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Microsoft Defender XDR 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 XDR delivers substantial ROI by streamlining operations, reducing costs, and enhancing security with consolidated functionalities.
Sentiment score
5.9
Organizations saved time and costs with Microsoft Entra External ID, despite higher operational costs and less monetary gain.
We can quarantine and isolate a device within minutes.
Microsoft Defender XDR has saved me at least 50% of my time.
Ever since we turned on the M5 feature set back in June, we have seen a reduced number of potentially malicious clicks and faster alerting when incidents occur.
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
6.2
Microsoft Defender XDR support is responsive but varies; premium users receive faster resolutions than smaller organizations or basic plans.
Sentiment score
5.6
Microsoft Entra External ID customer service varies, with slow response, staff changes, and better resource access via enterprise contracts.
You get stuck in low-level support for way longer than you should, instead of them escalating the issue up the chain.
It's critical to escalate SEV B issues immediately to a domestic engineer.
Once issues are escalated to the second or third layer, the support is much better.
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.
With an enterprise contract, good resources are usually provided, especially in regions like Saudi Arabia or UAE.
 

Scalability Issues

Sentiment score
8.0
Microsoft Defender XDR offers scalable adaptability for large enterprises, accommodating diverse needs by leveraging flexible cloud infrastructure and licensing.
Sentiment score
8.0
Microsoft Entra External ID is scalable, supports large enterprises well, but may experience latency issues with cloud workloads.
Microsoft Defender XDR shows tremendous scalability, much more so than on-premises solutions.
Microsoft Defender XDR scales pretty well.
It is suitable for enterprise-level deployment but has room for improvement.
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
7.9
Microsoft Defender XDR is highly reliable but has occasional performance issues on macOS/Linux and alert misclassifications.
Sentiment score
8.2
Microsoft Entra External ID is highly rated for stability, with minor issues often due to external factors, ensuring reliability.
The service has remained consistently online, with any issues isolated to specific components, suggesting a well-designed and modular architecture.
The services within our ecosystem have been reliable, meeting their SLAs.
It provides high-fidelity signals.
The stability of this solution is very good.
I have not encountered any stability issues with Microsoft Entra External ID.
Unless such major incidents occur, it is stable and reliable.
 

Room For Improvement

Microsoft Defender XDR requires improved UI, integration, clarity, support, AI, and threat detection for better user experience.
Microsoft Entra External ID struggles with high costs, slow synchronization, and complex pricing, affecting integration, alerts, and security.
The licensing process needs improvement and clarification.
Improvements are needed in automated response capabilities.
Some inconsistencies exist between blades, which could be improved for a more seamless user and UI experience.
This is particularly challenging during enterprise agreement renewals, as it's difficult for customers to review costs leading to lengthy negotiations.
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.
More stability in the platform, fewer changes to authentication mechanisms, and increased integration across platforms to improve usability and security infrastructure are needed.
 

Setup Cost

Microsoft Defender XDR pricing varies; it's cost-effective with Microsoft 365, but potentially expensive standalone for smaller businesses.
Microsoft Entra External ID becomes costly at scale due to complex pricing and additional integration expenses, despite scalable options.
There are certainly savings when using Microsoft Defender XDR, which can range from 30%, 40%, and even up to 50%.
I would rate the pricing as eight out of ten, indicating it is a reasonable cost for the product.
Microsoft purposefully obfuscates this through marketing ploys to hide costs.
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 XDR offers seamless integration, advanced threat management, and automation, enhancing security efficiency while reducing costs and tool complexity.
Microsoft Entra External ID enhances access management with easy setup, strong security, federated identities, and seamless integration capabilities for widespread adoption.
With Microsoft threat intelligence information, it detects various types of threats, including insider attacks, malicious content, and data exfiltration.
This allows us to secure our systems in advance and proactively improve security, rather than waiting for incidents to occur.
Once we have it on the security dashboard, we can see a real-time storyline.
It is crucial for hybrid environments, especially for integrating existing on-site infrastructures with cloud-based Active Directory, such as in Office 365 implementations.
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 most valuable feature for me is the firewall capabilities.
 

