Okta vs Microsoft Entra ID: In-Depth Comparison for Enterprise IAM

01Executive Summary

Choosing between Okta and Microsoft Entra ID (formerly Azure Active Directory) is one of the most important decisions for enterprise identity and access management. Both are industry leaders, but they excel in different scenarios.

Quick Recommendation:

• Choose Okta if: You need best-in-class identity with vendor neutrality and extensive third-party integrations
• Choose Microsoft Entra ID if: You're heavily invested in Microsoft 365 and Azure ecosystems

02Company Overview

Okta

• Founded: 2009
• Headquarters: San Francisco, CA
• Public Since: 2017 (NASDAQ: OKTA)
• Focus: Identity-first, vendor-neutral approach
• Key Acquisition: Auth0 (2021) - Developer identity platform

Microsoft Entra ID

• Launched: 2010 (as Azure AD)
• Rebranded: 2023 (as Microsoft Entra ID)
• Parent Company: Microsoft Corporation
• Focus: Integrated Microsoft ecosystem security
• Integration: Native to Microsoft 365, Azure, Windows

03Feature Comparison

Single Sign-On (SSO)

Winner: Okta - More pre-built integrations and better support for non-Microsoft applications.

Multi-Factor Authentication (MFA)

Winner: Tie - Both offer comprehensive MFA with slight differences in implementation.

Lifecycle Management

Winner: Okta - More mature provisioning with better third-party HR system support.

Security & Compliance

Winner: Microsoft Entra ID - Deeper security analytics and native integration with Microsoft security stack.

04Pricing Comparison

Okta Pricing (Per User/Month)

Microsoft Entra ID Pricing (Per User/Month)

Winner: Microsoft Entra ID - Better value if you're already in Microsoft ecosystem.

05Integration Capabilities

Okta Integrations

Strengths:

• 7,500+ pre-built integrations
• Excellent SaaS application support
• Strong developer tools and APIs
• Okta Integration Network (OIN)

Key Integrations:

• Salesforce, Workday, ServiceNow
• AWS, GCP, all major cloud platforms
• Slack, Zoom, Box
• Any SAML/OIDC application

Microsoft Entra ID Integrations

Strengths:

• Native Microsoft 365 integration
• Deep Azure integration
• Windows device management
• Microsoft security ecosystem

Key Integrations:

• Microsoft 365, Azure, Dynamics
• Teams, SharePoint, Power Platform
• Windows Autopilot
• Microsoft Defender suite

Winner: Depends on your environment

• Multi-cloud/SaaS-heavy: Okta
• Microsoft-centric: Entra ID

06Use Case Recommendations

Choose Okta When:

1. You have a diverse application landscape: Many third-party SaaS applications
2. You need vendor neutrality: Don't want to be locked into Microsoft
3. You prioritize best-of-breed IAM: Identity is your primary focus
4. You have complex provisioning needs: Multiple HR systems, complex workflows
5. You're a developer-focused organization: Need Auth0 capabilities

Choose Microsoft Entra ID When:

1. You're heavily invested in Microsoft: M365, Azure, Windows
2. You want integrated security: Microsoft Defender, Sentinel
3. Budget is a primary concern: Already paying for M365
4. You need Windows management: Device and identity together
5. You want a single vendor: Simplicity over best-of-breed

Consider Both (Hybrid) When:

1. You have Microsoft and diverse SaaS: Use Entra ID for Microsoft, Okta for others
2. You're in a transition period: Migrating to or from Microsoft
3. You have specific compliance requirements: Different regions or regulations

07Migration Considerations

Migrating to Okta

Pros:

• Excellent migration tools
• Professional services available
• Phased approach possible

Cons:

• Can be complex for large enterprises
• May require application reconfiguration
• User re-enrollment for MFA

Migrating to Microsoft Entra ID

Pros:

• Seamless if already using M365
• Integrated tooling available
• Good documentation

Cons:

• May lose some advanced features
• Complex for non-Microsoft applications
• Potential licensing changes

08Real-World Decision Framework

Ask yourself these questions:

1. What percentage of your applications are Microsoft?

   • 70%: Lean toward Entra ID

   • <50%: Lean toward Okta

2. What's your cloud strategy?

   • Azure-first: Entra ID
   • Multi-cloud: Okta

3. What's your budget situation?

   • Already paying for M365: Consider Entra ID
   • Greenfield: Evaluate both

4. How important is vendor independence?

   • Critical: Okta
   • Not important: Either

5. What's your security stack?

   • Microsoft security: Entra ID
   • Best-of-breed security: Either

09Conclusion

Both Okta and Microsoft Entra ID are excellent identity platforms. The best choice depends on your existing technology investments, application landscape, and strategic priorities.

Our Recommendation:

• Most Microsoft shops: Start with Entra ID P2, consider Okta for specific needs
• Diverse environments: Okta provides better flexibility
• Startups: Consider Auth0 (Okta) for developer-friendly identity

Whatever you choose, ensure you have a clear identity strategy and implement strong security practices like MFA and Zero Trust principles.