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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
7.1
Microsoft Defender XDR provides high ROI by consolidating security tools, streamlining operations, and enhancing security, despite licensing costs.
Sentiment score
4.0
Organizations saved time and costs with Microsoft Entra External ID, despite varied productivity impacts and integration learning curves.
We can quarantine and isolate a device within minutes.
Information Security Analyst at a educational organization with 10,001+ employees
Microsoft Defender XDR has saved me at least 50% of my time.
House security operator at Cypress Creek Renewables
It helped stop multiple intrusion points where we would have had millions in lost revenue if the attackers got in.
Network Technician at T. Baker Smith, LLC
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
6.1
Microsoft Defender XDR's support is timely and responsive, yet smaller organizations experience slower, less effective assistance than larger ones.
Sentiment score
4.9
Microsoft Entra External ID support experiences are mixed, with praise for knowledgeable staff but concerns about continuity and accessibility.
You get stuck in low-level support for way longer than you should, instead of them escalating the issue up the chain.
Enterprise Application Engineer at a legal firm with 1,001-5,000 employees
It's critical to escalate SEV B issues immediately to a domestic engineer.
Infrastructure engineer at Cetera Financial Group
Once issues are escalated to the second or third layer, the support is much better.
Cyber Security Engineer at a financial services firm with 1-10 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
6.9
Microsoft Defender XDR scales well for various organizations, efficiently supporting growth and flexibility despite some network deployment challenges.
Sentiment score
6.2
Microsoft Entra External ID offers scalability and flexibility but faces latency issues and lacks some authentication methods.
My concern is about the scale of events and alerts being generated, and the product is doing a very good job of only surfacing the important items for us.
Vice President, Information Technology at a construction company with 201-500 employees
Microsoft Defender XDR shows tremendous scalability, much more so than on-premises solutions.
Infrastructure engineer at Cetera Financial Group
Microsoft Defender XDR scales pretty well.
Information Security Analyst at a educational organization with 10,001+ employees
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
8.1
Microsoft Defender XDR is praised for high stability, reliable performance, minimal issues, frequent updates, and prompt issue resolution.
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.
The service has remained consistently online, with any issues isolated to specific components, suggesting a well-designed and modular architecture.
Senior System Engineer at a sports company with 5,001-10,000 employees
The services within our ecosystem have been reliable, meeting their SLAs.
Infrastructure engineer at Cetera Financial Group
It provides high-fidelity signals.
Information Security Analyst at a educational organization with 10,001+ employees
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

Microsoft Defender XDR requires enhancements in speed, integration, automation, AI, ease-of-use, and industry-specific threat intelligence.
Microsoft Entra External ID needs cost reduction, faster sync, better security, improved SSO, UI, integration, support, and pricing clarity.
The licensing process needs improvement and clarification.
Owner at a consultancy with 11-50 employees
Improvements are needed in automated response capabilities.
Security manager at a consultancy with 10,001+ employees
Some inconsistencies exist between blades, which could be improved for a more seamless user and UI experience.
Infrastructure engineer at Cetera Financial Group
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 XDR pricing is seen as complex but fair, with high costs alleviated in bundled Microsoft 365 packages.
Microsoft Entra External ID pricing varies, cost-effective for some, expensive for others, challenging cloud transition impacts evaluation.
There are certainly savings when using Microsoft Defender XDR, which can range from 30%, 40%, and even up to 50%.
Director, Sales at a tech vendor with 201-500 employees
I would rate the pricing as eight out of ten, indicating it is a reasonable cost for the product.
Security manager at a consultancy with 10,001+ employees
Microsoft purposefully obfuscates this through marketing ploys to hide costs.
Senior System Engineer at a sports company with 5,001-10,000 employees
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 XDR integrates tools for comprehensive security, offering threat detection, automation, identity protection, and enhanced efficiency.
Microsoft Entra External ID enhances security and efficiency by simplifying identity management and integration without on-premises infrastructure.
With Microsoft threat intelligence information, it detects various types of threats, including insider attacks, malicious content, and data exfiltration.
Security manager at a consultancy with 10,001+ employees
This allows us to secure our systems in advance and proactively improve security, rather than waiting for incidents to occur.
Works at Hometrack
Once we have it on the security dashboard, we can see a real-time storyline.
Information Security Analyst at a educational organization with 10,001+ 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 XDR
Ranking in Microsoft Security Suite
5th
Average Rating
8.4
Reviews Sentiment
7.1
Number of Reviews
106
Ranking in other categories
Endpoint Detection and Response (EDR) (7th), Extended Detection and Response (XDR) (3rd)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
18th
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 January 2026, in the Microsoft Security Suite category, the mindshare of Microsoft Defender XDR is 6.3%, up from 4.9% compared to the previous year. The mindshare of Microsoft Entra External ID is 1.6%, 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 XDR6.3%
Microsoft Entra External ID1.6%
Other92.1%
Microsoft Security Suite
 

Featured Reviews

KO
House security operator at Cypress Creek Renewables
Advanced threat hunting saves significant time in tracking and responding to incidents
Microsoft Defender XDR could be improved with a lower price. My main suggestion would essentially be what Copilot is providing, which is a single pane of glass, so I don't have to go to different windows. That's just a workflow consideration for me. It would be great to have all the information centralized into one particular data app. If I need to open up extra ones, I can, however, I would appreciate a future where everything I need is right there on one single pane of glass. Beyond that, there's really nothing else I see that I would want Microsoft to improve.
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.
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Top Industries

By visitors reading reviews
Computer Software Company
13%
Financial Services Firm
9%
Manufacturing Company
8%
Comms Service Provider
7%
Computer Software Company
14%
Financial Services Firm
12%
Manufacturing Company
9%
Government
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business47
Midsize Enterprise25
Large Enterprise38
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
 

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?
My experience with pricing, setup, costs, and licensing of Microsoft Defender XDR is tied to our E5 subscription, which is very straightforward for us. We also purchase the uplift for our mobile us...
What needs improvement with Microsoft 365 Defender?
I am not aware of a mobile app that would be available for my team. With a single analyst, if she is ever away, it would be beneficial to have easier access. While she can use the web portal, the e...
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

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.
Information Not Available
Find out what your peers are saying about Microsoft Defender XDR vs. Microsoft Entra External ID and other solutions. Updated: December 2025.
881,082 professionals have used our research since 2012.