Entra ID vs. Okta: Choosing the Right IAM Solution for Your Organization

In today’s hybrid and multi-cloud world, identity and access management (IAM) is the foundation of enterprise security. With cyber threats on the rise and the workforce increasingly distributed, having a robust IAM solution is not a luxury—it’s a necessity.

While the market offers numerous Identity and Access Management platforms, our focus today is on two prominent solutions: Microsoft Entra ID and Okta. Both provide robust features, and the optimal choice for an organization hinges on factors such as its existing infrastructure, strategic business objectives, and specific identity requirements.

What is Microsoft Entra ID?

Microsoft Entra ID is Microsoft’s enterprise cloud-based IAM solution, integrated tightly with the Microsoft ecosystem. It supports hybrid identity setups, Single Sign-On (SSO), Multi-Factor Authentication (MFA), conditional access policies, and external identity management (B2B/B2C).

Entra ID is especially well-suited for organizations already invested in Microsoft 365, Intune, and Azure services. It also includes advanced governance features and integrates seamlessly with Microsoft Defender, Sentinel, and Purview for end-to-end security visibility.

What is Okta?

Okta is an independent, cloud-native IAM platform designed to work seamlessly across multi-cloud and multi-vendor environments. It offers strong SSO capabilities, advanced MFA, robust lifecycle management, and developer-friendly tools via Auth0 (a subsidiary).

Okta shines in organizations with diverse SaaS stacks, offering fast and flexible integration with thousands of third-party applications. Its policy engine, rich API surface, and identity workflows allow for highly customizable identity strategies.

Key Feature Comparison

FeatureMicrosoft Entra IDOkta
SSOStrong for Microsoft appsBroad SaaS support
MFAEntra MFA (built-in)Adaptive MFA with risk-based policies
Conditional AccessIntegrated with Microsoft securityCustom policies via Policy Engine
B2B/B2C SupportEntra External IDCustomer Identity Cloud
Lifecycle ManagementEntra ID GovernanceOkta Workflows & provisioning
Hybrid AD SupportFull native supportAD Agent required
IntegrationDeep with Microsoft 365, Teams, IntuneGreat with Google, AWS, Salesforce, etc.
PricingStarts Free, P1 ~$6, P2 ~$9/user/month~$2-$15/user/month based on tier

Technical Deployment: HR-Driven Provisioning (Workday Example)

Microsoft Entra ID + Workday Integration:

  1. Configure Workday as a connected app in Entra.
  2. Use Entra Provisioning Agent to connect to on-prem systems if needed.
  3. Define attribute mappings for user creation, role assignment, and group membership.
  4. Enable SCIM provisioning to synchronize data in near real-time.
  5. Configure lifecycle workflows for joiners, movers, leavers.
  6. Integrate with Entra ID Governance to enforce access reviews and entitlement management.

Okta + Workday Integration:

  1. Set up Workday as a Profile Master within Okta.
  2. Define attribute mappings for Okta Universal Directory.
  3. Enable Okta Lifecycle Management and configure provisioning rules.
  4. Use Okta Workflows to create advanced business logic (e.g., auto-assign apps on role change).
  5. Sync entitlements with downstream applications like Slack, Google Workspace, or Salesforce.
  6. Configure deprovisioning and audit logging for compliance.

Both platforms support robust lifecycle automation, but Okta offers more no-code options through its visual workflow engine, while Microsoft requires a mix of GUI, Graph API, and Power Automate/Logic Apps for advanced scenarios.

