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Microsoft Entra External ID: Australian Considerations for B2B and Customer Identity

Microsoft Entra External ID unifies Azure AD B2B and B2C capabilities, enabling secure collaboration with external partners and managing customer identities for consumer-facing applications.

Last reviewed 23 May 2026

What Entra External ID does

Entra External ID provides a single platform for managing identities beyond your organisation’s boundaries. It supports two primary use cases: B2B collaboration, allowing secure guest access for partners and vendors; and customer identity, enabling organisations to manage identities for consumers interacting with applications or portals. Features include branded sign-up pages, social identity providers (like Google and Facebook), and the ability to integrate custom claim providers for enhanced authentication.

Entra External ID in Australian tenants today

For AU mid-market organisations operating citizen portals or customer-facing applications, Entra External ID offers a streamlined approach compared to managing separate B2B and B2C deployments. Migration from Azure AD B2C is a common scenario, requiring careful planning to preserve existing user journeys and customisations. Organisations should consider the Privacy Act 2024 and OAIC guidelines when handling consumer data collected through Entra External ID, particularly regarding consent and data security. The MAU-based pricing model requires careful monitoring to optimise costs and avoid unexpected charges.

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