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
6.9
Microsoft Defender for Office 365 offers strong ROI through security enhancements, cost savings, and improved company productivity despite measurement challenges.
Sentiment score
4.0
Organizations saved time and costs with Microsoft Entra External ID, despite varied productivity impacts and integration learning curves.
It has also decreased our time to detection and response by about 15 to 20 percent.
Technology support manager at Alfred State College
Overall, cost of owning and operating our system goes down.
Designation Chief Consultant at Avtow
It's hard to quantify the return on investment we've seen from Microsoft Defender for Office 365.
Chief Architect at a tech vendor with 1,001-5,000 employees
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
5.8
Microsoft Defender for Office 365 users rate support highly, praising its responsiveness and 24/7 availability, despite occasional documentation and communication issues.
Sentiment score
4.9
Microsoft Entra External ID support experiences are mixed, with praise for knowledgeable staff but concerns about continuity and accessibility.
Over the past two years, there have been no critical problems.
Solution Consultant at BIM Group of Companies
we opened tickets, and they typically resolve them quickly.
Chief Architect at a tech vendor with 1,001-5,000 employees
With a subscription for Microsoft Defender for Office 365, it is an eight. Without it, it is a six.
Manager at a tech services company 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
7.8
Microsoft Defender for Office 365 offers scalable, efficient protection for large enterprises, ensuring seamless growth across diverse industries.
Sentiment score
6.2
Microsoft Entra External ID offers scalability and flexibility but faces latency issues and lacks some authentication methods.
We have never faced scalability problems, and Microsoft manages it effectively.
Solution Consultant at BIM Group of Companies
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.
Chief Architect at a tech vendor with 1,001-5,000 employees
Microsoft Defender for Office 365 scales with the growing needs of my company well.
Senior Client Director and Advisory Service Leader at Crossfuze
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
7.7
Microsoft Defender for Office 365 provides 99.9% uptime with minor issues, ensuring reliable performance and seamless cloud integration.
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.
I would rate the stability of Microsoft Defender for Office 365 as 10 over 10 because it's highly available, it works, and it does the job it is meant to do.
Cloud Solutions Architect at a tech services company with 201-500 employees
I have not experienced any downtime, crashes, or performance issues because of Defender.
Technology Associate at a financial services firm with 51-200 employees
The solution is stable, as we have been using it for the past two years.
Solution Consultant at BIM Group of Companies
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

Users call for enhanced virus detection, cross-platform support, and pricing transparency in Microsoft Defender for Office 365.
Microsoft Entra External ID needs cost reduction, faster sync, better security, improved SSO, UI, integration, support, and pricing clarity.
The main area for improvement is simplifying the implementation and rollout process.
Infrastructure and Security Lead at Vedanta
Microsoft could improve by offering recommendations for domain spoofing attacks, especially scenarios where DNS records like SPF, DKIM, and DMARC are not properly published.
Solution Consultant at BIM Group of Companies
There is a different console for different things; I just want one consolidated console.
Senior Director, Security Architecture & Engineering at a leisure / travel company with 10,001+ employees
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 Office 365 pricing is seen as flexible but potentially expensive, offering value in comprehensive security features.
Microsoft Entra External ID pricing varies, cost-effective for some, expensive for others, challenging cloud transition impacts evaluation.
We've likely saved 30% of costs.
Designation Chief Consultant at Avtow
Money-wise, it is a part of the Office 365 suite, making it slightly more expensive compared to Trend Micro.
Infrastructure and Security Lead at Vedanta
Microsoft is quite affordable with a lot of features available for any size organization.
Solution Consultant at BIM Group of Companies
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 Office 365 enhances email security with anti-phishing, anti-malware, threat intelligence, and seamless integration for efficient management.
Microsoft Entra External ID enhances security and efficiency by simplifying identity management and integration without on-premises infrastructure.
It ranks the threats and allows us to prioritize those hitting us the hardest, such as email threats.
Technology support manager at Alfred State College
It provides end-to-end visibility on email threats such as phishing, extending beyond Exchange Online Protection.
Solution Consultant at BIM Group of Companies
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.
Chief 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 Offi...
Ranking in Microsoft Security Suite
10th
Average Rating
8.4
Reviews Sentiment
6.8
Number of Reviews
60
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
17th
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 February 2026, in the Microsoft Security Suite category, the mindshare of Microsoft Defender for Office 365 is 3.6%, up from 2.3% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.7%, 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 Office 3653.6%
Microsoft Entra External ID1.7%
Other94.7%
Microsoft Security Suite
 

Featured Reviews

Emeka Ndulu - PeerSpot reviewer
Cloud Solutions Architect at a tech services company with 201-500 employees
Improves threat visibility and response while reducing manual tasks and training users against phishing
I appreciate the attack simulation feature whereby I get to train users and educate them on how to identify phishing emails and spam emails, as well as the anti-spam protection. It gives me visibility into my threat environment and threat landscape to ensure that I am one step ahead of any likelihood of threats within my environment. I get to detect it and respond, so the threat intelligence is very effective. Microsoft security solutions save my time. It saves money because once I protect my environment, I don't lose money. It has decreased my detection time and my time to respond.
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.
report
Use our free recommendation engine to learn which Microsoft Security Suite solutions are best for your needs.
881,757 professionals have used our research since 2012.
 

Top Industries

By visitors reading reviews
Computer Software Company
13%
Financial Services Firm
8%
Manufacturing Company
8%
Comms Service Provider
6%
Computer Software Company
14%
Financial Services Firm
11%
Manufacturing Company
9%
Government
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business23
Midsize Enterprise10
Large Enterprise31
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
 

Questions from the Community

What needs improvement with Microsoft Defender for Office 365?
The inbuilt analysis of false positives can be faster. It's not slow, but it can be faster.
What is your primary use case for Microsoft Defender for Office 365?
My use case for Microsoft Defender for Office 365 is for email protection, safe links, protection of links, documents, protecting my documents, and protecting attachments. I also use it to conduct ...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
Microsoft is flexible in the pricing for the product, so I cannot say that it is expensive, but definitely they are flexible in the price lists and their ways of doing payments.
What needs improvement with Microsoft Entra External ID?
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything...
What is your primary use case for Microsoft Entra External ID?
When I say identity, I mean Microsoft Entra External ID. We have been using Microsoft Entra External ID since the beginning of 2022. I am using it as a client. The purposes for using Microsoft Entr...
 

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: December 2025.
881,757 professionals have used our research since 2012.