Microsoft Defender for Identity vs Microsoft Entra External ID comparison

Microsoft Defender for Identity is a comprehensive security solution that helps organizations protect their identities and detect potential threats. It leverages advanced analytics and machine learning to provide real-time visibility into user activities, enabling proactive identification of suspicious behavior. 

With its powerful detection capabilities, it can identify various types of attacks, including brute force, pass-the-hash, and golden ticket attacks. The solution also offers rich reporting and alerting capabilities, allowing security teams to quickly respond to incidents and mitigate risks. By continuously monitoring user activities and providing actionable insights, Microsoft Defender for Identity helps organizations strengthen their security posture and safeguard their sensitive data.

Microsoft Entra External ID, part of Microsoft Entra, provides highly secure digital experiences for partners, customers, citizens, patients, or any users outside your organization with customization controls. Combine external identities and user directories in one portal to seamlessly manage access across the organization.

Microsoft Entra External ID refers to all the ways you can securely interact with users outside of your organization. If you want to collaborate with partners, distributors, suppliers, or vendors, you can share your resources and define how your internal users can access external organizations. If you're a developer creating consumer-facing apps, you can manage your customers' identity experiences.

With External ID, external users can "bring their own identities." Whether they have a corporate or government-issued digital identity, or an unmanaged social identity like Google or Facebook, they can use their own credentials to sign in. The external user’s identity provider manages their identity, and you manage access to your apps with Entra ID or Entra External ID to keep your resources protected.

The following capabilities make up External ID:

• B2B collaboration - Collaborate with external users by letting them use their preferred identity to sign in to your Microsoft applications or other enterprise applications (SaaS apps, custom-developed apps, etc.). B2B collaboration users are represented in your directory, typically as guest users.
• B2B direct connect - Establish a mutual, two-way trust with another Azure AD organization for seamless collaboration. B2B direct connect currently supports Teams shared channels, enabling external users to access your resources from within their home instances of Teams. B2B direct connect users aren't represented in your directory, but they're visible from within the Teams shared channel and can be monitored in Teams admin center reports.
• Azure AD B2C - Publish modern SaaS apps or custom-developed apps (excluding Microsoft apps) to consumers and customers, while using Azure AD B2C for identity and access management.