Categories and Ranking

Microsoft Defender XDR
Ranking in Microsoft Security Suite
3rd
Average Rating
8.4
Reviews Sentiment
7.1
Number of Reviews
101
Ranking in other categories
Endpoint Detection and Response (EDR) (5th), Extended Detection and Response (XDR) (3rd)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.6
Number of Reviews
10
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (11th), Customer Identity and Access Management (CIAM) (7th)
 

Mindshare comparison

As of June 2025, in the Microsoft Security Suite category, the mindshare of Microsoft Defender XDR is 6.2%, down from 7.5% compared to the previous year. The mindshare of Microsoft Entra External ID is 0.8%, up from 0.3% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite
 

Featured Reviews

Gabor Nyerd - PeerSpot reviewer
Includes four services and four products, which can help organizations a lot
We found that sometimes integrations work, but testing them can take some time. Sometimes, configurations take much longer than expected. We have a configuration in place that needs to be synchronized with another server. However, the servers are four hours apart, so this can cause delays. In general, I believe that the time it takes to configure and test a service should be shorter. Sometimes, it can take a couple of hours to test a single configuration setting. Other times, it is only ten or fifteen minutes, which is normal. However, sometimes, even immediate actions can be triggered by configuration changes, and some settings can take up to eight hours to complete. I believe that this time can be improved. Microsoft is making a lot of improvements to its services in a short period of time. This is a good thing, as it means that the services are constantly being updated and improved. However, it can be challenging for customers to keep up with the changes. For example, a customer may read about an update, understand it, and share it with their colleagues and boss. However, it may take days or weeks to test the update and get the necessary approvals. This can be especially challenging for large customers with many users or machines. In some cases, Microsoft may change a service before the customer has had a chance to implement the previous update. This can be frustrating for customers, as it means that they have to constantly learn new things and adjust their workflows. On the one hand, it is important for Microsoft to keep updating and improving its services. This helps to ensure that the services are meeting the customers' needs and that they are staying ahead of the competition. Microsoft should also be mindful of the challenges that these changes can create for customers. One way to address this challenge is to provide customers with more time to implement changes. Microsoft could also provide more information about upcoming changes so that customers can plan ahead. Ultimately, Microsoft needs to strike a balance between keeping its services up-to-date and providing customers with a smooth transition to new features.
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.
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Financial Services Firm
9%
Manufacturing Company
8%
Government
7%
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
11%
Government
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

What do you like most about Microsoft 365 Defender?
Microsoft Defender XDR provides strong identity protection with comprehensive insights into risky user behavior and potential indicators of compromise.
What is your experience regarding pricing and costs for Microsoft 365 Defender?
The pricing for Microsoft Sentinel operates on a pay-as-you-go model based on data ingestion. I recall that Defender XDR pricing is based on the number of endpoints.
What needs improvement with Microsoft 365 Defender?
For Microsoft Defender XDR ( /categories/extended-detection-and-response-xdr ), there is currently no ability to reset passwords for on-premises accounts, which is a key challenge. Incident managem...
What is your experience regarding pricing and costs for Microsoft Entra External ID?
The cost totally depends on Azure's pricing structure. If you have sufficient background knowledge about the features and functionality, it can be cost-effective. However, if you need support or as...
What needs improvement with Microsoft Entra External ID?
Integration could be improved when it comes to legacy tools.The support engineers are not as skilled as our engineers. When they say something would not work, or there is no solution, we usually he...
What is your primary use case for Microsoft Entra External ID?
Currently we use some of the AWS ( /products/amazon-aws-reviews ) solutions and Google Solutions and few of Alibaba Cloud ( /products/alibaba-cloud-reviews ). That totally depends on time to time a...
 

Also Known As

Microsoft 365 Defender, Microsoft Threat Protection, MS 365 Defender
Azure Active Directory External Identities
 

Overview

 

Sample Customers

Accenture, Deloitte, ExxonMobil, General Electric, IBM, Johnson & Johnson and many others.
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Find out what your peers are saying about Microsoft Defender XDR vs. Microsoft Entra External ID and other solutions. Updated: April 2025.
857,162 professionals have used our research since 2012.