Azure B2C replacement. Seamless migration to Entra External ID.
It is time to migrate your Azure B2C to Microsoft Entra External ID. These migrations can involve significant complexity and require careful planning and design. Modern 42 has the expertise and delivery experience you need to rebuild your CIAM channel on the new platform.

B2C P2 (Identity Protection) was retired in March 2026. If you relied on risk-based Conditional Access or risky sign-in detection, that functionality is already gone. Full B2C end of support follows in May 2030.
Azure B2C replacement: how Entra External ID compares.
Understanding the Azure B2C replacement is the first step in planning your migration. Entra External ID is not a rebrand of B2C. It is a fundamentally different platform built on the core Entra ID infrastructure.
What we migrate.
A B2C to Entra External ID migration is not a lift-and-shift. Custom policies must be rebuilt, passwords cannot be exported, and every application integration needs to be updated. We cover the full scope.
- User directory including profiles, custom attributes, extension properties, and external identity links
- Credentials including password migration strategy (JIT, bulk reset, parallel run, or passwordless)
- Authentication flows with custom policies reverse-engineered and rebuilt as native Entra External ID flows
- Application integrations including OIDC/OAuth configuration, token endpoints, session management, and claims mapping
- Federation and identity providers including social logins, enterprise federation, and SAML/OIDC providers
- MFA configuration including migration from phone-based MFA to Authenticator, FIDO2, or passkeys
- Conditional Access and security policies
Full migration lifecycle support.
Modern 42 supports Australian organisations across the full B2C to Entra External ID migration lifecycle.
- Migration Readiness Assessments
- Architecture design and migration strategy
- Policy and identity flow redesign
- Application and identity integration updates
- Bespoke requirements such as support for delegated access management to partner organisations using Apporetum
- Phased migration and production cutovers
- Post migration identity observability and user access review capability
Password migration approaches.
B2C passwords are one-way hashed and cannot be exported. There are four approaches, each with different trade-offs.
Bulk migration with forced password reset
01Export user profiles via Microsoft Graph API, import to Entra External ID, and require users to reset passwords on first login.
- Straightforward to implement
- Best for under 10,000 users or internal applications
- Not suitable for large consumer-facing applications
Just-in-time migration
RecommendedA custom authentication extension validates credentials against B2C on first login and migrates the password silently. Users experience no disruption.
- Zero user friction, passwords migrate transparently
- Preferred approach for enterprise migrations at any scale
- Custom Azure Function validates against B2C in real time
Parallel run
03Run both platforms simultaneously, routing users to Entra External ID progressively over time.
- Controlled, gradual migration with lowest cutover risk
- Best for very large or sensitive user populations
- Requires managing two live identity platforms during transition
Go passwordless
Security upliftEliminate passwords entirely. Enrol users in passkeys, FIDO2, or Authenticator during their first sign-in to Entra External ID.
- No password migration problem to solve
- Upgrades security posture as part of the migration
- Passkeys and FIDO2 are phishing-resistant by design
A structured approach to every migration.
Every engagement follows a proven four-phase delivery model. Timelines are indicative and adjusted based on your B2C complexity, user volume, and number of integrated applications.
Discovery & Architecture (2 to 4 weeks)
Current-state inventory of B2C tenants, applications, custom policies, and identity providers. We produce a migration architecture document, credential strategy, and risk register.
Discovery & Architecture (2 to 4 weeks)
Current-state inventory of B2C tenants, applications, custom policies, and identity providers. We produce a migration architecture document, credential strategy, and risk register.
Build & Pilot (4 to 8 weeks)
Stand up the Entra External ID tenant, implement JIT migration infrastructure, rebuild custom authentication flows, and pilot with one or two applications.
Build & Pilot (4 to 8 weeks)
Stand up the Entra External ID tenant, implement JIT migration infrastructure, rebuild custom authentication flows, and pilot with one or two applications.
Migration & Cutover (varies by user volume)
Phased user migration, application cutover, monitoring dashboards, and runbooks. We migrate progressively to manage risk and validate at each stage.
Migration & Cutover (varies by user volume)
Phased user migration, application cutover, monitoring dashboards, and runbooks. We migrate progressively to manage risk and validate at each stage.
Stabilisation & Handover (2 to 4 weeks)
Post-migration support, edge case resolution, team knowledge transfer, and decommission planning for the B2C tenant.
Stabilisation & Handover (2 to 4 weeks)
Post-migration support, edge case resolution, team knowledge transfer, and decommission planning for the B2C tenant.
The clock is ticking.
Microsoft's investment in CIAM is now entirely in Entra External ID. Organisations still on B2C are already losing functionality.
March 2026
B2C P2 retired
Identity Protection, risk-based Conditional Access, and risky sign-in detection are no longer available in B2C. This has already happened.
May 2030
Full B2C end of support
Microsoft will end all support for Azure AD B2C. No security patches, no bug fixes, no SLA.
Now
All new CIAM investment
Every new CIAM feature, integration, and security capability from Microsoft is being built exclusively for Entra External ID.

Built for Australian regulatory requirements.
Every CIAM migration touches identity data subject to Australian regulation. We are 100% Australian-owned with AGSVA-cleared engineers and we build compliance into the migration from day one.
Financial services
APRA & AUSTRAC
APRA CPS 234 requires regulated entities to maintain identity governance controls for customer-facing systems. AUSTRAC obligations around customer verification apply to every sign-up and authentication flow. We design Entra External ID configurations that satisfy both from the outset.
Healthcare
Digital Health Agency & My Health Record
Patient identity flows must meet Australian Digital Health Agency requirements. We have experience integrating Entra External ID with My Health Record APIs and FHIR-based patient identity standards, ensuring compliant consumer health identity across your digital channels.
Government
Digital ID Act & ASD ISM
The Digital ID Act 2024, the Australian Government Digital Identity System (AGDIS), and myID federation create specific requirements for citizen-facing identity platforms. We build Entra External ID environments that align with ASD ISM controls for public-facing authentication.
All sectors
Privacy Act & APPs
Every user profile in an Entra External ID tenant is subject to the Privacy Act 1988 and the Australian Privacy Principles. We ensure your CIAM migration addresses APP obligations around collection, storage, use, and disclosure of consumer identity data. This includes cross-border data flow considerations for Azure tenancies.
Common questions
Everything you need to know about migrating from Azure AD B2C to Microsoft Entra External ID.

Microsoft Cloud Security Partner
Modern 42 is a recognised Microsoft Solutions Partner for Security with the Identity and Access Management designation. Verify on Microsoft
Let’s talk about your identity platform
No pitch decks. No pressure. Just a straightforward conversation about your Entra ID environment, what’s working, and what needs to change.
- Review your current Entra ID and identity architecture
- Identify migration paths and modernisation opportunities
- Get practical engineering guidance — no strings attached
Free 30 min discussion
No commitment required
Book a time that works for you. We’ll come prepared with initial observations about your identity platform and common engineering challenges.