Okta vs Microsoft Entra ID -- Identity & Access Management Compared

Okta vs Microsoft Entra ID

Microsoft Entra ID is the most direct competitor to Okta and the strongest choice for Microsoft-centric organizations. Where Okta excels at vendor-neutral SSO with the broadest application integration network, Entra ID provides deeper value for organizations already paying for Microsoft 365 by including identity capabilities in existing licensing. Entra ID's conditional access engine is among the most sophisticated available, while Okta offers a more consistent experience across non-Microsoft applications.

The Verdict

Choose Microsoft Entra ID if your organization is built on Microsoft 365 and Azure — the identity capabilities included in your existing licensing make it the most cost-effective option with the deepest ecosystem integration. Choose Okta if you need a vendor-neutral identity layer that provides the best SSO experience across a diverse application landscape spanning multiple cloud providers.

Feature-by-Feature Comparison

FeatureMicrosoft Entra IDOkta
SSO App IntegrationsStrong for Microsoft and Azure AD gallery apps7,000+ pre-built integrations across all vendors
MFA MethodsAuthenticator, FIDO2, Windows Hello, SMS, voiceOkta Verify, FIDO2, SMS, voice, biometrics, push
Conditional AccessIndustry-leading risk-based conditional accessAdaptive MFA with context-aware policies
Identity GovernancePIM, access reviews, entitlement management (P2)Okta Identity Governance (add-on SKU)
Pricing ModelIncluded in M365 / P1 $6 / P2 $9 per user/monthStarts at $2/user/month, add-ons increase cost
Hybrid IdentityAD Connect, Cloud Sync for on-premises ADAD agent-based integration with cloud directory
Customer Identity (CIAM)Azure AD B2C (separate product)Customer Identity Cloud (Auth0-based)
Ecosystem Lock-inStrongest within Microsoft ecosystemVendor-neutral, multi-cloud identity layer

When to Choose Each Tool

Choose Microsoft Entra ID when:

  • +Your organization is heavily invested in Microsoft 365 and Azure
  • +You want to reduce identity costs by leveraging existing M365 licensing
  • +You need deep integration with Microsoft Defender and Sentinel for security operations
  • +Conditional access with device compliance and session controls is a priority
  • +You are building a zero trust architecture anchored on the Microsoft security stack

Choose Okta when:

  • +You need the broadest vendor-neutral application integration network
  • +Your environment spans multiple cloud providers without Microsoft dominance
  • +You want a single admin console for both workforce and customer identity
  • +Non-Microsoft SaaS application SSO quality is a top priority
  • +You prefer an identity vendor independent of your cloud infrastructure provider

Pros & Cons Comparison

Microsoft Entra ID

Pros

  • +Included in Microsoft 365 licensing — significant cost savings for M365 shops
  • +Deep native integration with Azure, M365, and Defender ecosystem
  • +Conditional access policies are among the most powerful in the industry
  • +Passwordless authentication with Windows Hello and FIDO2 support
  • +Massive scale — proven across billions of authentications daily

Cons

  • Best experience limited to Microsoft ecosystem applications
  • Non-Microsoft application integrations can be less polished than Okta
  • Admin portal complexity — settings spread across multiple Azure portals
  • Identity Governance features require expensive P2 licensing
  • Hybrid identity (AD Connect) adds significant complexity

Okta

Pros

  • +Largest pre-built application integration network in the industry
  • +Mature, reliable cloud platform with strong uptime track record
  • +Comprehensive workforce and customer identity in one vendor
  • +Extensive adaptive authentication and risk-based access policies
  • +Strong ecosystem of partners and security integrations

Cons

  • Premium pricing — significantly more expensive than competitors at scale
  • Complex SKU structure can make cost forecasting difficult
  • Customer Identity Cloud (Auth0) remains a separate product with different admin consoles
  • Limited on-premises deployment options for regulated environments
  • Advanced features like Identity Governance require top-tier licensing

Okta vs Microsoft Entra ID FAQ

Common questions about choosing between Okta and Microsoft Entra ID.

What is the main difference between Okta and Microsoft Entra ID?

Microsoft Entra ID is the most direct competitor to Okta and the strongest choice for Microsoft-centric organizations. Where Okta excels at vendor-neutral SSO with the broadest application integration network, Entra ID provides deeper value for organizations already paying for Microsoft 365 by including identity capabilities in existing licensing. Entra ID's conditional access engine is among the most sophisticated available, while Okta offers a more consistent experience across non-Microsoft applications.

Is Microsoft Entra ID better than Okta?

Choose Microsoft Entra ID if your organization is built on Microsoft 365 and Azure — the identity capabilities included in your existing licensing make it the most cost-effective option with the deepest ecosystem integration. Choose Okta if you need a vendor-neutral identity layer that provides the best SSO experience across a diverse application landscape spanning multiple cloud providers.

How much does Microsoft Entra ID cost compared to Okta?

Microsoft Entra ID pricing: Free tier included with M365 / P1 from $6/user/month / P2 from $9/user/month. Okta pricing: Starts at $2/user/month (SSO) / Workforce Identity Cloud custom pricing. Microsoft Entra ID's pricing model is per-user monthly subscription (tiered), while Okta uses per-user monthly subscription pricing.

Can I migrate from Okta to Microsoft Entra ID?

Yes, you can migrate from Okta to Microsoft Entra ID. The migration process depends on your specific setup and the features you use. Both platforms offer APIs that can facilitate automated migration. Consider running both tools in parallel during the transition to ensure zero downtime.

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