In today's digital landscape, businesses must expertly balance security with user convenience when managing customer accounts and access. Customer Identity and Access Management (CIAM) addresses this challenge by providing specialized tools and frameworks designed specifically for customer-facing applications. These systems excel at securing and managing millions of external user identities while ensuring smooth, frustration-free experiences across all digital interactions.
Enter Microsoft Entra External ID, a modern CIAM platform built with developers in mind. This solution seamlessly embeds into your customer applications, offering powerful identity management capabilities as part of the comprehensive Microsoft Entra family. Whether you need robust security measures, the ability to scale rapidly, or flexible customization options to match your brand's unique needs, External ID delivers a sophisticated yet accessible approach to customer identity management.
What is CIAM and Why Does Your Business Need It?
Customer Identity and Access Management (CIAM) is more than just a login system – it's a comprehensive solution for managing customer identities, securing their data, and creating smooth digital experiences. Think of it as your digital front door, welcoming customers while keeping their information safe.
Key Benefits of CIAM:
Enhanced Security
Advanced threat protection
Multi-factor authentication options
Fraud detection capabilities
Secure storage of customer data
Seamless Customer Experience
Single sign-on across all your applications
Social media login integration
Self-service password reset
Progressive profiling
Scalability
Handles millions of users effortlessly
Automatic scaling during peak times
Global availability
High performance
Compliance Ready
GDPR compliance features
Data privacy controls
Consent management
Audit logging
External identity management capabilities provide powerful solutions for organizations looking to streamline their authentication and authorisation processes. By implementing dedicated customer and partner channels, organizations can effectively maintain distinct security boundaries between workforce employee identities and external collaboration tenants, enabling precise control over how partners and customers interact with applications. These platform empowers external users (customers or partners) to either establish identities with your organisation leveraging new credentials owned by you or seamlessly integrate existing ones from their own Microsoft Entra tenant, Google, or Facebook accounts.
Introducing Microsoft Entra External ID
Microsoft Entra External ID represents the next evolution in CIAM solutions from Microsoft. Released to general availability on March 15, 2024, it brings enterprise-grade identity management to customer-facing applications. A significant advantage of this system is its flexibility, allowing organizations to connect multiple customer tenants to a single workforce Entra ID tenant, effectively separating customers from partners or even segregating different customer streams. The platform's security infrastructure is built on industry-standard protocols including OAuth 2.0, OpenID Connect, and SAML 2.0, ensuring secure communication for applications requiring authenticated users while supporting federation with various identity providers when users opt to use their existing credentials. In essence it provides standardised offering when compared to a normal workforce tenant while adding additional controls to secure user sign up process and manage the end user experience.
Why Choose Entra External ID?
Cost-Effective Pricing
Free for first 50,000 monthly active users
Only AUD 0.05 (USD 0.03) per additional monthly active user
Pay only for active users, not total accounts
Predictable pricing model
Developer-Friendly Features
Native authentication libraries
Microsoft Graph API integration
Visual Studio Code extension
Custom authentication extensions
Powerful Customization
Branded sign-up experiences
Custom user attributes
Flexible authentication flows
Pre and post-registration hooks
Entra External ID vs. Azure B2C: What's Different?
Understanding the differences between these platforms is crucial for making the right choice for your business. It should start with understanding who you are trying to let into your business's applications. Having a fundalmental understanding of who owns the risks of what interactions allows you to make an informed decision on the correct "door" to use to let this user in.
For new CIAM projects you should be looking at Entra External Id or Entra ID for your Identity Provider. Only when you need high customisable sign up flows should you be considering Azure AD B2C. Here are the key differences between Entra External Id and Azure AD B2C:
Entra External ID
Built on modern Entra ID infrastructure
Seamless integration with Microsoft ecosystem
Simplified API architecture
Future-ready platform
Azure B2C
Established CIAM solution
Comprehensive feature set
Separate API structure
Currently supported but will be replaced
Migration Considerations
While there's no immediate migration path from Azure B2C to Entra External ID, here's what you need to know:
Azure B2C Current Status
Azure B2C remains fully supported
No immediate deprecation planned
Migration tools coming in future
Gradual transition recommended
Feature Gaps in Entra External ID to Consider
Apple SSO (coming soon)
Microsoft Personal Accounts integration
Native mobile SDKs
Custom policy frameworks
Best Practices for Implementation
To get the most out of Entra External ID:
Planning Phase
Know who your customer is
Know who owns the risk of these interactions
Map customer journeys
Define security requirements
Plan integration architecture
Implementation Phase
Start with pilot program
Implement progressive rollout
Monitor performance metrics
Gather user feedback
Maintenance Phase
Regular security reviews
Performance optimization
Feature updates
User experience improvements
Technical Architecture
Entra External ID operates as a dedicated tenant that:
Lives alongside your workforce tenant
Maintains separate administration
Links to workforce tenant billing
Provides isolated customer data management
Future-Proofing Your CIAM Strategy
Building a robust CIAM strategy requires careful planning and foresight. As customer expectations evolve and security threats become more sophisticated, your identity solution must be ready to adapt. Entra External ID provides a foundation for future growth, but organizations need to take proactive steps to ensure their implementation remains effective and secure over time. A well-planned CIAM strategy should address three critical areas: scalability for growth, enhanced security measures, and optimized user experience.
Consider Scalability
Plan for user growth
Account for peak usage
Monitor resource utilization
Implement caching strategies
Enhance Security
Enable adaptive authentication
Implement risk-based policies
Use conditional access
Regular security audits
Optimize User Experience
Minimize friction
Implement progressive profiling
Provide self-service options
Monitor user satisfaction
Ready to take the next step?
Our specialists are here and ready to help you with your customer identity and access management journey. Book a quick 30 minute chat with one of our specialists to see what we can do for you and see some first hand case studies.
Modern 42 as a certified Microsoft Cloud Solution Partner, we specialize in:
Defining customer vs partner channels
CIAM implementation
Azure B2C to Entra External ID transition planning
Custom authentication flows
Integration with existing systems
Contact us for a free consultation to discuss your CIAM needs and how we can help secure your customer identities while providing a seamless experience.
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