Microsoft Entra ID — Independent Software Review

Secure access and identity management with Microsoft Entra ID.

Compliance Transparency Index

Grade: A — Score: 90/100

Best For

Not Ideal For

Operational Overview

Microsoft Entra ID leverages advanced technology to provide a secure adaptive access framework, integrating strong authentication and risk-based conditional access policies. This solution is built on a Zero Trust approach, ensuring that every access attempt is verified and secured.

It simplifies user experiences by offering fast and efficient sign-in options, including multi-factor authentication, single sign-on, and passwordless authentication. Additionally, user-friendly self-service portals enhance productivity while maintaining security.

Organizations can unify and centralize their identity and access management, improving visibility and control across all applications, whether cloud-based or on-premises. By empowering identity teams with AI-driven insights, Microsoft Entra ID helps organizations stay ahead of threats and effectively manage access risks.

Pricing Structure

Microsoft Entra ID Free: $0, included with Microsoft commercial online services

Microsoft Entra ID P1: $6.00/user/month, paid yearly

Microsoft Entra ID P2: $9.00/user/month, paid yearly

Microsoft Entra Suite: $12.00/user/month, paid yearly

Alternative Consideration

Consider switching to Okta: Okta offers similar identity and access management solutions with a focus on user experience.

Frequently Asked Questions

Is Microsoft Entra ID the same as Azure Active Directory?

Yes. Microsoft says Microsoft Entra ID is the new name for Azure Active Directory, and that Azure Active Directory, Azure AD, and AAD are replaced by Microsoft Entra ID. Microsoft Entra is the broader product family, while Microsoft Entra ID is the cloud identity and access management product.

How does Microsoft Entra ID compare with Okta Workforce Identity?

Microsoft Entra ID is usually the cleaner fit for Microsoft 365, Azure, Intune, and Defender-heavy environments because identity, device, and security signals live in the same Microsoft ecosystem. Okta Workforce Identity is more vendor-neutral and can fit mixed SaaS estates better. The tradeoff is that Microsoft-native Conditional Access, Intune, and Defender integrations are less direct outside Entra ID.

Can Microsoft Entra ID replace on-premises Active Directory?

Microsoft Entra ID can replace some cloud identity and access use cases, but it is not a one-for-one replacement for traditional Active Directory. On-premises AD still matters for domain-joined systems, LDAP, Kerberos, Group Policy, and some legacy application patterns. Many organizations run hybrid identity while they move apps and devices toward cloud management.

What is the difference between Microsoft Entra ID P1 and Microsoft Entra ID P2?

Microsoft Entra ID P1 is the practical baseline for Conditional Access, Application Proxy, and advanced MFA controls. Microsoft Entra ID P2 adds Identity Protection, risk-based Conditional Access, and Privileged Identity Management. Buyers with Microsoft 365 E3, Business Premium, or E5 should check included rights before buying standalone licenses.

Does Microsoft Entra ID include Conditional Access?

Conditional Access is included with Microsoft Entra ID P1 and P2. Microsoft describes it as the Zero Trust policy engine that can evaluate signals such as user, group, location, device state, application, sign-in risk, and Defender for Cloud Apps session context. Risk-based Conditional Access requires P2 because it depends on Microsoft Entra ID Protection.

Does Microsoft Entra ID support SAML and OpenID Connect?

Yes. Microsoft documents SAML, OpenID Connect, and OAuth as supported SSO methods in Microsoft Entra ID. It also supports prebuilt SaaS integrations and application proxy for supported on-premises apps that need SSO without a full cloud migration.

Can Microsoft Entra ID manage non-Microsoft SaaS apps?

Yes. Microsoft Entra ID supports integrated SSO apps and standards-based connections for non-Microsoft SaaS applications. Microsoft names ServiceNow, Workday, and Box as examples of cloud SaaS apps that can connect through prebuilt integrations.

Does Microsoft Entra ID work for hybrid Active Directory environments?

Yes. Microsoft Entra ID is commonly used in hybrid environments where on-premises Active Directory remains in place while cloud apps use Entra ID for authentication and access policies. This is safer than treating Entra ID and Active Directory as an either-or decision for every organization.

Does Microsoft Entra ID include Privileged Identity Management?

Privileged Identity Management is a Microsoft Entra ID P2 capability. It is relevant when admins need just-in-time role activation, stronger controls around privileged access, and Conditional Access enforcement for sensitive administrative actions. Teams that only license P1 should not assume PIM is included.

Is Microsoft Entra ID enough for customer identity apps?

Not by itself in every case. Microsoft Entra ID is the workforce identity product, while customer-facing and external identity scenarios may require Microsoft Entra External ID or another CIAM platform. Product teams building login systems for customers should verify the external identity product scope before treating Entra ID as the answer.

AI Visibility Report

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