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Microsoft Entra External ID vs Microsoft Entra ID Governance 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)
9th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Customer Identity and Access Management (CIAM) (5th), Microsoft Security Suite (17th)
Microsoft Entra ID Governance
Ranking in Identity and Access Management as a Service (IDaaS) (IAMaaS)
10th
Average Rating
7.6
Reviews Sentiment
6.3
Number of Reviews
13
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of March 2026, in the Identity and Access Management as a Service (IDaaS) (IAMaaS) category, the mindshare of Microsoft Entra External ID is 2.1%, up from 2.1% compared to the previous year. The mindshare of Microsoft Entra ID Governance is 3.2%, up from 1.1% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Identity and Access Management as a Service (IDaaS) (IAMaaS) Mindshare Distribution
ProductMindshare (%)
Microsoft Entra External ID2.1%
Microsoft Entra ID Governance3.2%
Other94.7%
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.
JG
Lead Cloud Systems Architect at a computer software company with 5,001-10,000 employees
Access reviews and lifecycle policies have streamlined privileged account oversight and onboarding automation
I am not using the access review agent feature in Microsoft Entra ID Governance because that is in preview right now, and I do not know if that is available. My perception of Microsoft Entra ID Governance's ability to handle large volumes of users access and management tasks is good. There is a slight delay from creation of the actual access review to how long it takes to complete the actual review. For us, we are a large organization with over ten thousand employees. If we are doing a review on a larger group that has thousands of employees inside of it, it takes a while to actually complete, and then it becomes a headache for managers. If there were a way to condense that or decrease the amount of time it takes to do it, that would be better. We inspect thousands of people. Microsoft Entra ID Governance can be improved, and I actually have two tickets in with you now about improvements. I would have to dig it up because I do not know off the top of my head, but you can find it. We have two tickets that have been put in by the FastTrack team that I work with for identity governance. I think it was something about the ability to stop reviews early. When you create an access review now, and you put a time gate on it, say it is the end of this week, once the access review is finished, the managers went in there and finished the access review, you cannot finish it until the end of the week. That is a slight problem because we do not get a notification for people that are on the identity side that they have actually finished that, and I think there are two tickets in for that right now.

Quotes from Members

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

Pros

"I have not encountered any stability issues with Microsoft Entra External ID."
"Microsoft Entra External ID offers numerous advantages; there's no need to maintain anything on-premises, which results in a significant IT infrastructure cost saving."
"The times that I have gone into it, I found it easy to use and I haven't had any issues with it."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"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 fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"When it comes to Microsoft Entra External ID, Microsoft itself is the best distributor."
"The most valuable feature of Microsoft Entra ID Governance is access reviews."
"It is compliant with our RVRT and CSV guidelines."
"The solution is fully scalable, supporting everything from small companies to large enterprises."
"The platform's most valuable feature is the single sign-on service."
"Regarding Microsoft Entra ID Governance integration with Microsoft services, there is automated identity lifecycle management in the product."
"I am very happy with the solution."
"The features of Microsoft Entra ID Governance have benefited our organization because we have ServiceNow in our organization and we have been able to create integrations through Lifecycle Management to do onboarding and offboarding easier."
"The product's most valuable features are the robust audit trail capabilities."
 

Cons

"Technical support needs improvement."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"The authentication methods available are very limited, and this presents a weak point."
"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."
"There have been a couple of times when it was unavailable because of Microsoft issues, but other than that, I don't remember any problems."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory."
"Bridging between on-premises and cloud services has the potential for improvement. For instance, it would be beneficial to be able to synchronize traditional directory schemas with Azure. I need to maintain an on-premises Active Directory server for certain required services."
"Even though we have almost the full package, there are some bugs."
"If you want to conduct access review of database-based applications, then you cannot do that."
"One area for improvement in Microsoft Entra ID Governance could be providing more granular control over security policies."
"Sometimes, the solution is not super reliable."
"There is a slight delay from creation of the actual access review to how long it takes to complete the actual review. For us, we are a large organization with over ten thousand employees... it takes a while to actually complete, and then it becomes a headache for managers."
"Microsoft Entra ID Governance should improve its capability to manage identities and access from a single console."
"The solution lacks the feature to work well with third-party applications."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"The solution's pricing is not low but reasonable."
"While other products give the pricing for their application, Microsoft Entra ID Governance has a per-user-based license model."
"In the education sector where I work, the annual cost for my Google and Microsoft environments is approximately $35,000. This covers the needs of 3,400 students and 800 faculty and staff members."
"There are no additional costs besides the standard licensing fees."
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Top Industries

By visitors reading reviews
Computer Software Company
12%
Financial Services Firm
11%
Manufacturing Company
10%
Government
7%
Computer Software Company
12%
Government
10%
Comms Service Provider
7%
Energy/Utilities Company
6%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
By reviewers
Company SizeCount
Small Business2
Midsize Enterprise2
Large Enterprise9
 

Questions from the Community

What is your experience regarding pricing and costs for Microsoft Entra External ID?
Microsoft is flexible in the pricing for the product, so I cannot say that it is expensive, but definitely they are flexible in the price lists and their ways of doing payments.
What needs improvement with Microsoft Entra External ID?
Not really at the moment, but perhaps when we go deeper into using Microsoft Entra External ID, we may experience some things we may not prefer. However, up to now, we have not encountered anything...
What is your primary use case for Microsoft Entra External ID?
When I say identity, I mean Microsoft Entra External ID. We have been using Microsoft Entra External ID since the beginning of 2022. I am using it as a client. The purposes for using Microsoft Entr...
What do you like most about Microsoft Entra ID Governance?
The most valuable feature of Microsoft Entra ID Governance is access reviews.
What needs improvement with Microsoft Entra ID Governance?
I am not using the access review agent feature in Microsoft Entra ID Governance because that is in preview right now, and I do not know if that is available. My perception of Microsoft Entra ID Gov...
What is your primary use case for Microsoft Entra ID Governance?
My main use cases for Microsoft Entra ID Governance are access reviews, but specifically Privileged Identity Management access reviews. I am utilizing the user-centric access reviews in Microsoft E...
 

Also Known As

Azure Active Directory External Identities
No data available
 

Overview

Find out what your peers are saying about Microsoft Entra External ID vs. Microsoft Entra ID Governance and other solutions. Updated: March 2026.
885,311 professionals have used our research since 2012.