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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:
 

ROI

Sentiment score
3.6
Users faced challenges with Microsoft Entra External ID but saved costs and time compared to traditional, on-premises solutions.
Sentiment score
7.4
Companies achieve cost savings and enhanced security using Microsoft Entra ID by reducing hardware costs and streamlining operations.
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
We leverage existing licensing, like Windows Server or SQL, and hybrid benefits, and our sales and marketing teams benefit from co-selling and partnership advantages.
Cloud Engineer at Med Tech Solutions
We get a return from not needing to pay other vendors to do what we already had from Microsoft, which was better than the competition.
Lead Architect, Chief Technology Officer Office at a tech services company with 51-200 employees
By eliminating the need for multiple VPN channels and enabling direct work from Azure servers, we have achieved approximately 30% efficiency savings.
Infrastructure Specialist at Renova AB
 

Customer Service

Sentiment score
4.6
Microsoft Entra External ID support varies; response times, documentation, and regional differences affect user satisfaction and solution accessibility.
Sentiment score
6.4
Microsoft Entra ID's support varies; premium users often benefit, but experiences largely depend on agent expertise and plan.
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
The actual support when you get to that level is a ten out of ten.
Senior Consultant at Convergeone
There are immediate answers to any issues that arise with great knowledge and a deep understanding of the product and business needs.
Lead Architect, Chief Technology Officer Office at a tech services company with 51-200 employees
They usually try to deflect, buy time, and often do not address the problem immediately.
Security Engineer at a tech vendor with 10,001+ employees
 

Scalability Issues

Sentiment score
6.0
Microsoft Entra External ID offers scalable security for large enterprises, with distinct policies and strong performance despite some latency issues.
Sentiment score
7.8
Microsoft Entra ID offers seamless scalability and integration, efficiently handling varying user volumes and organizational growth without challenges.
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
We experienced no scalability issues with Microsoft Entra ID.
Technical architect at a computer software company with 10,001+ employees
Its scalability is impressive, aided by Microsoft's efforts to expand its data centers.
Cloud Architect at Palmer College of Chiropractic-Davenport
When dealing with tens of thousands of objects, it requires proper management and best practices to retrieve only necessary data.
Senior Developer at a manufacturing company with 10,001+ employees
 

Stability Issues

Sentiment score
4.8
Microsoft Entra External ID is highly stable, reliable, and smooth, with minor rare issues, and positive user feedback.
Sentiment score
7.8
Microsoft Entra ID is highly reliable, with users praising its stability, low downtime, and swift issue resolution.
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
It's a critical solution that we can't do without.
Cloud Principal & Infrastructure Specialist at a financial services firm with 1,001-5,000 employees
I haven't experienced any downtime, crashes, or performance issues with Microsoft Entra ID.
Director, Modern Workplace at a legal firm with 1,001-5,000 employees
The stability of the solution is very high at 99.999%.
Senior Consultant at Convergeone
 

Room For Improvement

Microsoft Entra External ID needs improved support, integration, pricing, security, UI, and customization for medium-sized businesses.
Microsoft Entra ID needs improved promotion, documentation, usability, integration, and support for biometric authentication, onboarding, and multi-platform environments.
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
A recent incident we dealt with took four months to resolve with a seven-day deadline, which was quite frustrating.
Cloud Principal & Infrastructure Specialist at a financial services firm with 1,001-5,000 employees
Synchronization issues occasionally occur, making it challenging to analyze logs and pinpoint the exact problem.
Senior Nutrition Officer at a manufacturing company with 10,001+ employees
There is a need for better transformation support from on-premises Active Directory policies to the cloud, as Entra ID doesn't cover this sufficiently yet.
Sales Representative at a comms service provider with 10,001+ employees
 

Setup Cost

Microsoft Entra External ID pricing is complex, potentially costly, but scalable, benefiting from Azure expertise and existing subscriptions.
Microsoft Entra ID offers scalable pricing with integrated options in Microsoft 365, providing cost-efficient identity management for enterprises.
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
We are getting our money's worth.
Cloud Architect at Palmer College of Chiropractic-Davenport
Microsoft sets pricing based on customer demand, adjusting to find the optimal balance between sales volume and profit per unit, similar to how Costco manages product prices.
Owner at Alopex ONE UG
Most features of Entra ID are part of Microsoft's ecosystem and included in Microsoft 365 bundles, which means there are no additional costs associated with pricing and licensing.
Senior Consultant at Convergeone
 

