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IBM Cloud Identity 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

IBM Cloud Identity Service
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
28th
Average Rating
8.0
Reviews Sentiment
6.5
Number of Reviews
3
Ranking in other categories
No ranking in other categories
Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
8th
Average Rating
7.6
Reviews Sentiment
5.5
Number of Reviews
16
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (21st)
 

Mindshare comparison

As of October 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of IBM Cloud Identity Service is 0.7%, up from 0.3% compared to the previous year. The mindshare of Microsoft Entra External ID is 2.4%, up from 1.3% 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%
IBM Cloud Identity Service0.7%
Other96.9%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

reviewer1054431 - PeerSpot reviewer
Excellent support, beneficial integration, and low maintenance
I have found IBM Cloud Identity Service to be highly scalable. It can handle thousands of users. IBM solutions are truly enterprise-grade. You don't find a lot of use cases for small businesses, or even sometimes medium businesses, the price point does not fit smaller businesses. The implementation effort, it's hard to find that cost-benefit.
Suresh Kumar Subramaniyan - PeerSpot reviewer
Has supported secure access but still lacks full coverage for external identity challenges
The user experience is acceptable, but Microsoft Entra External ID is not a full-fledged IGA solution. We use different products for complete Identity Governance Administration. Microsoft Entra External ID is suitable for small-scale enterprises implementing identity lifecycle management since most have Active Directory. However, there are several challenges. The out-of-the-box connector has limited features for applications, requiring us to build scheme connectors. While small-scale enterprises can benefit from Microsoft Entra External ID's Identity Governance solution, large-scale enterprises might need different tools from leading market vendors such as SailPoint or Saviynt. Customers face particular challenges with contractor and B2B accounts. Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory. There are delays in the identity lifecycle process, especially for contract partners during onboarding and off-boarding. This might be due to back-end syncing with Active Directory. B2B account removal and provisioning take considerable time. Access governance, particularly access certification for guest users, is time-consuming. Multi-factor authentication enforcement also presents challenges for external users.

Quotes from Members

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Pros

"One of the most valuable features of IBM Cloud Identity Service is that it delivers integrations with the commercial SaaS software that's available."
"It is stable. We can automate many of our daily operations with it, and we don't have to manage many things manually."
"It is multiple identity and access management, so all of the applications are valuable. It's also part of the automated process."
"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 most valuable feature for me is the firewall capabilities."
"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 most valuable feature for me is the firewall capabilities."
"It's quite easy to manage and monitor."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"The single sign-on access is the most useful feature we use."
 

Cons

"The initial setup is complex, it's not straightforward. It takes months because it's not straightforward."
"Everything can be more stable and secure. There could also be more account features. I would like to be able to do more things through it to manage users' accounts."
"IBM Cloud Identity Service is going in the right direction with the product. They need to keep building out the integrations and having the library is very critical."
"Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory."
"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."
"The only problem that you might face with Microsoft now is their complex licensing model."
"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."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"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."
 

Pricing and Cost Advice

"The price of the solution is expensive for non-enterprise companies. IBM's always going to be a little more expensive, you're going to be paying a premium. However, depending on the organization's needs, there's probably a benefit there to do even with the price being the way it is."
"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
No data available
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
9%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
No data available
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

Ask a question
Earn 20 points
What is your experience regarding pricing and costs for Microsoft Entra External ID?
The only problem that you might face with Microsoft now is their complex licensing model.
What needs improvement with Microsoft Entra External ID?
For the last four or five years, I have been in an IT manager function, focusing on making things happen and having technical persons execute tasks. In the last three months, I have transitioned to...
What is your primary use case for Microsoft Entra External ID?
I am looking for a new solution and investigating existing products. We are already working with Microsoft Intune and SOTI. I have been working in the past with a Kaseya product, specifically Datto...
 

Also Known As

No data available
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Baxter Healthcare, 
Information Not Available
Find out what your peers are saying about IBM Cloud Identity Service vs. Microsoft Entra External ID and other solutions. Updated: September 2025.
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