is slightly better than the development plan."
"The P1 version costs $6 per user per month."
"The solution costs us 60,000 Rupees annually, just over $700, and there are no additional costs."
"Licensing is easy."
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Financial Services Firm
12%
Manufacturing Company
10%
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
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 problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses. When you move beyond a small team and start growing, the...
What is your primary use case for Microsoft Entra External ID?
We had a project to integrate our Active Directory, which was running on our site, and invite external collaborators, such as freelancers, to connect to our domain via an invitation. Additionally, ...
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
 

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Interactive Demo

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Sample Customers

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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.
831,265 professionals have used our research since 2012.