Independent comparison for enterprise buyers. Updated May 2026.
Quick verdict: Choose Okta for the broadest neutral identity platform, the deepest pre-integrated SaaS catalogue, and a customer identity platform (Customer Identity Cloud / Auth0) that competes head-to-head in B2B and B2C scenarios. Choose Microsoft Entra ID when the enterprise is Microsoft-aligned across Microsoft 365 and Azure, when Entra is bundled in E3 or E5 licensing, or when Conditional Access plus Microsoft Purview and Defender deliver a unified identity-and-security model. The differentiator is positioning: Okta is the leading neutral IdP; Entra is the Microsoft-native default that has grown rapidly into a credible standalone platform.
| Criteria | Okta | Microsoft Entra ID |
|---|---|---|
| Rating | 4.5 / 5.0 (7,400 reviews) | 4.4 / 5.0 (4,800 reviews) |
| Heritage | Independent cloud IAM | Microsoft Azure AD lineage |
| Workforce Identity | Okta Workforce Identity Cloud | Microsoft Entra ID |
| Customer Identity | Customer Identity Cloud (Auth0) | Microsoft Entra External ID |
| MFA | Okta Verify, FIDO2 | Microsoft Authenticator, FIDO2 |
| SSO Catalogue | 7,500+ pre-built integrations | Large but Microsoft-centric |
| Lifecycle | Okta Workflows, Universal Directory | Entra Lifecycle Workflows |
| Governance | Okta Identity Governance | Entra ID Governance |
| Pricing | $2-15+ per user/month | Bundled in E3/E5, P1/P2 add-ons |
Okta is the largest neutral cloud identity provider, with separate Workforce Identity Cloud and Customer Identity Cloud (Auth0, acquired 2021) products. The platform's defining advantages are vendor neutrality, the most comprehensive pre-integrated SaaS application catalogue, and a strong developer-centric approach to customer identity through Auth0.
Microsoft Entra ID (formerly Azure Active Directory) has grown from being the directory behind Microsoft 365 into a credible standalone identity platform with workforce, customer, governance, and permissions management. Entra is bundled in Microsoft 365 E3 and E5 licensing, which gives it overwhelming economic advantages for Microsoft-aligned enterprises.
On single sign-on and access, both platforms support standard protocols (SAML, OIDC, SCIM) and offer broad SaaS application integrations. Okta's catalogue is broader and more SaaS-neutral; Entra's integration with Microsoft 365 and Azure services is naturally deeper.
Conditional Access and risk-based authentication are mature on both platforms. Microsoft Entra Conditional Access integrates tightly with Microsoft Defender for Identity, Microsoft Purview, and Microsoft Entra ID Protection, producing a unified Microsoft security stack. Okta supports similar policies and integrates with third-party security signals.
Identity governance is a growing battleground. Okta Identity Governance (acquired Spera and built natively) competes against Microsoft Entra ID Governance (formerly Permissions Management and identity governance features). Both are credible mid-market alternatives to SailPoint and Saviynt; neither yet matches the depth of dedicated governance specialists at the largest enterprise scale.
Okta pricing is per-user per-month with separate modules. Single Sign-On lists at $2 per user per month; Adaptive MFA at $6 per user per month; Lifecycle Management at $6 per user per month; Identity Governance at $9 per user per month. Bundled enterprise pricing typically lands at $7-15 per user per month for a full workforce identity stack.
Microsoft Entra ID Free is bundled with most Azure and Microsoft 365 plans. Entra ID P1 is $6 per user per month or bundled in Microsoft 365 E3; Entra ID P2 is $9 per user per month or bundled in Microsoft 365 E5; Entra ID Governance is $7 per user per month. For Microsoft 365 E5 customers, the marginal cost of Entra P2 plus Governance is effectively zero.
Five-year TCO for a 10,000-user enterprise workforce identity programme: Okta $4M-8M, Entra P2 plus Governance $2M-5M (assuming E5 bundling). The gap is structurally hard to close for Microsoft-aligned enterprises.
Choose Okta when vendor neutrality is a strategic preference, when the SaaS application estate is broad and not Microsoft-centric, when customer identity needs (Auth0) are part of the same vendor decision, when developer experience for CIAM is decisive, or when Microsoft licensing structures do not deliver bundled Entra benefits.
Choose Microsoft Entra ID when the enterprise is Microsoft-aligned across Microsoft 365 and Azure, when E3 or E5 bundling provides Entra without incremental licence cost, when Conditional Access with Defender and Purview produces a unified security model, or when consolidation onto Microsoft for productivity, security, and identity is the strategic direction.