Overview
Microsoft Entra ID is Microsoft's cloud-native identity and access management service, rebranded from Azure Active Directory in 2023. It provides single sign-on, multi-factor authentication, conditional access policies, identity protection, and lifecycle management for workforce, B2B partner, and external (B2C) identities. The service is delivered as part of Microsoft 365, with paid P1 and P2 tiers adding advanced governance and risk-based controls.
Entra ID is the default identity backbone for any organisation running Microsoft 365, Dynamics 365, or Azure workloads, and is one of the two largest workforce identity platforms by deployed seats alongside Okta. Conditional access, the policy engine that decides when to challenge a sign-in based on user, device, location, and risk signals, is widely considered the platform's strongest differentiator. The Entra family has expanded to include Entra ID Governance, Permissions Management for cloud entitlements, Internet Access (SSE), and Verified ID for decentralised credentials.
Key Features
- Single sign-on with 5,000+ pre-integrated SaaS connectors
- Conditional Access policy engine with risk-based controls
- Multi-factor authentication including FIDO2 passkeys
- Identity Protection with sign-in and user risk detection
- Privileged Identity Management (PIM) with just-in-time role activation
- Entra ID Governance for access reviews, lifecycle workflows, and entitlement management
- B2B collaboration and external identities (CIAM)
- Hybrid identity through Entra Connect and password hash sync
- Application Proxy for on-premises web apps
- SCIM-based user provisioning to SaaS apps
- Workload Identities for service principals and managed identities
- Native integration with Microsoft Defender for Identity
Pricing
| Edition | Model | Typical Cost |
|---|---|---|
| Entra ID Free | Per tenant | Included with Microsoft 365 / Azure |
| Entra ID P1 | Per user / month | $6.00 (annual commit) |
| Entra ID P2 | Per user / month | $9.00 (annual commit) |
| Entra ID Governance add-on | Per user / month | $7.00 (requires P1 or P2) |
Pricing verified from microsoft.com May 2026. P1 is included with Microsoft 365 E3 and EMS E3; P2 is included with Microsoft 365 E5 and EMS E5. The Entra Suite bundle is priced at $12 per user / month.
Strengths
- Conditional Access is the most mature risk-based policy engine in the IAM market
- Bundled with Microsoft 365, removing line-item cost for many organisations
- Largest application gallery with 5,000+ pre-built SAML and OIDC integrations
- Tight integration with Microsoft Defender, Purview, and Intune for cross-product signals
- Strong roadmap on passwordless and passkeys, with broad Windows and platform support
Limitations
- Governance features (PIM, access reviews, entitlement management) require the higher-priced P2 tier
- Customer identity (Entra External ID) is less mature than Auth0 or Cognito for B2C scale
- Group-based licensing and conditional access can become complex to audit at scale
- Heavy reliance on Microsoft Graph API for automation, which has its own throttling and permission model
- Migration tooling for non-Microsoft identity systems is limited compared to Okta or Ping