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AWS Directory Service vs Microsoft Entra External ID comparison

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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)
19th
Average Rating
8.6
Reviews Sentiment
7.1
Number of Reviews
16
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
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (14th)
 

Mindshare comparison

As of November 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of AWS Directory Service is 1.0%, down from 1.3% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.6%, down from 2.5% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Mindshare Distribution
ProductMindshare (%)
Microsoft Entra External ID1.6%
AWS Directory Service1.0%
Other97.4%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

Akram Zaki - PeerSpot reviewer
IT Specialist at FlairsTech
Hybrid directory service has streamlined global server access and supported reliable daily operations
Some features in AWS Directory Service are not automated and are not scriptable, so they require manual work. In today's world where everything is pretty much automated and scriptable using AI, this is a downside. The price is another concern. AWS is really expensive. They provide an awesome service in general, but it's still expensive, very expensive. AD Connector is an application which connects my own Active Directory to AWS Directory Service or AWS infrastructure. There is a bit of latency which is bound by the AD Connector availability. If the AD Connector is having issues, there is a bit of latency, but in general, it's way better than Microsoft Azure. Still, it could be better. The migration was a bit challenging and required intensive planning and migration time. That is always a hassle. No matter which cloud environment you're moving into, the migration is sensitive because you're generally moving from on-premise to a cloud environment, so there is downtime and there are unexpected issues and errors. It needs very careful planning before doing the migration itself. AWS Directory Service is lacking a few things which could be better. Single sign-on federation is missing. SCIM provisioning is not available. In my company, we use other services for SSO federation, SCIM provisioning, and authentication because of these gaps. I would like AWS Directory Service to enroll a multi-factor authentication method. I would like to have an SSO federation where users, if we're hosting applications in AWS, would not need to log in to each application. Single sign-on would log in the user to their account and from there they can open all their applications without requiring a login each time. One of the other cons in AWS is that directories cannot span multiple regions because it's a region-bound architecture. This requires several directories for multi-region deployment. This is the case on my end because my company has several branches all over the world, so it requires several deployments.
Sameh Andrawes - PeerSpot reviewer
IT Manager at Alex Apparels
Identity platform has strengthened policy control, security monitoring, and user management
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything that I consider a problem or disadvantage. If we apply more features, let's say we applied mobile device management for a few machines, a few mobiles, and some computers, and it worked, but I do not know what will happen when we apply this to the rest of the network, which is 1,500 computers and more than 2,000 mobiles. I do not know what to say regarding new features that could be added to Microsoft Entra External ID. Perhaps we can integrate this with our ERP systems for the HR systems that we are going to have. Perhaps with this integration, we can find this application more practical.

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 of this solution is the security of my customers and my customers' customers."
"Provides good performance and availability."
"AWS handles everything on the backend requiring minimal legwork from our team. We only require a dedicated database administrator while depending on Amazon for RDS."
"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."
"This is a managed directory service (by AWS) that offers a hands-free solution for our team as we are not required to hire or train people to manage Active Directory features and high availability backups, there is no security patching required on an operating system level or Active Directory malware attack, and we are able to easily integrate other AWS services."
"The most valuable feature is ease of use."
"We like the fact that it's got such great redundancy."
"What we appreciate most about AWS Directory Service is the high availability."
"I have not encountered any stability issues with Microsoft Entra External ID."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"For policy management in my organization, I would say it is perfect."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"The most valuable feature for me is the firewall capabilities."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"The single sign-on access is the most useful feature we use."
 

Cons

"I've encountered challenges, particularly with Amazon WorkDocs, which is being deprecated. This has made it necessary to find an alternative document management solution that can handle editing, sharing, and workflow management for documents like Word files and PDFs."
"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 AWS Directory Service should be easier to integrate."
"Currently, there is no option to integrate our on-premises Cisco AWS Directory Service, requiring some manual configuration. If AWS Active Directory Service provided additional domain controller functionalities, like other on-premises Active Directory, it would be very helpful."
"To get CloudWatch to monitor your memory and storage, you have to do some configuration within your server, which sometimes results in errors."
"Can be improved by including on-premises access for services through Identity Access Management."
"I'd rate the solution at a six out of ten, simply based on the cost. It's very expensive."
"Technical support needs improvement."
"The authentication methods available are very limited, and this presents a weak point."
"I would like to see faster synchronization."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"As of latest, when it comes to my experience, I am not satisfied."
"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 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."
 

Pricing and Cost Advice

"The pricing is reasonable."
"We pay an annual subscription fee."
"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 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
Manufacturing Company
11%
Computer Software Company
10%
Performing Arts
9%
Government
8%
Financial Services Firm
13%
Manufacturing Company
11%
Outsourcing Company
10%
Computer Software Company
9%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business6
Midsize Enterprise3
Large Enterprise5
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

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?
Some features in AWS Directory Service are not automated and are not scriptable, so they require manual work. In today's world where everything is pretty much automated and scriptable using AI, thi...
What advice do you have for others considering AWS Directory Service?
I would like AWS Directory Service to enroll a multi-factor authentication method. I would like to have an SSO federation where users, if we're hosting applications in AWS, would not need to log in...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
Microsoft is flexible in the pricing for the product, so I cannot say that it is expensive, but definitely they are flexible in the price lists and their ways of doing payments.
What needs improvement with Microsoft Entra External ID?
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything...
What is your primary use case for Microsoft Entra External ID?
When I say identity, I mean Microsoft Entra External ID. We have been using Microsoft Entra External ID since the beginning of 2022. I am using it as a client. The purposes for using Microsoft Entr...
 

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: September 2026.
920,929 professionals have used our research since 2012.