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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)
8th
Average Rating
7.6
Reviews Sentiment
5.5
Number of Reviews
16
Ranking in other categories
Customer Identity and Access Management (CIAM) (4th), Microsoft Security Suite (21st)
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
12
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of October 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 1.3% compared to the previous year. The mindshare of Microsoft Entra ID Governance is 2.6%, up from 0.7% 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 External ID2.4%
Microsoft Entra ID Governance2.6%
Other95.0%
Identity and Access Management as a Service (IDaaS) (IAMaaS)
 

Featured Reviews

Suresh Kumar Subramaniyan - PeerSpot reviewer
Has supported secure access but still lacks full coverage for external identity challenges
The user experience is acceptable, but Microsoft Entra External ID is not a full-fledged IGA solution. We use different products for complete Identity Governance Administration. Microsoft Entra External ID is suitable for small-scale enterprises implementing identity lifecycle management since most have Active Directory. However, there are several challenges. The out-of-the-box connector has limited features for applications, requiring us to build scheme connectors. While small-scale enterprises can benefit from Microsoft Entra External ID's Identity Governance solution, large-scale enterprises might need different tools from leading market vendors such as SailPoint or Saviynt. Customers face particular challenges with contractor and B2B accounts. Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory. There are delays in the identity lifecycle process, especially for contract partners during onboarding and off-boarding. This might be due to back-end syncing with Active Directory. B2B account removal and provisioning take considerable time. Access governance, particularly access certification for guest users, is time-consuming. Multi-factor authentication enforcement also presents challenges for external users.
William Kox - PeerSpot reviewer
Great policies and timelines for streamlined compliance
There are some areas where improvements are necessary. Even though we have almost the full package, there are some bugs. I cannot directly perform some tasks from the portal. First, I have to go to the policy, change it, and then return to the package to add it. I cannot do it directly from the package. Workarounds are needed, so that can be improved. At the moment, that is the only issue we are facing that needs enhancement.

Quotes from Members

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

Pros

"The most valuable feature for me is the firewall capabilities."
"It's quite easy to manage and monitor."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"I have not encountered any stability issues with Microsoft Entra External ID."
"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 positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The experience has been rather good; there are other possibilities, but we made the choice to go with Microsoft, and we have a good experience with that."
"The most valuable feature for me is the firewall capabilities."
"The solution is fully scalable, supporting everything from small companies to large enterprises."
"The most valuable feature of Microsoft Entra ID Governance for identity management is multi-factor authentication."
"The most valuable features are multifactor authentication and account creation for the Exchange environment in Office 365."
"Regarding Microsoft Entra ID Governance integration with Microsoft services, there is automated identity lifecycle management in the product."
"The platform's most valuable feature is the single sign-on service."
"The most valuable feature of Microsoft Entra ID Governance is access reviews."
"The solution gives me the capability to automatically move guest accounts from the tenant without any manual intervention."
"The product's most valuable features are the robust audit trail capabilities."
 

Cons

"The support engineers are not as skilled as our engineers. When they say something would not work, or there is no solution, we usually hear that Microsoft would not support this."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"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."
"The authentication methods available are very limited, and this presents a weak point."
"The only problem that you might face with Microsoft now is their complex licensing model."
"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."
"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."
"The platform's configuration process needs improvement."
"One area for improvement in Microsoft Entra ID Governance could be providing more granular control over security policies."
"There are some areas where improvements are necessary. Even though we have almost the full package, there are some bugs."
"Sometimes, the solution is not super reliable."
"The product's workflow approval process needs improvement."
"If you want to conduct access review of database-based applications, then you cannot do that."
"If you want to conduct access review of database-based applications, then you cannot do that."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"There are no additional costs besides the standard licensing fees."
"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."
"The solution's pricing is not low but reasonable."
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Financial Services Firm
11%
Manufacturing Company
9%
Government
7%
Computer Software Company
18%
Healthcare Company
9%
Manufacturing Company
8%
Energy/Utilities Company
7%
 

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 Business2
Midsize Enterprise2
Large Enterprise8
 

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...
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?
In terms of integration, improvements could be made. To enhance integration, they could provide out-of-box integration with HashiCorp. This out-of-box integration with HashiCorp or another product ...
What is your primary use case for Microsoft Entra ID Governance?
Clients may use Microsoft Entra ID Governance for various identity management tasks.
 

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: September 2025.
869,202 professionals have used our research since 2012.