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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:
 

Categories and Ranking

Microsoft Defender XDR
Ranking in Microsoft Security Suite
3rd
Average Rating
8.4
Reviews Sentiment
7.1
Number of Reviews
100
Ranking in other categories
Endpoint Detection and Response (EDR) (5th), Extended Detection and Response (XDR) (4th)
Microsoft Entra External ID
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.7
Number of Reviews
8
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (13th), Customer Identity and Access Management (CIAM) (7th)
 

Mindshare comparison

As of May 2025, in the Microsoft Security Suite category, the mindshare of Microsoft Defender XDR is 6.0%, down from 7.9% compared to the previous year. The mindshare of Microsoft Entra External ID is 0.7%, 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.

Quotes from Members

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

Pros

"I like that it's fully integrated with Windows, Microsoft 365 Exchange Online, and Outlook. It is better than other antivirus solutions because it's fully integrated with all Microsoft products. It's easy to integrate them and onboard all Windows devices from SCCM."
"For me, the advanced hunting capabilities have been really great. It allowed querying the dataset with their own language, which is KQL or Kusto Query Language. That has allowed me to get much more insight into the events that have occurred. The whole power of 365 Defender is that you can get the whole story. It allows you to query an email-based activity and then correlate it with an endpoint-based activity."
"Many people don't realize that Microsoft Azure, Exchange Online, and the security and compliance portal all sync together. For instance, within the Azure portal you can set security restrictions and policies to help secure your tenants... The good part of it is that these products have already been integrated. When you sign on as an admin you have global admin rights and that gives you access to all these features."
"The summarization of emails is a valuable feature."
"Defender XDR can stop advanced attacks, like ransomware or business email compromise."
"Having a single pane of glass for all Microsoft security services makes everything much easier. A security analyst can go to a single portal and see everything in one view. The integration of everything into one portal is a huge benefit."
"Among the most valuable features are the alert timeline, the alert story, which is pretty detailed. It gives us complete insight into what exactly happened on the endpoint. It doesn't just say, "Malware detected." It tells us what caused that malware to be detected and how it was detected. It gives us a complete timeline from beginning to end."
"It provides a single pane of glass within the 365 admin interface, streamlining our experience by consolidating information in one place and eliminating the need to navigate through multiple interfaces."
"The most valuable feature for me is the firewall capabilities."
"Microsoft Entra External ID is more secure, offering a secure environment."
"It's similar to using a Microsoft account to create accounts on other websites. We are also using Microsoft Entra to monitor which applications our guests are using. This allows us to filter, block, or adjust permissions for these applications as needed for our collaborators."
"The most valuable feature for me is the firewall capabilities."
"I have not encountered any stability issues with Microsoft Entra External ID."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"It's quite easy to manage and monitor."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
 

Cons

"Improving scalability, especially for very large tenants, could be beneficial for Microsoft Defender XDR."
"Microsoft could improve on threat hunting and build more on threat detection and handling."
"Since all of our databases are updated and located in the cloud, I would like additional support for this."
"It would be helpful if the solution could scan faster when it comes to scanning attachments to emails."
"The technical support from Microsoft Defender XDR has been disappointingly slow, to the point that I am considering not renewing my unified support contract."
"There's still some more work to be done there. Additionally, the limited terminal live access an analyst has is very restricted."
"Just like in any solution, the price can always be cheaper."
"In the beginning, it's difficult to navigate the system because it is quite large. Just trying to find your way and understand how the system works can be hard. After spending quite a lot of time searching it's a lot easier, but I wish it were a bit more user-friendly when you're trying to find things."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"Technical support needs improvement."
"I would like to see faster synchronization."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"A common concern among the customers I visit is the unpredictability of Microsoft's costs at every renewal. This is really bothersome for the customer, and I would say it is the worst element I have seen in these years."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
 

Pricing and Cost Advice

"Its licensing and pricing are handled by someone else. My role is limited to incidents or issues with the portal, but you get what you pay for. It is worth the cost."
"The most valuable licensing option is expensive, so pricing could be improved. Licensing options for this solution also need to be consolidated, because they frequently change."
"It is 15 dollars per server per month. It is worth it, but it can be costly. It depends on the company's size."
"Microsoft 365 Defender offers competitive pricing."
"Defender XDR is included in the E5 license, but it's a bit too expensive."
"They have moved from a licensing model to pay-per-use... The question is: What happens if, for any reason, there's not enough budget to accept this model? That could be a great problem."
"Microsoft Defender XDR is priced high."
"With the little idea I have about the costs, I can say that XDR tools tend to be a bit expensive. If you are using Microsoft Defender XDR, then you need to go for a subscription-based pricing model."
"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%
Financial Services Firm
9%
Manufacturing Company
8%
Government
7%
Computer Software Company
15%
Financial Services Firm
12%
Manufacturing Company
10%
Government
7%
 

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?
Licensing is somewhat confusing, particularly when presenting our pitch decks to stakeholders and leveraging key features in premium SKUs, but we managed with some assistance from Microsoft.
What needs improvement with Microsoft 365 Defender?
There is nothing I can think of at the moment that needs improvement. I am a contractor and finishing up soon, so I haven't encountered any issues requiring enhancements.
What is your experience regarding pricing and costs for Microsoft Entra External ID?
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.
What needs improvement with Microsoft Entra External ID?
Some areas where Microsoft Entra External ID could improve include cost and enhanced security for integration with federated logins like LinkedIn and Gmail.
What is your primary use case for Microsoft Entra External ID?
I am working on a project for a university where we are trying to create a digital twin of a coral reef restoration project in Saudi Arabia. This involves using a big data platform and developing 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.
Information Not Available
Find out what your peers are saying about Microsoft Defender XDR vs. Microsoft Entra External ID and other solutions. Updated: April 2025.
850,028 professionals have used our research since 2012.