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Microsoft Entra External ID vs Microsoft Entra Verified ID comparison

 

Comparison Buyer's Guide

Executive SummaryUpdated on Jan 27, 2025

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 Customer Identity and Access Management (CIAM)
5th
Ranking in Microsoft Security Suite
21st
Average Rating
7.6
Reviews Sentiment
5.8
Number of Reviews
13
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (10th)
Microsoft Entra Verified ID
Ranking in Customer Identity and Access Management (CIAM)
7th
Ranking in Microsoft Security Suite
24th
Average Rating
8.0
Reviews Sentiment
7.9
Number of Reviews
5
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of August 2025, in the Customer Identity and Access Management (CIAM) category, the mindshare of Microsoft Entra External ID is 7.9%, up from 3.4% compared to the previous year. The mindshare of Microsoft Entra Verified ID is 4.1%, down from 6.9% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Customer Identity and Access Management (CIAM)
 

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.
Andy Yen - PeerSpot reviewer
Offers single sign-on feature for business applications but needs to offer personalized insights
Microsoft Entra Verified ID has saved time for IT admins. The product helps us save money from the cost of security breaches. It is a more cost-effective solution than others in the market. It comes in a Microsoft suite. You can manage permission and access the products without buying anything additional. I rate it a six out of ten.

Quotes from Members

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

Pros

"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 best features of Microsoft Entra External ID include its unification of B2C functionality and B2E features."
"It's quite easy to manage and monitor."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"The most valuable feature for me is the firewall capabilities."
"The most valuable feature for me is the firewall capabilities."
"I have not encountered any stability issues with Microsoft Entra External ID."
"The single sign-on access is the most useful feature we use."
"The authentication features of Microsoft Entra Verified ID are valuable. As an infrastructure professional, I appreciate the exceptional integration between on-premises Active Directory features and Entra ID."
"I like the Microsoft Authenticator app since it comes with two-factor authentication."
"I would recommend this solution to others because it's simple enough to deploy."
"The MFA number matching feature effectively prevents unauthorized access by phishing bad actors who might obtain email credentials. This feature requires users to verify a number on their screen, ensuring they only approve genuine requests."
"The most valuable features of the solution are mainly in the areas of security and auditing."
 

Cons

"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"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."
"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 cost is very high."
"The authentication methods available are very limited, and this presents a weak point."
"The training generally is complicated to understand, leading us to often go through a managed service provider."
"Single sign-on for external applications such as Oracle could be improved to be a little bit cheaper."
"There is room for improvement in AI technology for Microsoft Entra External ID, particularly in providing detailed alerts."
"I must do two-factor authentication when I sign in from a different location. It creates friction. It's not personalized for the end user. I would like to see specific insights."
"There are issues with the integration of Microsoft Entra Verified ID and MFA. Sometimes, the MFA process doesn't succeed, requiring users to sign out and log back in."
"While Microsoft continues to improve the solution, integrating the ID with biometric features could be enhanced, especially in terms of standard B2C flows for multi-factor authentication. Improvements in remembering devices and the timing of MFA triggers could also be beneficial."
"The tool's expensive nature is an area of concern where improvements are required."
"Microsoft products basically have no support other than the knowledge base, so I would give it a two out of 10."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"If one is cheap and ten is very expensive, I rate the product price as seven."
"I still feel the pricing is on the higher side for larger customers. They don't pay anything for on-prem Active Directory. Although we receive additional features with Microsoft’s SSO, pricing is an area Microsoft can work on."
"The pricing and setup are standard. With Entra, you choose between P1 and P2 licenses. We recommend having at least one P2 license in a company for better alert management, even though P2 is more expensive."
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Top Industries

By visitors reading reviews
Computer Software Company
17%
Financial Services Firm
10%
Manufacturing Company
9%
Government
7%
Computer Software Company
19%
Healthcare Company
8%
Financial Services Firm
8%
Manufacturing Company
8%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
No data available
 

Questions from the Community

What is your experience regarding pricing and costs for Microsoft Entra External ID?
Concerning the pricing or setup costs for Microsoft Entra External ID, based on my experience with Entra and 365 in general, it shouldn't require a whole education on their software. That's been a ...
What needs improvement with Microsoft Entra External ID?
I have not utilized the adaptive authentication feature of Microsoft Entra External ID. Previously there was a question about adaptive authentication, and this is the first time I am hearing about ...
What is your primary use case for Microsoft Entra External ID?
I have experience with these products, and currently, we are using them in our organization. Regarding Auto-GPT, it was only a POC. I mainly work with Microsoft products in our system because we ha...
What do you like most about Microsoft Entra Verified ID?
I like the Microsoft Authenticator app since it comes with two-factor authentication.
What needs improvement with Microsoft Entra Verified ID?
I don't think there are areas that could be improved with the product. It looks pretty good already. AI could be an area for continuous improvement or even pricing. The Microsoft Entra Verified ID ...
What is your primary use case for Microsoft Entra Verified ID?
We deal with the Microsoft Entra Verified ID as a dictionary where we put all the users. We use it more for internal purposes, but we do have a lot of guest accounts there. We are in the non-profit...
 

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 Verified ID and other solutions. Updated: July 2025.
864,155 professionals have used our research since 2012.