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Microsoft Defender for Business vs Microsoft Entra External ID comparison

 

Comparison Buyer's Guide

Executive Summary

Review summaries and opinions

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

ROI

Sentiment score
6.1
Microsoft Defender for Business improves security, enhances productivity, and reduces costs but may have delays in financial returns.
Sentiment score
4.0
Organizations saved time and costs with Microsoft Entra External ID, despite varied productivity impacts and integration learning curves.
Using Microsoft Defender for Business results in cost reductions as it consolidates various features under one product, saving around 20% to 30% of the budget.
Consultant at Dell Technologies
The value I see in Microsoft Defender for Business is in its ability to track and respond to application usage and security threats through its CASB and automation features, which are cost-beneficial.
It has led to cost savings as well as time savings because I can use a single solution for all applications.
Associate Director Automation at Dubai Holding
Companies can leverage it for setting up external identities without needing to develop their own solutions.
Lead Enterprise Architect at DigyCorp
In terms of return on investment, prior to using this product, our company managed our own mail server with all internal authentication happening on premises, resulting in a ROI in the thousands every year.
Network Security Administrator at a retailer with 51-200 employees
 

Customer Service

Sentiment score
5.2
Microsoft Defender for Business support is efficient but inconsistent, with variable responsiveness and differing opinions on staff knowledge and resolution times.
Sentiment score
4.9
Microsoft Entra External ID support experiences are mixed, with praise for knowledgeable staff but concerns about continuity and accessibility.
It is rated ten out of ten for its quality and assistance.
Solution Consultant at BIM Group of Companies
The onboarding support is exceptional, ensuring seamless integration and implementation.
Chief Cybersecurity Architect at cytek-security
Faster support is needed for endpoint security solutions.
Companies without a Microsoft license for Entra ID or Azure portal cannot add Azure AD B2C, creating logistical issues for some of my clients who are unable to evaluate the platform.
Consultant at Artifield
The support for business applications, infrastructure support, and Entra has been mostly positive with highly skilled technicians.
Sales Manager - Program Manger at Altitudo srl
The documentation is very thorough, reducing the need for support.
Cloud Security Consultant at a manufacturing company with 10,001+ employees
 

Scalability Issues

Sentiment score
7.6
Microsoft Defender for Business offers scalable, cloud-driven security for diverse organizations, adaptable to various configurations and endpoint quantities.
Sentiment score
6.2
Microsoft Entra External ID offers scalability and flexibility but faces latency issues and lacks some authentication methods.
The cloud-based nature of the solution ensures high scalability.
Solution Consultant at BIM Group of Companies
The scalability of Microsoft Defender for Business is rated as ten, indicating it is very scalable.
Consultant at Dell Technologies
In terms of scalability, I would rate Microsoft Defender for Business a ten.
Public Cloud Engineer at Prudential
This is one of EID's weak points compared to Azure AD B2C, which offers customizable authentication options, including attribute and password combinations.
Consultant at Artifield
End-user workloads experience increased latency in a cloud environment compared to on-premises resources.
Director at iicon ltd
Microsoft Entra External ID is quite scalable, and I would rate its scalability between eight and nine out of ten.
Lead Enterprise Architect at DigyCorp
 

Stability Issues

Sentiment score
7.2
Microsoft Defender for Business is highly rated for stability, despite minor errors and complexity issues not significantly impacting confidence.
Sentiment score
5.2
Microsoft Entra External ID is a stable SaaS, rated 8-10/10, with minimal downtime, reliable except for occasional external issues.
No customer complaints about its functionality or reliability.
Solution Consultant at BIM Group of Companies
Although it generally works, there are occasional issues and errors that sometimes require a complete system format to rectify.
I would rate the stability of Microsoft Defender for Business with a three out of ten, where one is very bad.
Public Cloud Engineer at Prudential
I'd rate the stability of the Microsoft Entra External ID as a 10.
Director of Technology at a hospitality company with 51-200 employees
The stability of this solution is very good.
Associate Director Automation at Dubai Holding
I have not encountered any stability issues with Microsoft Entra External ID.
Lead Enterprise Architect at DigyCorp
 

Room For Improvement

Microsoft Defender for Business needs improved reporting, threat protection, support, and integration, with attention to pricing and update communication.
Microsoft Entra External ID needs cost reduction, faster sync, better security, improved SSO, UI, integration, support, and pricing clarity.
Microsoft should provide batch management solutions with the application, integrating pass management with roles.
Solution Consultant at BIM Group of Companies
Features related to Advanced Persistent Threat detection vectors and cyber kill chain integrations are not available out-of-the-box.
CISO at a financial services firm with 11-50 employees
There can be improvements in the user interface to make it more intuitive.
Information Technology Security Consultant at Navaio IT Security
This is particularly challenging during enterprise agreement renewals, as it's difficult for customers to review costs leading to lengthy negotiations.
Sales Manager - Program Manger at Altitudo srl
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.
Consultant at Artifield
I would like to see a more detailed alert system that provides a summary of why alerts are generated, who is generating them, and the reasons behind it.
Cloud Security Consultant at a manufacturing company with 10,001+ employees
 

