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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
17th
Average Rating
7.8
Reviews Sentiment
5.7
Number of Reviews
17
Ranking in other categories
Identity and Access Management as a Service (IDaaS) (IAMaaS) (9th)
Microsoft Entra Verified ID
Ranking in Customer Identity and Access Management (CIAM)
8th
Ranking in Microsoft Security Suite
21st
Average Rating
8.0
Reviews Sentiment
6.8
Number of Reviews
8
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of March 2026, in the Customer Identity and Access Management (CIAM) category, the mindshare of Microsoft Entra External ID is 5.0%, down from 6.7% compared to the previous year. The mindshare of Microsoft Entra Verified ID is 2.8%, down from 3.6% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Customer Identity and Access Management (CIAM) Mindshare Distribution
ProductMindshare (%)
Microsoft Entra External ID5.0%
Microsoft Entra Verified ID2.8%
Other92.2%
Customer Identity and Access Management (CIAM)
 

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.
MuhammadWaqar - PeerSpot reviewer
IT Director at Interwood Mobel Pvt Ltd
Supports user management and authentication but needs simpler hybrid integration for broader adoption
I believe there should be an easy provision for the on-premises and for the hybrid environment in Microsoft Entra Verified ID, as there seems to be some difficulty with hybrid implementations, especially in a country like Pakistan where most are transitioning to cloud but not fully migrating, instead opting for hybrid solutions. An ease for hybrid integration would greatly help the technical teams. I believe the policy implementation is a little bit complex on the Microsoft side; there should be a simpler way to implement policies, utilizing standardized templates for compliance, such as industry-specific templates for the service industry, which would be helpful for HIPAA and other compliances.

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."
"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 impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"The positive impact of Microsoft Entra External ID on my organization is that it enhances ease of use for the administrative side."
"The times that I have gone into it, I found it easy to use and I haven't had any issues with it."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"The fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"Microsoft Entra External ID is more secure, offering a secure environment."
"The biggest return on investment when using Microsoft Entra Verified ID is the single sign-on (SSO) feature."
"I like the Microsoft Authenticator app since it comes with two-factor authentication."
"Microsoft Entra Verified ID has helped reduce fraud or impersonation attacks because if you are using a government-sanctioned ID, what is more secure than that?"
"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."
"Entra allows us and our customers to access workloads on Azure and Office 365 securely, and we've integrated it with other applications to provide a single pane of glass for user identification, eliminating the need for multiple IDs."
"Microsoft Entra Verified ID has smoothed out our identity verification process and made it easier for us to authenticate users, making us more confident about our users being who they say they are so we can trust that we have secure logins for all our users."
"The most valuable features of the solution are mainly in the areas of security and auditing."
"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."
 

Cons

"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."
"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."
"I would like to see faster synchronization."
"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 only problem that you might face with Microsoft now is their complex licensing model."
"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."
"The tool's expensive nature is an area of concern where improvements are required."
"I believe there should be an easy provision for the on-premises and for the hybrid environment in Microsoft Entra Verified ID, as there seems to be some difficulty with hybrid implementations, especially in a country like Pakistan where most are transitioning to cloud but not fully migrating, instead opting for hybrid solutions."
"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."
"I still feel the pricing is on the higher side for larger customers."
"There is room for improvement in Microsoft Entra Verified ID, particularly in the integration with other platforms, as they could do better with the API, for example."
"Microsoft products basically have no support other than the knowledge base, so I would give it a two out of 10."
"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."
"I have not really seen return on investment with Microsoft Entra Verified ID."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"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."
"If one is cheap and ten is very expensive, I rate the product price as seven."
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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
18%
Manufacturing Company
9%
Construction Company
7%
Financial Services Firm
7%
 

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 Business4
Large Enterprise4
 

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 needs improvement with Microsoft Entra Verified ID?
It is hard for me to say how Microsoft Entra Verified ID can be improved. I really do not know the extent of how that can benefit everything. I am trying to learn that here at the Ignite conference.
What is your primary use case for Microsoft Entra Verified ID?
My main use cases for Microsoft Entra Verified ID are verifying the end user saying who they are and being able to back that up with government-issued proof.
What advice do you have for others considering Microsoft Entra Verified ID?
My organization has not implemented the Face Check feature yet; we are using YubiKeys. My organization's trust in digital interactions really has not changed since implementing Microsoft Entra Veri...
 

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: March 2026.
885,286 professionals have used our research since 2012.