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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)
30th
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)
10th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (5th), Microsoft Security Suite (16th)
 

Mindshare comparison

As of August 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 0.5% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.6%, down from 2.6% 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%
IBM Cloud Identity Service0.9%
Other97.5%
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 multiple identity and access management, so all of the applications are valuable. It's also part of the automated process."
"It is stable. We can automate many of our daily operations with it, and we don't have to manage many things manually."
"IBM Cloud Identity Service is highly stable."
"One of the most valuable features of IBM Cloud Identity Service is that it delivers integrations with the commercial SaaS software that's available."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"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."
"I have not encountered any stability issues with Microsoft Entra External ID."
"It's similar to using a Microsoft account to create accounts on other websites. We are also using Microsoft Entra to monitor which applications our guests are using. This allows us to filter, block, or adjust permissions for these applications as needed for our collaborators."
"The times that I have gone into it, I found it easy to use and I haven't had any issues with it."
"The single sign-on access is the most useful feature we use."
"The most valuable feature for me is the firewall capabilities."
 

Cons

"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."
"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."
"The cost is very high."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"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."
"I would like to see faster synchronization."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"Technical support needs improvement."
"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."
 

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
Financial Services Firm
13%
Computer Software Company
10%
Manufacturing Company
9%
Outsourcing Company
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

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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

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: August 2026.
909,725 professionals have used our research since 2012.