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Microsoft Entra External ID vs Microsoft Entra ID comparison

 

Comparison Buyer's Guide

Executive SummaryUpdated on Dec 2, 2024

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 Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
13th
Ranking in Microsoft Security Suite
26th
Average Rating
7.6
Reviews Sentiment
6.7
Number of Reviews
8
Ranking in other categories
Customer Identity and Access Management (CIAM) (7th)
Microsoft Entra ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
1st
Ranking in Microsoft Security Suite
2nd
Average Rating
8.6
Reviews Sentiment
7.1
Number of Reviews
226
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (1st), Access Management (1st)
 

Mindshare comparison

As of May 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 1.8%, up from 1.0% compared to the previous year. The mindshare of Microsoft Entra ID is 28.1%, down from 28.7% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

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.
Aaron Liang - PeerSpot reviewer
Has significantly improved secure access to applications and resources in our environment
Microsoft Entra ID has helped by simplifying our management of permissions for APIs. We are not directly exposing credentials, as we use tokens instead. It has made management easier and more secure, especially in a multi-user environment. The implementation of Microsoft Entra ID significantly improved secure access to applications and resources in our environment, primarily through the widespread use of single-sign-on. Managing API permissions became much easier, as application registration often involves calling an API to utilize services without directly exposing credentials, relying instead on token-based authentication. This streamlined approach benefits end-users by simplifying access while remaining transparent to them. Ultimately, my role focuses on ensuring a smooth and user-friendly experience, even if the underlying technology remains unseen by the end-users. Our company strongly emphasizes passwordless authentication, primarily through device-bound passkeys in Microsoft Authenticator. While administrators with high-privileged accounts utilize YubiKeys and passwords for tasks like accessing Microsoft Graph, we are actively transitioning all other users towards passwordless methods such as Windows Hello biometrics. This approach streamlines authentication and enhances security. Though initial deployment in 2022 presented challenges due to hardware limitations and the lingering effects of the COVID-19 pandemic, the technology has significantly improved and provides a simple and effective user experience.

Quotes from Members

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

Pros

"The single sign-on access is the most useful feature we use."
"The most valuable feature for me is the firewall capabilities."
"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 most beneficial feature for us is the ease of setup. With about five clicks, we can generate unique IDs and keys and set up in less than 30 minutes. We can also generate these for multiple years simultaneously, which is convenient."
"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 of Microsoft Entra ID is its security options, where we can provide highly effective security for user accounts during authentication."
"Many of its features are valuable, including: facilitating application authentication, privileged access management, processes for attestation, and access reviews."
"We have the ability to define the email user in the designated field."
"The solution has come a long way. Now, with the Azure AD B2C offering integrated as well, we've got a full IAM-type solution for our customer-facing identity management. In addition, when it comes to user journeys we now can hook in custom flows for different credential checking and authorizations for specific conditional access."
"Being able to use Azure AD means that you can use some of the Azure AD security features like Advanced Password Protection. As well as querying your normal password requirements like lengths and complexity, Azure AD has a feature in which you can put specific words. It can be words to do with your company, words to do with your company location, or words that a lot of your employees would otherwise use. You can disallow them. It's very good at making more obvious passwords, ones they're not allowed to use anymore. That's a good feature."
"This solution serves as the basis to understand the MS SSO and MFA capabilities."
"Conditional Access is a helpful feature because it allows us to provide better security for our users."
"The security and infrastructure management features are the most valuable ones for us."
 

Cons

"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"I would like to see faster synchronization."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"I generally find Microsoft solutions expensive, especially in specific offerings."
"Technical support needs improvement."
"The quality of Microsoft customer support varies. With an enterprise contract, good resources are usually provided, especially in regions like Saudi Arabia or UAE. However, we have faced challenges with support quality, especially in some subcontinent areas where the resources might not be as experienced."
"The cost is very high."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"We would like to see more system updates."
"For the end users, it can be confusing if they have worked for another company that had the Authenticator app. It is tricky if they have already had the Authenticator app and then work somewhere else. If they have to download it again and use it again on their phone, it is something that gets complicated. I know how to get through it. They just need to uninstall and reinstall the application, but for them, sometimes, it is confusing."
"Many of the features are outdated, so the UI and UX could be improved."
"In terms of connecting the web application, there is technology for single sign-on. When we use it, the solution opens very slowly. It might be a bandwidth issue, and some content will not work on that portal."
"Entra could be improved by enhancing self-service options for end users, such as making password reset options more accessible."
"The scalability of the solution is good."
"The ability to manage and authenticate against on-premises solutions would be beneficial."
"You can manage the users from the Office 365 administration center, and you can manage them from Azure Active Directory. Those are two different environments, but they do the same things. They can gather the features in one place, and it might be better if that place were Azure."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"It is not too expensive."
"It comes free with the Microsoft account. We have a yearly agreement, and all products are covered under it."
"The price is fine. It's a good value for the money compared with other solutions."
"We have an agreement with Microsoft, and my company pays yearly."
"I work for an academic medical center, where there is a watch kept over every dollar spent. I do have concerns about the micro charges for different levels or features of the product."
"Licensing fees are paid on a monthly basis and the cost depends on the number of users."
"Previously, only building and global administrators could purchase subscriptions or licenses. Mid-last year, Microsoft made it so users can purchase the license online. Microsoft business subscription is for 200 to 300 users. If you have more than 300 users, you can't purchase the business plan. You have to purchase the enterprise plan. The enterprise plan is for 301 users and above. Pay as you go is also available. If you pay as you go in Azure, you will be billed for whatever you use."
"It is a packaged license. We have a Premium P1 subscription of Office 365, and it came with that."
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Top Industries

By visitors reading reviews
Computer Software Company
15%
Financial Services Firm
12%
Manufacturing Company
10%
Government
7%
Educational Organization
30%
Computer Software Company
10%
Financial Services Firm
9%
Manufacturing Company
6%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

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...
How does Duo Security compare with Microsoft Authenticator?
We switched to Duo Security for identity verification. We’d been using a competitor but got the chance to evaluate Duo for 30 days, and we could not be happier. Duo Security is easy to configure a...
What do you like most about Azure Active Directory?
It is very simple. The Active Directory functions are very easy for us. Its integration with anything is very easy. We can easily do third-party multifactor authentication.
What is your experience regarding pricing and costs for Azure Active Directory?
Regarding pricing, for the services we receive, it seems within the market range and about average.
 

Also Known As

Azure Active Directory External Identities
Azure AD, Azure Active Directory, Azure Active Directory, Microsoft Authenticator
 

Interactive Demo

Demo not available
 

Overview

 

Sample Customers

Information Not Available
Microsoft Entre ID is trusted by companies of all sizes and industries including Walmart, Zscaler, Uniper, Amtrak, monday.com, and more.
Find out what your peers are saying about Microsoft Entra External ID vs. Microsoft Entra ID and other solutions. Updated: April 2025.
849,686 professionals have used our research since 2012.