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AWS Directory Service vs Microsoft Entra External 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

AWS Directory Service
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
17th
Average Rating
8.6
Reviews Sentiment
7.3
Number of Reviews
15
Ranking in other categories
No ranking in other categories
Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
9th
Average Rating
7.6
Reviews Sentiment
5.6
Number of Reviews
14
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (21st)
 

Mindshare comparison

As of September 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of AWS Directory Service is 1.6%, down from 1.9% compared to the previous year. The mindshare of Microsoft Entra External ID is 2.4%, up from 1.1% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Market Share Distribution
ProductMarket Share (%)
Microsoft Entra External ID2.4%
AWS Directory Service1.6%
Other96.0%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

Basa Saiteja - PeerSpot reviewer
A valuable access management system with a user-friendly and straightforward setup
The solution is scalable, and we can scale according to our needs. I rate the scalability a nine out of ten. In our organization, our access to our AWS comes from IAM. We use AWS consoles using our credentials and don't have route access, so each person will log in through our IAM programmatic access, and everyone on our team can work on cloud. Over 10,000 people in our organization utilize the solution.
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

"AWS Directory Service is secure."
"AWS has eliminated the downtime we waste when our on-premises resources go down."
"I like the manageability. Activate Connect makes it easier to assign information and to manage the resources in the network."
"We like the fact that it's got such great redundancy."
"The most valuable feature of AWS Directory Service is cost-cutting features."
"Two-step authentication is very useful and important."
"The most valuable feature is ease of use."
"The solution integrates well with other tools, particularly through single sign-on, allowing users to connect to various applications using just one password, including email."
"The most valuable feature for me is the firewall capabilities."
"The best features of Microsoft Entra External ID include its unification of B2C functionality and B2E features."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"The experience has been rather good; there are other possibilities, but we made the choice to go with Microsoft, and we have a good experience with that."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"I have not encountered any stability issues with Microsoft Entra External ID."
"It's quite easy to manage and monitor."
 

Cons

"The solution lacks certain features."
"Accessing the data needs improvement."
"The group policy can be improved."
"Can be improved by including on-premises access for services through Identity Access Management."
"I would like to see better integration with other business solutions."
"I would like to grant partial access to a table contained in a database without having to provide full access to the whole database."
"Our only complaint is that you cannot integrate your Exchange server. Or, if you are planning to install an Exchange server on your Amazon EC2 instance, then you need to configure Active Directory on EC2 instance. We would like for this limitation to be lifted."
"AWS could improve the number of regions. Azure has passed them. The ned more consistency, as far as the Northeast is concerned."
"The cost is very high."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"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."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"There have been a couple of times when it was unavailable because of Microsoft issues, but other than that, I don't remember any problems."
"The authentication methods available are very limited, and this presents a weak point."
"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."
 

Pricing and Cost Advice

"The pricing depends because with AWS there are two types of directory objects: 30,000 and 500,000. It varies. AWS provides the pricing calculators so we can get an estimate from there as per the company requirement of how many users and objects that we need to create. So we can go to that portal, put in the data, and get the quotation. There are no extra licensing fees. It's all included."
"AWS' pricing is fair, and costs can be cut if you look carefully at when you're using it."
"We pay an annual subscription fee."
"The pricing is reasonable."
"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
11%
Healthcare Company
10%
Performing Arts
10%
Manufacturing Company
8%
Computer Software Company
16%
Manufacturing Company
9%
Financial Services Firm
9%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business6
Midsize Enterprise3
Large Enterprise4
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise5
 

Questions from the Community

What do you like most about AWS Directory Service?
The most valuable feature of AWS Directory Service is cost-cutting features.
What is your experience regarding pricing and costs for AWS Directory Service?
The pricing is very good because it is low and there is no management cost. You do not need to hire any system administrator to manage your Active Directory.
What needs improvement with AWS Directory Service?
Accessing the data needs improvement. Additionally, integration and compatibility with other AWS ( /products/amazon-aws-reviews ) services, network open LDAP, support for on-premise and cloud envir...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
Concerning the pricing or setup costs for Microsoft Entra External ID, based on my experience with Entra and 365 in general, it shouldn't require a whole education on their software. That's been a ...
What needs improvement with Microsoft Entra External ID?
I haven't utilized the adaptive authentication feature. We haven't used the customization capability for user journeys within the Microsoft Entra External ID. I don't have experience trying to crea...
What is your primary use case for Microsoft Entra External ID?
I'm more familiar with the Microsoft Entra External ID, the Active Directory external identities, because we have a hybrid environment. For the parts that I handle, the on-premise part is easier fo...
 

Also Known As

AWS Managed Microsoft AD
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Expedia, Intuit, Royal Dutch Shell, Brooks Brothers
Information Not Available
Find out what your peers are saying about AWS Directory Service vs. Microsoft Entra External ID and other solutions. Updated: July 2025.
867,349 professionals have used our research since 2012.