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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)
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 (18th)
 

Mindshare comparison

As of January 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of IBM Cloud Identity Service is 0.9%, up from 0.4% compared to the previous year. The mindshare of Microsoft Entra External ID is 2.2%, up from 1.9% 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 ID2.2%
IBM Cloud Identity Service0.9%
Other96.9%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

reviewer1054431 - PeerSpot reviewer
Chief Technology Officer at a computer software company with 51-200 employees
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.
FS
Consultant at Artifield
Offers strong identity unification but needs better customization
Microsoft Entra External ID can be improved with additional features, specifically customizable flexibility and a customizable user interface for the login dialog. Currently, the login dialog has very limited customization options, which only include font styles, colors, text messages, or brand icons. Last month, Entra ID introduced some customizable features in their login dialog, but this does not apply to Microsoft Entra External ID, indicating a significant gap between the two. In theory, Entra External ID can support many external identity providers where custom login dialogs could be integrated, potentially via SSO feature coordination, although I have not yet confirmed this. Hence, enhanced customizable login options and the ability to use attribute password logins are critical features that are required for Microsoft Entra External ID to gain dominance in the authentication market.

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."
"It's quite easy to manage and monitor."
"The most valuable feature for me is the firewall capabilities."
"Microsoft Entra External ID offers numerous advantages; there's no need to maintain anything on-premises, which results in a significant IT infrastructure cost saving."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"The single sign-on access is the most useful feature we use."
"For policy management in my organization, I would say it is perfect."
"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 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."
 

Cons

"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."
"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."
"Technical support needs improvement."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"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."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"The authentication methods available are very limited, and this presents a weak point."
"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."
"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."
 

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
14%
Financial Services Firm
12%
Manufacturing Company
9%
Government
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
No data available
By reviewers
Company SizeCount
Small Business9
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: December 2025.
881,082 professionals have used our research since 2012.