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Microsoft Defender for Cloud 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
7.3
Microsoft Defender for Cloud boosts security and efficiency, integrates with Azure, reduces costs, prevents breaches, and offers proactive defense.
Sentiment score
3.6
Users faced challenges with Microsoft Entra External ID but saved costs and time compared to traditional, on-premises solutions.
Defender proactively indexes and analyzes documents, identifying potential threats even when inactive, enhancing preventative security.
Identifying potential vulnerabilities has helped us avoid costly data losses.
The biggest return on investment is the rapid improvement of security posture.
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
6.5
Microsoft Defender for Cloud support is responsive at higher levels, but experiences vary with mixed satisfaction due to delays.
Sentiment score
4.6
Microsoft Entra External ID support varies; response times, documentation, and regional differences affect user satisfaction and solution accessibility.
Since security is critical, we prefer a quicker response time.
The support team was very responsive to queries.
They understand their product, but much like us, they struggle with the finer details, especially with new features.
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
7.7
Microsoft Defender for Cloud is scalable, integrating across environments effortlessly, suitable for all enterprise sizes with flexible performance.
Sentiment score
6.0
Microsoft Entra External ID offers scalable security for large enterprises, with distinct policies and strong performance despite some latency issues.
We are using infrastructure as a code, so we do not have any scalability issues with Microsoft Defender for Cloud implementation because our cloud automatically does it.
It has multiple licenses and features, covering infrastructures from a hundred to five hundred virtual machines, without any issues.
Defender won't replace our endpoint XDR, but it will likely adapt and support any growth in the Microsoft Cloud space.
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
7.6
Microsoft Defender for Cloud is stable and reliable, with minimal issues mainly during updates, ensuring strong user satisfaction.
Sentiment score
4.8
Microsoft Entra External ID is highly stable, reliable, and smooth, with minor rare issues, and positive user feedback.
Defender's stability has been flawless for us.
Microsoft Defender for Cloud is very stable.
Microsoft sometimes changes settings or configurations without transparency.
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 users seek better automation, clarity, integration, AI features, and comprehensive analytics for improved security management.
Microsoft Entra External ID needs improved support, integration, pricing, security, UI, and customization for medium-sized businesses.
Microsoft, in general, could significantly improve its communication and support.
It would be beneficial to streamline recommendations to avoid unnecessary alerts and to refine the severity of alerts based on specific environments or environmental attributes.
The artificial intelligence features could be expanded to allow the system to autonomously manage security issues without needing intervention from admins.
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 is scalable, offering free and paid versions with costs averaging $15 monthly per server.
Microsoft Entra External ID pricing is complex, potentially costly, but scalable, benefiting from Azure expertise and existing subscriptions.
Every time we consider expanding usage, we carefully evaluate the necessity due to cost concerns.
We appreciate the licensing approach based on employee count rather than a big enterprise license.
Microsoft Defender for Cloud is pricey, especially for Kubernetes clusters.
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 enhances security with AI-based threat detection, multi-cloud support, and a unified portal for comprehensive management.
Microsoft Entra External ID enhances security, management, and user experience through integration, single sign-on, and adaptive authentication features.
The most valuable feature for me is the variety of APIs available.
This feature significantly aids in threat detection and enhances the user experience by streamlining security management.
The most valuable feature is the recommendations provided on how to improve security.
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 Cloud
Ranking in Microsoft Security Suite
8th
Average Rating
8.0
Reviews Sentiment
7.0
Number of Reviews
79
Ranking in other categories
Vulnerability Management (7th), Container Management (9th), Container Security (7th), Cloud Workload Protection Platforms (CWPP) (1st), Cloud Security Posture Management (CSPM) (4th), Cloud-Native Application Protection Platforms (CNAPP) (4th), Data Security Posture Management (DSPM) (4th), Compliance Management (5th), Cloud Detection and Response (CDR) (2nd)
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 is 6.0%, down from 8.8% 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 Cloud6.0%
Microsoft Entra External ID1.3%
Other92.7%
Microsoft Security Suite
 

Featured Reviews

Vibhor Goel - PeerSpot reviewer
A single tool for complete visibility and addressing security gaps
Currently, issues are structured in Microsoft Defender for Cloud at severity levels of high, critical, or warning, but these severity levels are not always right. For example, Microsoft might consider a port being open as critical, but that might not be the case for our company. Similarly, it might suggest closing some management ports, but you might need them to be able to log in, so the severity levels for certain things can be improved. Even though Microsoft Defender for Cloud provides a way to temporarily disable certain alerts or notifications without affecting our security score, it would be better to have more granularized control over these recommendations. Currently, we cannot even disable certain alerts or notifications. There should be an automated mechanism to design Azure policies based on the recommendations, possibly with AI integration. Instead of an engineer having to write a policy to fix security gaps, which is very time-consuming, there should be an inbuilt capability to auto-remediate everything and have proper control in place. Additionally, enabling Defender for Cloud at the resource group level, rather than only at the subscription level, would be beneficial.
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
Financial Services Firm
13%
Computer Software Company
12%
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 Business26
Midsize Enterprise7
Large Enterprise45
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

How is Prisma Cloud vs Azure Security Center for security?
Azure Security Center is very easy to use, integrates well, and gives very good visibility on what is happening across your ecosystem. It also has great remote workforce capabilities and supports a...
What do you like most about Microsoft Defender for Cloud?
The entire Defender Suite is tightly coupled, integrated, and collaborative.
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

Microsoft Azure Security Center, Azure Security Center, Microsoft ASC, Azure Defender
Azure Active Directory External Identities
 

Interactive Demo

Demo not available
 

Overview

 

Sample Customers

Microsoft Defender for Cloud is trusted by companies such as ASOS, Vatenfall, SWC Technology Partners, and more.
Information Not Available
Find out what your peers are saying about Microsoft Defender for Cloud vs. Microsoft Entra External ID and other solutions. Updated: September 2025.
869,513 professionals have used our research since 2012.