Try our new research platform with insights from 80,000+ expert users

Microsoft Defender for Office 365 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 Office 365 is praised for enhancing security, reducing costs, and improving productivity with integrated threat protection.
Sentiment score
4.3
Users faced challenges with Microsoft Entra External ID but saved costs and time compared to traditional, on-premises solutions.
It has also decreased our time to detection and response by about 15 to 20 percent.
Overall, cost of owning and operating our system goes down.
It's hard to quantify the return on investment we've seen from Microsoft Defender for Office 365.
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
6.0
Microsoft Defender for Office 365 support is mixed, praised for responsiveness but criticized for delays and outdated documentation.
Sentiment score
4.3
Microsoft Entra External ID support varies; response times, documentation, and regional differences affect user satisfaction and solution accessibility.
Over the past two years, there have been no critical problems.
we opened tickets, and they typically resolve them quickly.
Customer service and support have been fantastic.
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
8.0
Microsoft Defender for Office 365 seamlessly scales for global users, enabling effective cybersecurity with adaptable cloud-based capabilities and careful planning.
Sentiment score
7.0
Microsoft Entra External ID offers scalable security for large enterprises, with distinct policies and strong performance despite some latency issues.
We have never faced scalability problems, and Microsoft manages it effectively.
Microsoft Defender for Office 365 scales transparently for us, as we grew from 1,000 users to 3,000 users, and we didn't notice much difference.
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
7.5
Microsoft Defender for Office 365 is praised for its stability, reliability, operational effectiveness, and high user satisfaction despite minor issues.
Sentiment score
5.7
Microsoft Entra External ID is highly stable, reliable, and smooth, with minor rare issues, and positive user feedback.
The solution is stable, as we have been using it for the past two years.
I would assess the stability and reliability of Microsoft Defender for Office 365 as very stable, with barely any issues.
Overall, the stability and reliability of Microsoft Defender for Office 365 are good.
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 Office 365 needs better virus blocking, integration, threat detection, user-friendly configuration, and competitive pricing improvements.
Microsoft Entra External ID needs improved support, integration, pricing, security, UI, and customization for medium-sized businesses.
The main area for improvement is simplifying the implementation and rollout process.
Microsoft could improve by offering recommendations for domain spoofing attacks, especially scenarios where DNS records like SPF, DKIM, and DMARC are not properly published.
There is a different console for different things; I just want one consolidated console.
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 Office 365 offers comprehensive security, valued for integration with E3/E5 licenses, despite varied perceptions on cost.
Microsoft Entra External ID pricing is complex, potentially costly, but scalable, benefiting from Azure expertise and existing subscriptions.
We've likely saved 30% of costs.
Money-wise, it is a part of the Office 365 suite, making it slightly more expensive compared to Trend Micro.
Microsoft is quite affordable with a lot of features available for any size organization.
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 Office 365 provides comprehensive security features, enhancing protection and efficiency across platforms with real-time threat detection.
Microsoft Entra External ID enhances security, management, and user experience through integration, single sign-on, and adaptive authentication features.
It ranks the threats and allows us to prioritize those hitting us the hardest, such as email threats.
It provides end-to-end visibility on email threats such as phishing, extending beyond Exchange Online Protection.
The value of the DLP feature is significant to us because we have internal data, sometimes sensitive, and the users may not always be aware of security and privacy, which might lead them to send out information mistakenly to external parties.
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.
Microsoft's reliability in providing a clear roadmap for the solution is very important, especially at a time when cybersecurity is a risk in every company.
 

Categories and Ranking

Microsoft Defender for Offi...
Ranking in Microsoft Security Suite
10th
Average Rating
8.4
Reviews Sentiment
6.9
Number of Reviews
53
Ranking in other categories
Email Archiving (1st), Email Security (1st), Advanced Threat Protection (ATP) (2nd), Secure Email Gateway (SEG) (1st)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
21st
Average Rating
7.6
Reviews Sentiment
5.8
Number of Reviews
13
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 August 2025, in the Microsoft Security Suite category, the mindshare of Microsoft Defender for Office 365 is 2.9%, up from 2.4% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.0%, up from 0.3% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite
 

Featured Reviews

Tolu Omolaja - PeerSpot reviewer
Great URL scanning and attachment scanning, but I would like more proactive threat analysis
The two main features that prove most beneficial for us are URL scanning and attachment scanning. URL scanning involves an automatic scan of links and emails. When a user clicks on a link within an email, the system promptly checks the link's safety. If the link is deemed safe, access is granted automatically. However, if it is flagged as unsafe, we receive feedback and notification to caution us about the potentially harmful link. At this point, we are presented with the option to proceed or return. I have personally witnessed the system identify a few unsafe links, making this the primary advantage of using the solution. The second crucial aspect is the scanning of attachments. When an email containing an attachment arrives, we receive a notification of the new email, along with information that the attachment is being scanned for threats. This additional layer of security provides peace of mind for our organization. While Microsoft Defender for Office 365 offers numerous features, these two stand out as particularly impressive and valuable to us.
Corrado Vigano - PeerSpot reviewer
Solution integrates well with existing systems while being easy to use
The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use. Furthermore, Microsoft's reliability in providing a clear roadmap for the solution is very important, especially at a time when cybersecurity is a risk in every company. The solution is easy to reuse and not difficult to find expertise for in the market because it is widespread. It is gaining attention even from partners and from the market on the offering side. This serves as a good starting point for customers who can develop internal competence on the solution. Additionally, the presence of reliable partners who know the solution and can provide internal knowledge is the best aspect for them.
report
Use our free recommendation engine to learn which Microsoft Security Suite solutions are best for your needs.
865,384 professionals have used our research since 2012.
 

Top Industries

By visitors reading reviews
Computer Software Company
16%
Financial Services Firm
8%
Manufacturing Company
8%
Comms Service Provider
6%
Computer Software Company
17%
Financial Services Firm
10%
Manufacturing Company
8%
Government
7%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

What do you like most about Microsoft Defender for Office 365?
Threat Explorer is an invaluable tool for me, and it plays a crucial role in helping me discern the origins of various email campaigns, pinpointing where they emanate from, and identifying the indi...
What is your experience regarding pricing and costs for Microsoft Defender for Office 365?
Microsoft is quite affordable with a lot of features available for any size organization.
What needs improvement with Microsoft Defender for Office 365?
Microsoft could improve by offering recommendations for domain spoofing attacks, especially scenarios where DNS records like SPF, DKIM, and DMARC are not properly published. It's essential to enhan...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
Concerning the pricing or setup costs for Microsoft Entra External ID, based on my experience with Entra and 365 in general, it shouldn't require a whole education on their software. That's been a ...
What needs improvement with Microsoft Entra External ID?
I haven't utilized the adaptive authentication feature. We haven't used the customization capability for user journeys within the Microsoft Entra External ID. I don't have experience trying to crea...
What is your primary use case for Microsoft Entra External ID?
I'm more familiar with the Microsoft Entra External ID, the Active Directory external identities, because we have a hybrid environment. For the parts that I handle, the on-premise part is easier fo...
 

Also Known As

MS Defender for Office 365
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Microsoft Defender for Office 365 is trusted by companies such as Ithaca College.
Information Not Available
Find out what your peers are saying about Microsoft Defender for Office 365 vs. Microsoft Entra External ID and other solutions. Updated: July 2025.
865,384 professionals have used our research since 2012.