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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
6.9
Microsoft Defender for Cloud boosts security and efficiency, integrates with Azure, reduces costs, prevents breaches, and offers proactive defense.
Sentiment score
4.0
Organizations saved time and costs with Microsoft Entra External ID, despite varied productivity impacts and integration learning curves.
Defender proactively indexes and analyzes documents, identifying potential threats even when inactive, enhancing preventative security.
Endpoint management at a government with 10,001+ employees
Identifying potential vulnerabilities has helped us avoid costly data losses.
Manager at CBTS
Compared to not having Microsoft Defender for Cloud in place, we definitely saw an advantage by not having downtime due to a security threat.
Principal Microsoft Consultant at MicroAge
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
6.3
Microsoft Defender for Cloud support is responsive at higher levels, but experiences vary with mixed satisfaction due to delays.
Sentiment score
4.9
Microsoft Entra External ID support experiences are mixed, with praise for knowledgeable staff but concerns about continuity and accessibility.
Since security is critical, we prefer a quicker response time.
Manager at CBTS
The support team was very responsive to queries.
Programme Manager- Cyber Fusion- Group CISO at a financial services firm with 10,001+ employees
They understand their product, but much like us, they struggle with the finer details, especially with new features.
Endpoint management at a government with 10,001+ employees
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
7.4
Microsoft Defender for Cloud is scalable, integrating across environments effortlessly, suitable for all enterprise sizes with flexible performance.
Sentiment score
6.2
Microsoft Entra External ID offers scalability and flexibility but faces latency issues and lacks some authentication methods.
As we have reduced our on-premises infrastructure, it is about how we can migrate workloads to the cloud to make it easier, and then having everything fully encompassed and secured within that area makes it much easier for us to scale as needed and grow.
Principal Microsoft Consultant at MicroAge
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.
Senior Cloud Platform Engineer at Deutsche Börse
It has multiple licenses and features, covering infrastructures from a hundred to five hundred virtual machines, without any issues.
Snr. Infrastructure Architect (Data Centre) at LogicEra
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
7.5
Microsoft Defender for Cloud is stable and reliable, with minimal issues mainly during updates, ensuring strong user satisfaction.
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.
Defender's stability has been flawless for us.
Engineer at a computer software company with 201-500 employees
Microsoft Defender for Cloud is very stable.
Cloud architect at a tech vendor with 1,001-5,000 employees
Microsoft sometimes changes settings or configurations without transparency.
Senior Cloud Platform Engineer at Deutsche Börse
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 Cloud users seek better automation, clarity, integration, AI features, and comprehensive analytics for improved security management.
Microsoft Entra External ID needs cost reduction, faster sync, better security, improved SSO, UI, integration, support, and pricing clarity.
Microsoft, in general, could significantly improve its communication and support.
Endpoint management at a government with 10,001+ employees
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.
Works at Coca-Cola HBC
The artificial intelligence features could be expanded to allow the system to autonomously manage security issues without needing intervention from admins.
Cloud Consultant at i-Community AG
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 Cloud is scalable, offering free and paid versions with costs averaging $15 monthly per server.
Microsoft Entra External ID pricing varies, cost-effective for some, expensive for others, challenging cloud transition impacts evaluation.
Security has essentially no cost when compared to the cost of a breach.
Director, Cloud and Modern Workplace at Informanix Technology Group
Every time we consider expanding usage, we carefully evaluate the necessity due to cost concerns.
Programme Manager- Cyber Fusion- Group CISO at a financial services firm with 10,001+ employees
We appreciate the licensing approach based on employee count rather than a big enterprise license.
Manager, Microsoft Technology Alliance at Silverfort
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 Cloud enhances security with AI-based threat detection, multi-cloud support, and a unified portal for comprehensive management.
Microsoft Entra External ID enhances security and efficiency by simplifying identity management and integration without on-premises infrastructure.
The most valuable feature for me is the variety of APIs available.
Programme Manager- Cyber Fusion- Group CISO at a financial services firm with 10,001+ employees
This feature significantly aids in threat detection and enhances the user experience by streamlining security management.
Cloud Consultant at i-Community AG
The most valuable feature is the recommendations provided on how to improve security.
Cloud architect at a tech vendor with 1,001-5,000 employees
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 Cloud
Ranking in Microsoft Security Suite
7th
Average Rating
8.0
Reviews Sentiment
6.8
Number of Reviews
87
Ranking in other categories
Vulnerability Management (6th), Container Management (7th), 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) (5th), Compliance Management (4th), Cloud Detection and Response (CDR) (2nd)
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 Cloud is 5.5%, down from 7.3% 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 Cloud5.5%
Microsoft Entra External ID1.6%
Other92.9%
Microsoft Security Suite
 

Featured Reviews

David Birhange - PeerSpot reviewer
Director, Cloud and Modern Workplace at Informanix Technology Group
Brings together cloud security insights through a unified view and supports agentless protection for virtual machines
Copilot and similar features are already being used, though not necessarily for Microsoft Defender for Cloud specifically. We are trying to get more experience before rolling out most of Microsoft Defender for Cloud's AI capabilities. This is definitely on our to-do list, and the priority is urgent as we seek to learn more about these capabilities. The GenAI threat protection from Microsoft Defender for Cloud has not been enabled yet. There are many unknowns with AI applications. AI agents will operate while you're not present, whether you are sleeping or awake, and it's unclear whether there would be any exfiltration of data or how data is being managed. Microsoft Purview is being used extensively, and there is significant development going on with DSPM that will be rolled out to address security concerns. Data labeling and proper demarcation for sensitivity of data before it is received are being actively pursued.
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
Financial Services Firm
13%
Computer Software Company
11%
Manufacturing Company
9%
Government
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 Business27
Midsize Enterprise10
Large Enterprise49
By reviewers
Company SizeCount
Small Business9
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 is your experience regarding pricing and costs for Microsoft Defender for Cloud?
My experience with pricing, setup cost, and licensing for Microsoft Defender for Cloud was pretty straightforward. We did have a consultation with a third party to go over different tiers and produ...
What needs improvement with Microsoft Defender for Cloud?
Microsoft Defender for Cloud can be improved. An additional feature that should be included in the next release is Zero Trust, similar to ThreatLocker software.
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: December 2025.
881,114 professionals have used our research since 2012.