Azure AD (Entra ID) vs Okta
Identity management features, SSO, security, and which is best for enterprise authentication.
Executive Summary
Microsoft Entra ID (formerly Azure AD) is the better choice for 75%+ of enterprises because most organizations already use Microsoft 365. Entra ID is included in M365 subscriptions, provides native integration across the Microsoft ecosystem, and delivers comprehensive zero trust capabilities through conditional access, Defender, and Intune integration.
Okta excels as a platform-agnostic identity solution with the broadest app integration catalog (7,000+). It is the better choice for multi-cloud organizations with minimal Microsoft investment, or enterprises needing to federate identity across highly heterogeneous technology stacks.
Quick Comparison: Entra ID vs Okta
Feature and pricing overview for 2026
| Category | Microsoft Entra ID | Okta |
|---|---|---|
| Pricing | Free tier included with M365 P1: $6/user/mo P2: $9/user/mo | SSO: $2/user/mo MFA: $3/user/mo Enterprise: $9-$15/user/mo |
| SSO | 3,500+ pre-integrated apps | 7,000+ OIN integrations |
| MFA | Authenticator, FIDO2, phone, SMS | Okta Verify, FIDO2, push, SMS |
| Zero Trust | Conditional Access + Defender + Intune | Adaptive MFA, ThreatInsight, FastPass |
| Identity Governance | Access reviews, PIM, entitlement mgmt | Okta Identity Governance (add-on) |
| M365 Integration | Native (required for M365) | Federation (adds complexity) |
| Compliance | SOC 2, HIPAA, FedRAMP, ISO 27001 | SOC 2, HIPAA, FedRAMP, ISO 27001 |
| Best For | Microsoft-centric, M365 orgs, Azure workloads | Multi-cloud, platform-agnostic, broad app diversity |
Detailed Feature Analysis
Zero Trust & Conditional Access
Microsoft Entra ID
- Conditional Access policies evaluate 200+ signals including device compliance (Intune), location, risk level, client app, and session controls to make real-time access decisions.
- Identity Protection uses ML-based risk detection for sign-in risk and user risk, automatically blocking or requiring step-up authentication for risky sessions.
- Privileged Identity Management (PIM) provides just-in-time privileged access, access reviews, and role activation workflows for administrative accounts.
- Microsoft Defender integration correlates identity signals with endpoint, email, and cloud app threat intelligence for unified zero trust enforcement.
Okta
- Adaptive MFA adjusts authentication requirements based on context (device, location, network, behavior) with configurable risk policies.
- ThreatInsight leverages Okta's network-wide threat intelligence to block malicious authentication attempts before they reach your tenant.
- FastPass provides passwordless, phishing-resistant authentication using device-bound credentials for a seamless user experience.
- Limited endpoint correlation: Okta partners with third-party EDR/MDM tools rather than providing native endpoint security integration.
EPC Group Verdict: Entra ID wins for organizations using the Microsoft security stack. The integration between Conditional Access, Defender, Intune, and Sentinel creates a defense-in-depth zero trust model that Okta cannot replicate without multiple third-party integrations.
Total Cost of Ownership
Annual identity management costs
500 Users
Mid enterprise (M365 E3)
Entra ID P1
- Often included in M365 E3
- Standalone: $36,000/yr
- Incremental: $0 (if M365 E3)
Okta Enterprise
- SSO + MFA + Lifecycle: $54,000-$90,000/yr
- Still need Entra ID for M365
- Total: $54,000 - $90,000/yr
if included in M365 E3
2,000 Users
Large enterprise
Entra ID P2
- Included in M365 E5
- Standalone: $216,000/yr
- Incremental: $0 (if M365 E5)
Okta Enterprise
- Full suite: $216,000-$360,000/yr
- Plus Entra ID still needed
- Total: $216,000 - $360,000/yr
with Entra ID
10,000 Users
Large enterprise
Entra ID P2
- EA pricing available
- $540,000 - $1,080,000/yr
Okta Enterprise
- Volume pricing negotiated
- $900,000 - $1,800,000/yr
with Entra ID
When to Choose Entra ID
You use Microsoft 365
Entra ID is natively required for M365 and often included in E3/E5 licenses at zero incremental cost.
Azure is your cloud platform
Native Azure resource access control, managed identities, and Azure security integration provide seamless cloud governance.
Microsoft security stack is deployed
Defender, Intune, Sentinel, and Purview integrate natively with Entra ID for unified zero trust.
Identity governance is critical
PIM, access reviews, entitlement management, and lifecycle workflows are built-in for regulated industries.
When to Choose Okta
Multi-cloud or platform-agnostic strategy
Okta is cloud-neutral, providing consistent identity across AWS, GCP, and Azure without favoring any platform.
Broadest app integration needed
Okta Integration Network (OIN) has 7,000+ pre-built integrations, valuable for heterogeneous SaaS environments.
Minimal Microsoft investment
Organizations not using M365 or Azure benefit from Okta as a standalone identity platform without Microsoft ecosystem dependency.
