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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
6.8
Microsoft Defender boosts productivity and security, integrating seamlessly with Office tools for significant budget savings despite ROI challenges.
Sentiment score
3.6
Users faced challenges with Microsoft Entra External ID but saved costs and time compared to traditional, on-premises solutions.
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.
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.
Companies can leverage it for setting up external identities without needing to develop their own solutions.
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.
 

Customer Service

Sentiment score
5.5
Users have mixed reviews of Microsoft Defender's support, noting contact difficulties and inconsistent technical assistance despite good onboarding.
Sentiment score
4.6
Microsoft Entra External ID support varies; response times, documentation, and regional differences affect user satisfaction and solution accessibility.
It is rated ten out of ten for its quality and assistance.
The onboarding support is exceptional, ensuring seamless integration and implementation.
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.
The support for business applications, infrastructure support, and Entra has been mostly positive with highly skilled technicians.
The documentation is very thorough, reducing the need for support.
 

Scalability Issues

Sentiment score
8.3
Microsoft Defender for Business is scalable and effective across diverse environments, though special configurations might impact growth speed.
Sentiment score
6.0
Microsoft Entra External ID offers scalable security for large enterprises, with distinct policies and strong performance despite some latency issues.
The cloud-based nature of the solution ensures high scalability.
The scalability of Microsoft Defender for Business is rated as ten, indicating it is very scalable.
In terms of scalability, I would rate Microsoft Defender for Business a ten.
This is one of EID's weak points compared to Azure AD B2C, which offers customizable authentication options, including attribute and password combinations.
End-user workloads experience increased latency in a cloud environment compared to on-premises resources.
Microsoft Entra External ID is quite scalable, and I would rate its scalability between eight and nine out of ten.
 

Stability Issues

Sentiment score
7.2
Microsoft Defender for Business is stable and reliable, with minimal crashes, but some report occasional bugs impacting stability.
Sentiment score
4.8
Microsoft Entra External ID is highly stable, reliable, and smooth, with minor rare issues, and positive user feedback.
No customer complaints about its functionality or reliability.
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.
I'd rate the stability of the Microsoft Entra External ID as a 10.
The stability of this solution is very good.
I have not encountered any stability issues with Microsoft Entra External ID.
 

Room For Improvement

Microsoft Defender for Business needs better reporting, integration, simplified interface, and enhanced features to address various limitations and concerns.
Microsoft Entra External ID needs improved support, integration, pricing, security, UI, and customization for medium-sized businesses.
Microsoft should provide batch management solutions with the application, integrating pass management with roles.
Features related to Advanced Persistent Threat detection vectors and cyber kill chain integrations are not available out-of-the-box.
There can be improvements in the user interface to make it more intuitive.
This is particularly challenging during enterprise agreement renewals, as it's difficult for customers to review costs leading to lengthy negotiations.
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.
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.
 

Setup Cost

Microsoft Defender for Business offers competitive pricing with enterprise value, though some users find costs high compared to competitors.
Microsoft Entra External ID pricing is complex, potentially costly, but scalable, benefiting from Azure expertise and existing subscriptions.
Single-year pricing remains good.
The pricing is quite affordable at the enterprise level with no extra expenses noted.
Although the cost can be slightly higher, it expedites deployment, which is beneficial, especially for startups.
Regarding pricing, the cost seems high for single sign-on, especially for external applications like Oracle.
Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options.
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.
 

Valuable Features

Microsoft Defender for Business integrates seamlessly with Microsoft products, offering comprehensive security, scalability, and user-friendly features for effective threat management.
Microsoft Entra External ID enhances security, management, and user experience through integration, single sign-on, and adaptive authentication features.
The threat detection capabilities are robust, with a dedicated research team and a continuously updated threat feed.
Its vulnerability management is regarded as one of the best in the industry.
The most effective features of Microsoft Defender for Business include its threat detection and response capabilities in managing vulnerabilities and ransomware attacks.
It is crucial for hybrid environments, especially for integrating existing on-site infrastructures with cloud-based Active Directory, such as in Office 365 implementations.
EID unifies workforce users with external business partners, which is a very strong feature.
The detailed monitoring and reporting in Microsoft Entra External ID support compliance efforts effectively.
 

Categories and Ranking

Microsoft Defender for Busi...
Ranking in Microsoft Security Suite
15th
Average Rating
7.8
Reviews Sentiment
6.9
Number of Reviews
19
Ranking in other categories
Endpoint Protection Platform (EPP) (18th)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
21st
Average Rating
7.6
Reviews Sentiment
5.5
Number of Reviews
16
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (8th), Customer Identity and Access Management (CIAM) (4th)
 

Mindshare comparison

As of October 2025, in the Microsoft Security Suite category, the mindshare of Microsoft Defender for Business is 3.5%, up from 2.9% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.3%, up from 0.3% 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 ID1.3%
Other95.2%
Microsoft Security Suite
 

Featured Reviews

Takayuki-Umehara - PeerSpot reviewer
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.
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.
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Top Industries

By visitors reading reviews
Computer Software Company
19%
Comms Service Provider
8%
Government
6%
Retailer
6%
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
9%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business15
Midsize Enterprise2
Large Enterprise3
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What do you like most about Microsoft Defender for Business?
A few things are valuable. One is the alerting we see when any kind of intrusion is happening, any kind of malware is being deployed across the endpoints, or any kind of suspicious activity is goin...
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?
Microsoft Defender for Business could improve by offering more of their offerings available in the basic tenants since not everyone has a budget for higher-level licenses, but everyone needs securi...
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: September 2025.
869,513 professionals have used our research since 2012.