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Microsoft Entra External ID vs Microsoft Purview Data Lifecycle Management comparison

 

Comparison Buyer's Guide

Executive Summary

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 Microsoft Security Suite
18th
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), Customer Identity and Access Management (CIAM) (4th)
Microsoft Purview Data Life...
Ranking in Microsoft Security Suite
29th
Average Rating
8.0
Reviews Sentiment
6.1
Number of Reviews
4
Ranking in other categories
Email Archiving (9th), Document Management Software (2nd), Data Governance (26th)
 

Mindshare comparison

As of January 2026, in the Microsoft Security Suite category, the mindshare of Microsoft Entra External ID is 1.6%, up from 0.5% compared to the previous year. The mindshare of Microsoft Purview Data Lifecycle Management is 1.2%, up from 0.2% compared to the previous year. It is calculated based on PeerSpot user engagement data.
Microsoft Security Suite Market Share Distribution
ProductMarket Share (%)
Microsoft Entra External ID1.6%
Microsoft Purview Data Lifecycle Management1.2%
Other97.2%
Microsoft Security Suite
 

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.
RK
Cloud Security & Governance at a financial services firm with 10,001+ employees
A comprehensive data management solution shows potential for improvement while providing strong integration with existing infrastructure
One of the requirements is to have data leak policies and data access policies. This is very critical to enforce data governance standards, which relate to data classification, access control, data protection, and retention. It covers the entire lifecycle, helping us to protect, detect, and classify the documents. Challenges are mostly related to the security products onboarded into the bank; they have challenges in terms of those products complying with the internal standards. Sometimes, we cannot just use the DLP across the state. For example, using Microsoft products has been easy to adopt, such as OneDrive and SharePoint on-premise, but it becomes a challenge when it comes to AWS, as data also exists in S3 buckets. Testing is still ongoing, but it will eventually be done. The time it takes to scan is one issue; when we raise high-volume issues and tickets related to scanning failures, it relates to permission errors, which are technical challenges. These take time because we have high volume tickets in terms of connectivity, scanning failures, and related matters. There are also frequent change requests, especially regarding scoping or rescoping due to complexities, creating several challenges. In both organizations I work with, there are gaps, and there is no enterprise-wide data classification available. However, there are pockets of implementations for various products. Some agencies are using it, but otherwise, there's no product existing across the enterprise. Microsoft Purview Data Lifecycle Management is definitely a good solution, but there is significant room for improvement from a product perspective. Reporting is another area that needs improvement.

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."
"The impact of having multiple authentication types available significantly helps with security practices using Microsoft Entra External ID."
"Microsoft Entra External ID is more secure, offering a secure environment."
"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 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 fact that it is quite integrated into the entire Microsoft environment makes it quite easy to use."
"I have not encountered any stability issues with Microsoft Entra External ID."
"Primarily Microsoft Entra External ID SSO is valuable as it works with everything when it comes to integration."
"The impact of Microsoft Purview Data Lifecycle Management on my unified data catalog has improved a lot; the improvements I see are in the lineage, the discovery, and the labeling."
"The system is stable; I haven't encountered any worldwide stability issues unlike other office products."
"The automatic data labeling is compelling, and we are investigating its use."
"The UI is the most valuable feature."
"Purview's built-in functionality provides immediate access to reports, streamlining the entire process."
 

Cons

"The authentication methods available are very limited, and this presents a weak point."
"Microsoft's pricing is complex and difficult to fathom due to a range of different licensing options."
"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 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."
"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."
"Microsoft Entra External ID isn't a complete cloud-based account solution, as it must handle internal employees and collaborate with internal Active Directory."
"The problem with Microsoft products is that they often cater to enterprise-level needs, which can be too costly for medium-sized businesses."
"The time it takes to scan is one issue; when we raise high-volume issues and tickets related to scanning failures, it relates to permission errors, which are technical challenges."
"Microsoft Purview Data Lifecycle Management can be challenging to implement due to its complexity and dense documentation, making it difficult to get started."
"I think labeling could use a lot more AI assistance. AI implementation into labeling would be beneficial."
"Microsoft Purview Data Lifecycle Management can be challenging to implement due to its complexity and dense documentation, making it difficult to get started."
"Microsoft's Purview Data Lifecycle Management preview features can be unreliable, hindering their usefulness."
 

Pricing and Cost Advice

"We don't pay separately for Microsoft Entra External ID as it's part of our Microsoft Exchange subscription."
"The service operates on a pay-as-you-go basis, charging an extra one cent per field of metadata scanned in our data."
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Top Industries

By visitors reading reviews
Computer Software Company
14%
Financial Services Firm
12%
Manufacturing Company
9%
Government
8%
Computer Software Company
13%
Government
12%
Manufacturing Company
9%
Financial Services Firm
9%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
By reviewers
Company SizeCount
Small Business9
Midsize Enterprise2
Large Enterprise6
No data available
 

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 is your experience regarding pricing and costs for Microsoft Purview Data Lifecycle Management?
We opted for Purview Data Lifecycle Management due to its significant cost advantage over competitors. At a 95 percent price reduction, it was a clear winner. The service operates on a pay-as-you-g...
What needs improvement with Microsoft Purview Data Lifecycle Management?
I think labeling could use a lot more AI assistance. AI implementation into labeling would be beneficial.
What is your primary use case for Microsoft Purview Data Lifecycle Management?
My major use case for Microsoft Purview Data Lifecycle Management is for the classification of data.
 

Also Known As

Azure Active Directory External Identities
Microsoft Information Governance, Microsoft Purview Records Management
 

Overview

Find out what your peers are saying about Microsoft Entra External ID vs. Microsoft Purview Data Lifecycle Management and other solutions. Updated: December 2025.
881,114 professionals have used our research since 2012.