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Microsoft Defender for IoT 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:
 

Categories and Ranking

Microsoft Defender for IoT
Ranking in Microsoft Security Suite
27th
Average Rating
7.4
Reviews Sentiment
6.6
Number of Reviews
5
Ranking in other categories
IoT Security (5th), Operational Technology (OT) Security (6th)
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 IoT is 0.6%, up from 0.2% 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 Entra External ID1.3%
Microsoft Defender for IoT0.6%
Other98.1%
Microsoft Security Suite
 

Featured Reviews

William Tuleja - PeerSpot reviewer
Integration with existing tools boosts management efficiency
The only improvement I see is that some detection explanations are vaguely provided by Microsoft, resulting in generic IoT detections that alert me to an issue yet don't specify what's wrong. Often, it just links back to a generic KB article without additional information. When it happens, it requires extra detective work. This issue doesn't occur often but can be annoying.
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.

Quotes from Members

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Pros

"The graphics and analysis in Microsoft Defender for IoT are very representative."
"Mainly, it is manageable and integrates with other Microsoft products, which is crucial for me."
"It is manageable and integrates with other Microsoft products, which is crucial for me."
"I find Microsoft Defender very effective in vulnerability management and it provides good attack reduction, making it a next-generation protection solution."
"I believe it is best suited for cloud services and is unmatched by other cloud security solutions."
"As a cybersecurity consultant, the best part of Microsoft Defender for IoT is the capability to integrate with other tools such as Microsoft Sentinel and receive real-time alerts from the product."
"Some advantages of Microsoft Defender for IoT are that it's easy to install on any OS, and you can create any custom use cases easily."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"It's quite easy to manage and monitor."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The most valuable feature for me is the firewall capabilities."
"Microsoft Entra External ID is more secure, offering a secure environment."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
 

Cons

"There are a few limitations with Microsoft Defender for IoT. We raised concerns with the product team because they don't capture all the information regarding command execution or processes executed on certain endpoints."
"The only improvement I see is that some detection explanations are vaguely provided by Microsoft, resulting in generic IoT detections that alert me to an issue yet don't specify what's wrong."
"Microsoft Defender for IoT is not scalable. If you want to monitor another industrial network, you need an additional server, making it less scalable."
"The only improvement I see is that some detection explanations are vaguely provided by Microsoft, resulting in generic IoT detections that alert me to an issue yet don't specify what's wrong."
"Customer service and support from Microsoft are costly. The execution by engineers is expensive, and the service is neither free nor toll-free, making it less accessible for customers."
"The documentation for Microsoft Defender for IoT is lacking. There are no clear steps or guidance, and updates are frequent, which adds to the confusion."
"The primary area that needs improvement is compatibility with the latest IoT technologies."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"Technical support needs improvement."
"The quality of Microsoft customer support varies. With an enterprise contract, good resources are usually provided, especially in regions like Saudi Arabia or UAE. However, we have faced challenges with support quality, especially in some subcontinent areas where the resources might not be as experienced."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"The authentication methods available are very limited, and this presents a weak point."
"There have been a couple of times when it was unavailable because of Microsoft issues, but other than that, I don't remember any problems."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
 

Pricing and Cost Advice

Information not available
"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Manufacturing Company
14%
Energy/Utilities Company
9%
Financial Services Firm
6%
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
9%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
No data available
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What needs improvement with Microsoft Defender for IoT?
I don't think I have any recommendation on improvements for Microsoft Defender for IoT because we don't use it too extensively. There are a few limitations with Microsoft Defender for IoT. We raise...
What is your primary use case for Microsoft Defender for IoT?
Clients mainly use Microsoft Defender for IoT for unfamiliar sign-in attempts and Microsoft Defender EDRs. We are using use cases for unfamiliar sign-in and malicious activity, such as user sign-in...
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

Azure Defender for IoT
Azure Active Directory External Identities
 

Overview

Find out what your peers are saying about Microsoft Defender for IoT vs. Microsoft Entra External ID and other solutions. Updated: September 2025.
869,202 professionals have used our research since 2012.