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Microsoft Entra

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Microsoft Entra ID is Microsoft's cloud-based identity and access management service, providing SSO, MFA, Conditional Access, and identity governance tightly integrated with Microsoft 365 and Azure.

Last updated 5/30/2026

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Quick answer

What is Microsoft Entra?

Short answer

Microsoft Entra ID (formerly Azure Active Directory) is the identity backbone for organizations running Microsoft 365, Azure, and Windows infrastructure. It provides authentication and authorization for millions of applications via SAML, OIDC, and OAuth 2.0, and is deeply integrated with Microsoft's security stack including Microsoft Defender, Intune for device compliance, and Microsoft Sentinel for identity threat detection. Entra ID Governance adds access reviews, entitlement management, and Privileged Identity Management (PIM). The platform is available in tiered licensing (Free, P1, P2) often bundled within M365 E3 or E5 agreements. For organizations not invested in the Microsoft ecosystem, its appeal narrows considerably. Verify current feature availability and licensing with Microsoft.

Best for
Organizations heavily invested in Microsoft 365, Azure, Intune, or Windows Server Active Directory. Entra ID's native integration with the Microsoft ecosystem is a primary competitive advantage that is difficult to replicate with any third-party platform.
When to choose
Choose Microsoft Entra ID when your organization is deeply invested in Microsoft 365, Azure, Windows, or Intune. The native integration depth, often-included licensing, and Conditional Access policy engine make it the most pragmatic choice for Microsoft-centric environments.
When not to choose
Avoid Entra ID as your primary IAM platform if your organization is cloud-agnostic, has significant non-Windows infrastructure, prioritizes developer experience for CIAM, or wants vendor-neutral IAM that is not tied to Microsoft's licensing structure.

Common use cases

  • SSO to Microsoft 365 apps and thousands of third-party SAML/OIDC applications
  • Risk-based Conditional Access policies combining device compliance, location, and sign-in risk signals
  • Hybrid identity bridging on-premises Active Directory with cloud identity via Entra Connect
  • Privileged Identity Management (PIM) for just-in-time privileged access
  • Access reviews and entitlement management via Entra ID Governance (P2)
  • B2B collaboration across organizational boundaries via Entra B2B

Strengths

  • Deepest integration with Microsoft 365, Azure, Intune, Defender, and Sentinel — no third-party tool matches this natively
  • Often included in existing M365 E3/E5 licensing at no additional marginal cost
  • Mature Conditional Access policy engine with granular, risk-based controls
  • Strong hybrid identity story bridging on-premises AD and cloud identity
  • Large ecosystem of Microsoft-certified practitioners and documentation

Limitations & considerations

  • Advantages diminish significantly for organizations not invested in the Microsoft ecosystem
  • Licensing tiers (P1, P2, E3, E5) can be complex and expensive for features beyond basic SSO
  • Developer experience for custom application integration is generally considered heavier than dedicated CIAM platforms
  • Non-Microsoft endpoint management (Mac, Linux) is less native than Windows
  • Governance features (Entra ID Governance) require P2 licensing, which adds meaningful cost

Pricing model summary

Entra ID is available in Free, P1, and P2 tiers. Many features are included in Microsoft 365 E3 (P1-level) and E5 (P2-level) licenses, making the incremental cost zero for organizations already on those agreements. Standalone P1 and P2 licensing is available. Verify current pricing at Microsoft's website — bundling and tier features change.

View vendor pricing page ↗

Integrations

Microsoft 365AzureIntuneMicrosoft DefenderSalesforceServiceNowAWSGoogle WorkspaceWorkdaySAP

Fit

Company size
SMB, Mid-market, Enterprise
Deployment
SaaS / Cloud-hosted, Hybrid (via Entra Connect for on-premises AD)
Source
Proprietary
Pricing model
Tiered (Free, P1, P2); often bundled in M365 E3/E5 licensing

Alternatives & comparisons

Okta

Okta is a leading cloud-native identity and access management platform offering SSO, MFA, lifecycle management, and identity governance for enterprise workforce and customer-facing applications.

Compare Microsoft Entra vs Okta
JumpCloud

JumpCloud is a cloud directory platform providing unified identity management, SSO, MFA, and device management (MDM) across Windows, Mac, and Linux environments — popular with SMB and mid-market organizations.

Compare Microsoft Entra vs JumpCloud
Ping Identity

Ping Identity provides enterprise IAM with advanced federation, financial-grade API security, and hybrid cloud/on-premises deployment options, commonly deployed in financial services, healthcare, and government.

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OneLogin

OneLogin is a workforce identity and access management platform providing SSO, MFA, and user provisioning for mid-market organizations, now part of One Identity.

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