Workforce Identity + Customer Identity
Okta Auth0 (Customer Identity Cloud) provides purpose-built CIAM alongside workforce identity in one platform.
Frequently Asked Questions
Entra ID vs Okta identity management questions
Is Azure AD (Entra ID) better than Okta?
Microsoft Entra ID (formerly Azure AD) is better for organizations using Microsoft 365, Azure, and the Microsoft security ecosystem. It provides native integration with Teams, SharePoint, Intune, Defender, and 3,500+ pre-integrated SaaS apps. Okta is better for multi-cloud, platform-agnostic organizations that need a vendor-neutral identity solution with best-in-class app integration breadth (7,000+ pre-built integrations). For Microsoft-centric enterprises, Entra ID offers 40-60% lower TCO.
How much does Azure AD cost compared to Okta?
Microsoft Entra ID Free is included with every Microsoft 365 subscription. Entra ID P1 costs $6/user/month and P2 costs $9/user/month. Okta SSO starts at $2/user/month, MFA at $3/user/month, and Lifecycle Management at $4/user/month. For equivalent enterprise features (SSO + MFA + conditional access + governance), Entra ID P2 at $9/user/month compares to Okta at $9-$15/user/month, but Entra ID is often already included in Microsoft 365 E3/E5 licenses.
Can Okta replace Azure AD for Microsoft 365?
Okta can serve as the primary identity provider (IdP) for Microsoft 365 through federation, but this adds complexity and cost. Azure AD/Entra ID is natively required for Microsoft 365 licensing and management. Using Okta as the IdP for M365 creates a dual-identity situation that increases administration overhead. For organizations heavily invested in Microsoft 365, using Entra ID as the primary IdP is simpler and more cost-effective.
Which has better zero trust capabilities?
Microsoft Entra ID has deeper zero trust capabilities when combined with the Microsoft security ecosystem (Defender, Intune, Sentinel, Purview). Conditional Access policies can evaluate device compliance, location, risk level, and application sensitivity. Okta offers strong zero trust through its Adaptive MFA, ThreatInsight, and FastPass, plus broader third-party security integration. For Microsoft-centric security stacks, Entra ID zero trust is more comprehensive.
Does Okta have better app integration than Azure AD?
Okta has the broadest pre-built app catalog with 7,000+ integrations and the Okta Integration Network (OIN). Entra ID supports 3,500+ pre-integrated apps plus custom app registration. For common enterprise SaaS apps (Salesforce, Workday, ServiceNow, etc.), both platforms provide excellent integration. Okta advantage is in the long tail of niche applications. For Microsoft apps (Teams, SharePoint, Power BI, Azure), Entra ID integration is native and superior.
Which is better for compliance: Entra ID or Okta?
Both platforms hold major compliance certifications (SOC 2, ISO 27001, FedRAMP). Microsoft Entra ID has an advantage for organizations needing integrated compliance through Microsoft Purview (data governance), Microsoft Defender (threat protection), and Sentinel (SIEM). Entra ID also supports HIPAA BAAs through Microsoft enterprise agreements. Okta provides compliance through its own certifications plus partner integrations for governance.
Need Help with Identity & Access Management?
EPC Group designs and implements enterprise identity solutions using Microsoft Entra ID, conditional access, and zero trust frameworks. Schedule a complimentary security assessment.
About the Author
Errin O'Connor is the Founder and Chief AI Architect at EPC Group with over 29 years of enterprise consulting experience. He has designed identity and access management architectures for Fortune 500 organizations across healthcare, financial services, and government.
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Azure AD (Entra ID) vs Okta: Enterprise Identity Comparison
Microsoft Entra ID (formerly Azure AD) and Okta both provide enterprise SSO, MFA, and Zero Trust identity management. Entra ID wins for Microsoft 365 organizations, Microsoft security stack integration, and regulated industries. Okta wins for multi-cloud, platform-agnostic environments and broader third-party app integration. Pricing, features, and TCO differ significantly at scale.
Quick comparison: Entra ID vs Okta
| Category | Microsoft Entra ID (Azure AD) | Okta |
|---|---|---|
| Primary strength | Microsoft 365 and Azure integration | Third-party app breadth and multi-cloud SSO |
| SSO app catalog | 3,500+ pre-integrated apps | 7,000+ pre-integrated apps |
| Zero Trust | Conditional Access, Identity Protection, PIM, Defender integration | Adaptive MFA, ThreatInsight, FastPass passwordless |
| Pricing (P1) | Entra ID P1: $6/user/month | Okta Workforce Identity: $2–$15/user/month by tier |
| Pricing (P2/advanced) | Entra ID P2: $9/user/month | Okta Enterprise: custom pricing |
| Microsoft 365 integration | Native — included with M365 licensing | Supported but requires configuration |
| Endpoint integration | Native with Intune and Defender for Endpoint | Partner integrations with third-party MDM/EDR |
| Governance | Entra ID Governance: access reviews, entitlement management, PIM | Okta Identity Governance (separate license) |
| Customer Identity | Entra External ID (B2C) | Okta Customer Identity (CIAM) |
Detailed feature analysis
Zero Trust and Conditional Access
Microsoft Entra ID
- Conditional Access evaluates 200+ signals — device compliance, location, risk level, client app, and session controls — to make real-time access decisions.