Valuable Features

Microsoft Entra External ID enhances security, management, and user experience through integration, single sign-on, and adaptive authentication features.
Microsoft Entra ID offers seamless integration, multifactor authentication, and centralized management with enhanced security and user-friendly administration.
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
We can secure the applications that we are building and make sure that if the application were to be compromised, there is no full access to a customer's environment causing issues and other security concerns.
Senior Consultant at Convergeone
It's integrated with Microsoft technologies like Authenticator, SSO, and MFA, streamlining operations and creating a seamless environment.
Vice President, Sales & Cloud at Aztek
The granular control, such as preventing logins from specific locations, enhances security significantly.
Cloud Architect at Palmer College of Chiropractic-Davenport
 

Categories and Ranking

Microsoft Entra External ID
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
8th
Ranking in Microsoft Security Suite
19th
Average Rating
7.6
Reviews Sentiment
5.5
Number of Reviews
16
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th)
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
7.0
Number of Reviews
266
Ranking in other categories
Single Sign-On (SSO) (1st), Authentication Systems (1st), Identity Management (IM) (2nd), Access Management (1st)
 

Mindshare comparison

As of December 2025, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 2.4%, up from 1.9% compared to the previous year. The mindshare of Microsoft Entra ID is 22.9%, down from 29.8% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Market Share Distribution
ProductMarket Share (%)
Microsoft Entra ID22.9%
Microsoft Entra External ID2.4%
Other74.7%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

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.
JP
Senior Information Security Engineer at a financial services firm with 1,001-5,000 employees
Implementing seamless integration boosts secure access and supports Zero Trust
What I appreciate the most about Microsoft Entra ID is that it integrates seamlessly with all the Defender products and is easy to use. Microsoft Entra ID's integration capabilities influence our Zero Trust model by allowing us to enforce our Zero Trust model. Conditional access policies allow us to leverage Microsoft Entra ID to verify that devices signing in to our cloud services are coming from registered devices, and that people are passing all the other requirements we have in order to complete sign-on or conditional access policies. Since implementing Microsoft Entra ID, I've observed changes in the frequency and nature of identity-related security incidents. The organization already had it implemented when I arrived, and I've been working to enhance it. Better configuration of Microsoft Entra ID has allowed us to better protect our organization from threats. Having it alone isn't a solution, but ensuring proper configuration goes a long way in preventing future compromises. My company's approach to defending against token theft and nation-state attacks has evolved since implementing Microsoft Entra ID. We haven't experienced any known compromises from nation-state attacks, and implementing newer features gives me more confidence in our protection. Regarding device-bound passkeys in Microsoft Authenticator and our approach to phishing-resistant authentication, we are currently implementing Microsoft Entra ID certificate-based authentication. Adding a strong form of MFA is important as we found it to be the most cost-effective way. While other solutions might be equally or more secure, they are significantly more expensive. Having worked as an IT consultant mainly with the Microsoft stack across various industries, I have experience with different identity management solutions. Microsoft Entra ID remains the best option. The major advantages when comparing it to Okta include integration with Defender products, Defender for Identities' integration with conditional access policies, and insider threat management integration for blocking sign-ins based on risk factors. The enhancement of Microsoft Entra ID's implementation is relatively straightforward. My main concern is the occasional lack of documentation and the frequency of changes, which can make feature location challenging.
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Top Industries

By visitors reading reviews
Computer Software Company
15%
Financial Services Firm
12%
Manufacturing Company
10%
Retailer
6%
Financial Services Firm
11%
Computer Software Company
11%
Manufacturing Company
9%
Government
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business8
Midsize Enterprise2
Large Enterprise6
By reviewers
Company SizeCount
Small Business85
Midsize Enterprise38
Large Enterprise155
 

Questions from the Community

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...
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?
My experience with the pricing, setup costs, and licensing of Microsoft Entra ID is that it is decent.
 

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: December 2025.
879,259 professionals have used our research since 2012.