Advanced Entra ID and Okta Technical Use Cases

Adaptive Authentication and Risk-Based Conditional Access

Microsoft Entra IDDocumentationOktaDocumentation
Conditional Access with risk-based signalsConditional Access OverviewThreatInsight with behavior detectionOkta ThreatInsight
Identity Protection risk detectionIdentity Protection OverviewAdaptive MFA with network zonesOkta Adaptive MFA
Step-up authentication for sensitive resourcesStep-up AuthenticationDevice trust implementationOkta Device Trust
Dynamic group membership with complianceDynamic Membership RulesProgressive profilingProgressive Profiling

Advanced B2B and Cross-Organization Identity Federation

Microsoft Entra IDDocumentationOktaDocumentation
B2B direct federationDirect FederationMultiple IDP routingMultiple IdP Support
External identities with custom user flowsCustom User AttributesIdP discovery with domain routingIdentity Provider Discovery
Cross-tenant access settingsCross-tenant AccessMultiple authorization serversCustom Authorization Servers
SCIM provisioning with custom mappingsSCIM ImplementationDelegated authenticationDelegated Authentication

Zero Trust Network Access and Least Privilege

Microsoft Entra IDDocumentationOktaDocumentation
Just-in-Time access with PIMPrivileged Identity ManagementDevice Trust with FastPassOkta FastPass
Microsegmentation with app proxyApplication ProxyContinuous verificationContinuous Authentication
App-based Conditional AccessApp-based Conditional AccessPrivileged Access ServiceAdvanced Server Access
Passwordless authentication with FIDO2Passwordless AuthenticationVerify Push with number matchingOkta Verify with Number Challenge

Advanced Lifecycle Management

Microsoft Entra IDDocumentationOktaDocumentation
Custom provisioning with Graph APIMicrosoft Graph APILifecycle Management PlusLifecycle Management
Joiner-mover-leaver workflowsIdentity GovernanceCustom workflows with Okta WorkflowsOkta Workflows
Entitlement management with access packagesEntitlement ManagementAttribute-Based Role AssignmentGroup Rules
Periodic access reviewsAccess ReviewsJust-In-Time provisioningJIT App Provisioning

Cloud-Native Application Architecture

Microsoft Entra IDDocumentationOktaDocumentation
Fine-grained permission managementApp RolesAPI Access ManagementOAuth 2.0 and OIDC
Claims transformationToken ConfigurationMicroservice authenticationService-to-Service Authentication
Decentralized authorization with Verified IDMicrosoft Entra Verified IDCustom Authorization ServersAuthorization Server Scopes
API access control with OAuth scopesOAuth 2.0 ScopesEmbedded authenticationAuth JS SDK

When to Choose Entra ID

  • Your organization is heavily invested in Microsoft 365 or Azure.
  • You require seamless hybrid identity support with on-prem AD.
  • You’re looking for integrated security with Defender, Intune, and Sentinel.
  • You already have licensing that includes Entra P1/P2 (e.g., M365 E3/E5).

When to Choose Okta

  • You use a wide variety of SaaS applications from different vendors.
  • You prefer a vendor-agnostic IAM platform.
  • You need powerful workflows and automation for user provisioning.
  • You’re looking for a developer-friendly identity solution (via Auth0).

Common Use Cases

Entra ID:

  • Managing access to Microsoft workloads
  • Enforcing conditional access for remote workers
  • Hybrid join for Windows devices
  • Integration with Microsoft Sentinel for identity monitoring

Okta:

  • Centralized IAM across diverse SaaS tools
  • Streamlined user lifecycle management
  • Identity orchestration for custom applications
  • Rapid onboarding/offboarding via Okta Workflows

Alternatives to Okta

VendorProduct
MicrosoftEntra ID
Ping Identity or ForgeRockPingOne, PingFederate
Auth0Auth0 (Okta-owned)
JumpCloudDirectory Platform
IBMSecurity Verify
CyberArkCyberArk Identity
OneLoginOneLogin by One Identity

Final Thoughts

There is no one-size-fits-all IAM solution. Microsoft Entra ID is a natural fit for organizations embedded in the Microsoft ecosystem, while Okta shines in multi-cloud, vendor-diverse environments. Understanding your organization’s identity landscape and long-term IT strategy will help you choose the platform that not only secures but also empowers your workforce.

If your goal is to align IAM with HR systems, automate onboarding/offboarding, and enforce compliance through governance, both Entra and Okta offer mature solutions—just with different strengths.

Need help learning on IAM? Subscribe here to learn more.

Author: Harri Jaakkonen