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Microsoft Defender for Cloud Apps 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
7.7
Microsoft Defender for Cloud Apps enhances security, reduces costs by 35-45%, and improves uptime with efficient cloud application management.
Sentiment score
3.6
Users faced challenges with Microsoft Entra External ID but saved costs and time compared to traditional, on-premises solutions.
The biggest return on investment so far has been visibility, knowing what we have in our environment.
As a small team, Microsoft Defender for Cloud Apps allowed us to manage systems with just one or two people.
We have at least saved the costs we had from the Netskope solution this year.
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
7.0
Microsoft Defender for Cloud Apps support is generally good, but users suggest faster responses and improved communication.
Sentiment score
4.6
Microsoft Entra External ID support varies; response times, documentation, and regional differences affect user satisfaction and solution accessibility.
Their customer service is pretty good, but it's frustrating to go through three or four channels before reaching the right person.
The support is excellent, and the speed of response is commendable.
There were instances where the engineers were knowledgeable and helpful, but at other times it felt like a ping pong game, with unnecessary transfers until the right person was found.
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
7.6
Microsoft Defender for Cloud Apps offers scalable security, efficiently managing large user bases and app integrations with centralized management.
Sentiment score
6.0
Microsoft Entra External ID offers scalable security for large enterprises, with distinct policies and strong performance despite some latency issues.
For what I know about the log collector and how much data it can take in, it is super scalable and capable of handling high workloads.
Microsoft Defender for Cloud Apps is very scalable, provided you have the right subscription.
In my experience, Microsoft Defender for Cloud Apps is good enough for small to medium businesses.
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
8.1
Microsoft Defender for Cloud Apps is praised for high reliability, minimal downtime, consistent performance, and swift issue resolution.
Sentiment score
4.8
Microsoft Entra External ID is highly stable, reliable, and smooth, with minor rare issues, and positive user feedback.
I would rate it a ten because I have not experienced any stability issues so far with Defender for Cloud Apps.
I would assess the stability and reliability of Microsoft Defender for Cloud Apps as stable
My impression on the stability and reliability of Microsoft Defender for Cloud Apps is that it is very stable.
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 Cloud Apps could improve integration, pricing, support, reporting, automation, alerts, and overall user experience across multi-cloud environments.
Microsoft Entra External ID needs improved support, integration, pricing, security, UI, and customization for medium-sized businesses.
For data loss prevention, it would be useful to be able to drill down into the kind of data being transferred over CloudApp.
Defender typically connects to Entra ID, but we have local users on the cloud for database access, SSH, or RDS, and there is nothing produced by Defender regarding those local IAM users.
A significant improvement I would like to see is the integration into a single pane of glass.
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 Cloud Apps is cost-effective within Microsoft 365 bundles, especially for large organizations with discounts available.
Microsoft Entra External ID pricing is complex, potentially costly, but scalable, benefiting from Azure expertise and existing subscriptions.
The pricing for Microsoft Defender for Cloud Apps is acceptable.
My organization is currently revisiting pricing, but previously, the cost was a bit expensive, yet comparable to other solutions with similar functionalities and features.
It's not the cheapest, but also not the most expensive, placing it in the mid-level range.
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 Cloud Apps offers integration, threat detection, and management, enhancing security with comprehensive visibility and proactive assessment.
Microsoft Entra External ID enhances security, management, and user experience through integration, single sign-on, and adaptive authentication features.
The ability to sanction unsanctioned apps using Secure Score benchmarking, included in Cloud, is also beneficial.
Microsoft Defender for Cloud Apps is very comprehensive, providing a complete 360-degree view of applications within an organization.
The most valuable features of Microsoft Defender for Cloud Apps include live, up-to-date information, which provided real-time alerts.
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 Clou...
Ranking in Microsoft Security Suite
12th
Average Rating
8.4
Reviews Sentiment
7.3
Number of Reviews
40
Ranking in other categories
Cloud Access Security Brokers (CASB) (4th), Advanced Threat Protection (ATP) (14th)
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 Cloud Apps is 3.2%, up from 1.9% 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 Cloud Apps3.2%
Microsoft Entra External ID1.3%
Other95.5%
Microsoft Security Suite
 

Featured Reviews

Abdulrahman Muhammadi - PeerSpot reviewer
Integration with existing cloud workflows has simplified compliance and threat detection
Licensing cost is a significant concern. With Defender Plan 1, Microsoft Defender for Cloud Apps comes with a pay-per-use model. Each feature has its own pricing when activated on VMs. For example, the vulnerability assessment has separate pricing, the base model including encryptions has separate pricing, and the compliance features have separate pricing. This applies to each VM and Azure resource individually. It is not straightforward where you can take one license and apply it to everything. Each feature has its own pricing model which can be tedious, as the costs keep accumulating. The only lacking feature currently is XDR (extended detection and response). Apart from that, I have only positive experiences with the whole Microsoft suite, except for the pricing structure.
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
12%
Financial Services Firm
10%
Manufacturing Company
9%
Government
7%
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 Business13
Midsize Enterprise10
Large Enterprise18
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

Which is the better security solution - Cisco Umbrella or Microsoft Cloud App Security?
Cisco Umbrella is an integral component of the Cisco SASE architecture. It integrates security in a single, cloud-native solution, unifying multiple features like DNS-layer security, threat intelli...
What do you like most about Microsoft Cloud App Security?
It does a great job of monitoring and maintaining a security baseline. For us, that is a key element. The notifications are pretty good.
What is your experience regarding pricing and costs for Microsoft Cloud App Security?
At the time of implementation, when the size of our organization was small, it was a more affordable product. Since all our productivity applications were on O365, Microsoft Defender for Cloud Apps...
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

MS Cloud App Security, Microsoft Cloud App Security
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Customers for Microsoft Defender for Cloud Apps include Accenture, St. Luke’s University Health Network, Ansell, and Nakilat.
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Find out what your peers are saying about Microsoft Defender for Cloud Apps vs. Microsoft Entra External ID and other solutions. Updated: September 2025.
869,202 professionals have used our research since 2012.