Have your external identities connect using Microsoft Entra External ID

14 May 2024

Coming from the world of Active Directory, managing users was always a daunting task for me, especially when some organizational structures had complex structures with so many organization units to define and process. Microsoft did, however, build on this foundation to serve a more secure use case within cloud managed and hybrid environments, namely, Microsoft Entra ID.

Apart from its name being changed from Active Directory and Azure Active Directory, a few added features and solutions have been launched recently. In today’s interconnected digital environment, managing external identities has become as crucial as safeguarding internal assets.

I’ve spent years navigating the intricate world of cybersecurity, and I'm excited to share how Microsoft Entra External ID is setting new standards. This tool is not just improving security but also streamlining interactions across various platforms, making it a game-changer for businesses worldwide.

The Evolution of Identity Management

To appreciate the innovation behind Microsoft Entra External ID, it's essential to look back at the evolution of identity management. Initially, identity systems were siloed, designed solely for internal use within an organization. Each application or service managed its own set of user credentials, leading to a fragmented and often insecure landscape.

In the early days of computing, identity management was simple but isolated. Each system had its own local authentication, typically consisting of a username and password stored locally. This worked well when networks were small and contained within a single organization. However, as computer networks expanded and organizations began to rely on multiple systems, this approach quickly became unmanageable.

The need for centralized identity management gave rise to directory services like LDAP and Microsoft Active Directory (AD). These allowed organizations to manage internal user identities in a centralized manner. However, they were still largely focused on internal users and didn't address the challenges of managing external identities.

As the internet grew, so did the need for more sophisticated identity management systems. The introduction of federated identity and single sign-on (SSO) technologies marked a significant advancement, allowing users to access multiple applications with one set of credentials. Yet, these systems were primarily focused on internal identities.

The rise of cloud computing has introduced new challenges and opportunities. Organizations now needed to manage not only internal identities but also identities of external users such as partners, vendors, and customers. This shift required a new approach to ensure seamless yet secure interactions across organizational boundaries.

Recognizing the need for more flexible external identity management, Microsoft introduced Azure AD B2B (Business-to-Business) and B2C (Business-to-Consumer). Azure AD B2B allowed organizations to securely share applications and services with external partners, while B2C enabled businesses to provide seamless, branded sign-in experiences for their customers. Despite their capabilities, implementing and managing these services required specialized knowledge and could be complex.

What can we expect with Microsoft Entra External ID?

Microsoft Entra External ID is the culmination of decades of advancements in identity management technology. Microsoft Entra External ID is part of the Microsoft Entra family, providing a unified identity platform that brings together all your identity needs. It seamlessly integrates with Microsoft Entra ID (formerly Azure AD) to offer a consistent experience for both internal and external identities.

This solution is designed to simplify how organizations handle identities of external users. What sets Entra External ID apart is its ability to enable secure and seamless collaboration across company lines without compromising on control or compliance.

  • Seamless Integration: One of the standout features of Microsoft Entra External ID is its seamless integration capabilities. It easily connects with existing IT infrastructures, meaning that organizations can implement it without overhauling their current systems. This integration extends across Microsoft’s cloud services and various third-party applications, ensuring a cohesive identity management experience.
  • Unparalleled Security: Security is at the heart of Microsoft Entra External ID. It employs advanced security protocols to manage access and authentication, significantly reducing the risk of data breaches. By leveraging conditional access policies, it ensures that only the right people have the right access at the right time, depending on the context of their request.
  • Enhanced User Experience: Microsoft Entra External ID enhances the user experience by eliminating the need for multiple logins and passwords for external users. This not only simplifies the user’s interaction but also enhances productivity by reducing password fatigue and support calls related to password recovery.
Real world Examples of Microsoft Entra ID
  • Partner Collaboration: A manufacturing company needs to share sensitive project data with multiple suppliers. Using Entra External ID, the company can securely invite suppliers to access the project portal using their own organizational credentials. Conditional Access ensures that only authorized users with secure devices can access the portal.

  • Customer Portal: An e-commerce business wants to improve customer engagement by offering a personalized shopping experience. With Entra External ID, the business can enable social logins, allowing customers to sign in using their preferred social accounts. The business can then apply targeted marketing strategies based on the customer's identity data.

The New Era of Identity Collaboration

We are standing at the threshold of a new era in identity management. With Microsoft Entra External ID, organizations can now embrace a more integrated, secure, and user-friendly approach to managing external identities. Whether you are dealing with customers, partners, or remote contractors, Entra External ID ensures that each identity is managed with the utmost efficiency and security.

As we move forward, the importance of robust identity management systems like Microsoft Entra External ID will only grow. Do contact your Surestep Ambassador team for more information at This email address is being protected from spambots. You need JavaScript enabled to view it. as it’s not just about protecting your customers resources, it’s about enabling your customer’s business growth, enhancing their collaborations, and building trust across all their digital spaces.

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