Setup Cost

Microsoft Defender for Business offers integrated security in Office 365, with competitive pricing but some note higher costs than competitors.
Microsoft Entra External ID pricing varies, cost-effective for some, expensive for others, challenging cloud transition impacts evaluation.
Single-year pricing remains good.
Solution Consultant at BIM Group of Companies
The pricing is quite affordable at the enterprise level with no extra expenses noted.
Consultant at Dell Technologies
Although the cost can be slightly higher, it expedites deployment, which is beneficial, especially for startups.
CISO at a financial services firm with 11-50 employees
Regarding pricing, the cost seems high for single sign-on, especially for external applications like Oracle.
Associate Director Automation at Dubai Holding
Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options.
Director at iicon ltd
The cost can be a factor for Microsoft Entra External ID, but in general, it offers a scalable and efficient solution compared to deploying individual solutions.
Lead Enterprise Architect at DigyCorp
 

Valuable Features

Microsoft Defender for Business provides robust, scalable security with seamless Azure integration and effective threat management at a cost-effective price.
Microsoft Entra External ID enhances security and efficiency by simplifying identity management and integration without on-premises infrastructure.
The threat detection capabilities are robust, with a dedicated research team and a continuously updated threat feed.
Information Technology Security Consultant at Navaio IT Security
Its vulnerability management is regarded as one of the best in the industry.
Solution Consultant at BIM Group of Companies
The most effective features of Microsoft Defender for Business include its threat detection and response capabilities in managing vulnerabilities and ransomware attacks.
Consultant at Dell Technologies
It is crucial for hybrid environments, especially for integrating existing on-site infrastructures with cloud-based Active Directory, such as in Office 365 implementations.
Director at iicon ltd
EID unifies workforce users with external business partners, which is a very strong feature.
Consultant at Artifield
The detailed monitoring and reporting in Microsoft Entra External ID support compliance efforts effectively.
Manager, Identity & Access Management at a financial services firm with 10,001+ employees
 

Categories and Ranking

Microsoft Defender for Busi...
Ranking in Microsoft Security Suite
16th
Average Rating
7.8
Reviews Sentiment
6.6
Number of Reviews
20
Ranking in other categories
Endpoint Protection Platform (EPP) (18th)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
18th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (9th), Customer Identity and Access Management (CIAM) (4th)
 

Mindshare comparison

As of January 2026, in the Microsoft Security Suite category, the mindshare of Microsoft Defender for Business is 3.5%, up from 3.0% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.6%, up from 0.5% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite Market Share Distribution
ProductMarket Share (%)
Microsoft Defender for Business3.5%
Microsoft Entra External ID1.6%
Other94.9%
Microsoft Security Suite
 

Featured Reviews

Takayuki-Umehara - PeerSpot reviewer
Public Cloud Engineer at Prudential
Product deployment protects assets but needs improvement in system support
I am doing maintenance for Microsoft Defender for Business, and I'm currently working with it. We don't need to use the latest version of Microsoft Defender for Business. We still use the latest virus definition file that Microsoft Defender for Business has automatically updated. We implement a basic update mechanism. Our compliance division manages how many servers and PCs we have and whether those servers have antivirus solutions. I am not certain about how Microsoft Defender for Business helps with AI-driven security strategies. I just use it normally and don't know if it uses AI technology. I rate Microsoft Defender for Business a six out of ten.
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.
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Comms Service Provider
8%
Government
6%
Financial Services Firm
6%
Computer Software Company
14%
Financial Services Firm
12%
Manufacturing Company
9%
Government
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business15
Midsize Enterprise2
Large Enterprise4
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What is your experience regarding pricing and costs for Microsoft Defender for Business?
Our thoughts on the pricing for Microsoft Defender for Business are that we wish it could be better. If the pricing was a little better, we would definitely increase what we currently have.
What needs improvement with Microsoft Defender for Business?
I see room for improvement in Microsoft Defender for Business, particularly regarding the consolidation of all security solutions in one place and the integration of AI and data security into the s...
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

Find out what your peers are saying about Microsoft Defender for Business vs. Microsoft Entra External ID and other solutions. Updated: December 2025.
881,082 professionals have used our research since 2012.