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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)
31st
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)
9th
Average Rating
7.6
Reviews Sentiment
5.8
Number of Reviews
13
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (21st)
 

Mindshare comparison

As of August 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of IBM Cloud Identity Service is 0.5%, up from 0.4% compared to the previous year. The mindshare of Microsoft Entra External ID is 2.1%, up from 1.2% 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

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.
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

"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."
"One of the most valuable features of IBM Cloud Identity Service is that it delivers integrations with the commercial SaaS software that's available."
"I have not encountered any stability issues with Microsoft Entra External ID."
"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."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"Microsoft Entra External ID is more secure, offering a secure environment."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The single sign-on access is the most useful feature we use."
 

Cons

"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."
"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."
"The initial setup is complex, it's not straightforward. It takes months because it's not straightforward."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"The support engineers are not as skilled as our engineers. When they say something would not work, or there is no solution, we usually hear that Microsoft would not support this."
"The authentication methods available are very limited, and this presents a weak point."
"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 problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"I would like to see faster synchronization."
 

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
10%
Manufacturing Company
8%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
No data available
 

Questions from the Community

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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

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: July 2025.
865,384 professionals have used our research since 2012.