- Identity Protection uses ML-based risk detection for sign-in and user risk. It blocks or requires step-up authentication for risky sessions automatically.
- Privileged Identity Management (PIM) provides just-in-time privileged access, access reviews, and role activation workflows for admin accounts.
- Microsoft Defender integration correlates identity signals with endpoint, email, and cloud app threat intelligence for unified Zero Trust enforcement.
Okta
- Adaptive MFA adjusts authentication requirements based on context: device, location, network, and behavior — with configurable risk policies.
- ThreatInsight uses Okta's network-wide threat intelligence to block malicious authentication attempts before they reach your tenant.
- FastPass provides passwordless, phishing-resistant authentication using device-bound credentials.
- Limited endpoint correlation — Okta partners with third-party EDR/MDM tools rather than providing native endpoint security integration.
Total cost of ownership: side-by-side scenarios
500 users
- Entra ID P1 — $6/user/month × 500 = $3,000/month ($36,000/year). Often already included with Microsoft 365 E3.
- Okta Enterprise — Pricing varies. Typically $6–$10/user/month at 500 users = $3,000–$5,000/month.
2,000 users
- Entra ID P2 — $9/user/month × 2,000 = $18,000/month ($216,000/year). Includes PIM, access reviews, Identity Protection.
- Okta Enterprise — Custom pricing at this scale. Typically negotiated below list rate.
10,000 users
- Entra ID P2 — $9/user/month × 10,000 = $90,000/month. Includes full Entra ID Governance suite.
- Okta Enterprise — Custom pricing. Governance features require separate Okta Identity Governance license.
- Key factor: Microsoft 365 E3 and E5 include Entra ID P1 and P2 respectively. Organizations already paying for E3 or E5 may have Entra ID at no incremental cost.
When to choose Entra ID
- You use Microsoft 365 — Entra ID P1 is included in E3. Conditional Access, MFA, and SSO are already licensed. Using Okta alongside M365 adds cost and complexity.
- Azure is your cloud platform — Entra ID is the native identity layer for all Azure services. Managed identities, RBAC, and Conditional Access integrate without configuration.
- Microsoft security stack deployed — Defender for Endpoint, Defender for Cloud Apps, and Sentinel correlate identity signals from Entra ID for unified security operations.
- Identity governance is critical — Entra ID Governance (included in P2) covers access reviews, entitlement management, lifecycle workflows, and PIM with the deepest native integration.
When to choose Okta
- Multi-cloud or platform-agnostic strategy — Okta's 7,000+ app catalog and AWS, GCP, and Azure connectors make it stronger for organizations running multiple cloud platforms.
- Broadest app integration needed — Okta pre-integrates with more third-party SaaS apps than Entra ID's 3,500-app catalog.
- Minimal Microsoft investment — Organizations without Microsoft 365 or Azure do not benefit from Entra ID's native integrations.
- Workforce Identity + Customer Identity — Okta's CIAM platform is more mature for customer-facing identity needs than Entra External ID.
Frequently asked questions
Is Azure AD (Entra ID) better than Okta?
For Microsoft 365 organizations, yes. Entra ID P1 is often included in existing M365 licensing at no incremental cost. Entra ID integrates natively with Intune, Defender, Teams, and SharePoint. Okta is better for multi-cloud environments without significant Microsoft investment.
How much does Azure AD cost compared to Okta?
Entra ID P1 costs $6/user/month. Entra ID P2 costs $9/user/month. Both are often included in Microsoft 365 E3 or E5 licensing. Okta Workforce Identity pricing starts at approximately $2/user/month for basic SSO and scales to $15+/user/month for advanced governance and lifecycle management.
Can Okta replace Azure AD for Microsoft 365?
Okta can handle SSO for Microsoft 365 apps. But it cannot replace Entra ID for Conditional Access on Azure services, Intune device compliance policies, Defender integration, or Entra ID Governance workflows. Most Microsoft 365 organizations use Entra ID as the primary identity system even if they add Okta.
Which has better Zero Trust capabilities?
Entra ID has deeper Zero Trust integration for Microsoft environments. Conditional Access evaluates 200+ signals and integrates natively with Intune, Defender for Endpoint, and Sentinel. Okta's Adaptive MFA and ThreatInsight are strong for third-party app access but lack native Microsoft security integration.
Which is better for compliance: Entra ID or Okta?
Both meet HIPAA, SOC 2, FedRAMP, and GDPR requirements. Entra ID has a compliance advantage for organizations already using Microsoft Purview — sensitivity labels, DLP, and audit logs flow natively from Entra ID through the Microsoft compliance stack. Okta requires separate integration for these controls.
Need help with identity and access management?
Talk to a senior Microsoft identity architect about Entra ID or IAM strategy. Call (888) 381-9725 or request a 30-minute discovery call.