Short answer: choose Microsoft Entra ID (formerly Azure Active Directory) if your organization runs on Microsoft 365, Windows and Azure, because you already have it, some Microsoft 365 subscriptions include its premium features, and its Conditional Access ties identity to Intune device compliance natively. Choose Okta if you run a mixed, SaaS-heavy stack (Google Workspace, Mac fleets, many non-Microsoft apps, several clouds) and want a vendor-neutral identity provider with a very large prebuilt integration catalog and strong no-code lifecycle automation. Many enterprises run both: Okta as the identity provider for apps, federated to the Entra ID tenant that every Microsoft 365 customer has anyway.
This comparison covers the workforce identity use case: single sign-on (SSO), multi-factor authentication (MFA), directory, provisioning, conditional access, governance and hybrid Active Directory. For customer identity (sign-up and login for your own app), the right comparison is different; see our guide to customer identity and access management (CIAM) software.
Okta vs Microsoft Entra ID at a Glance
| Capability | Okta Workforce Identity | Microsoft Entra ID |
|---|---|---|
| Positioning | Independent, vendor-neutral identity cloud | Identity layer of Microsoft 365 and Azure |
| Directory | Okta Universal Directory; connects to AD and LDAP through lightweight agents | Entra ID tenant directory; syncs with on-premises AD through Entra Connect or Cloud Sync |
| SSO protocols | SAML 2.0, OpenID Connect, OAuth 2.0, WS-Federation (for Microsoft 365) | SAML 2.0, OpenID Connect, OAuth 2.0, WS-Federation, Kerberos-based options for on-premises apps via Application Proxy |
| App integrations | Okta Integration Network: thousands of prebuilt SSO and provisioning integrations | Entra app gallery: thousands of prebuilt integrations, deepest for Microsoft workloads |
| Provisioning | SCIM and API-based Lifecycle Management; HR-as-a-source from many HRIS tools | SCIM provisioning; inbound HR provisioning from systems such as Workday and SuccessFactors |
| MFA and passwordless | Okta Verify push, FastPass passwordless, FIDO2 security keys and passkeys, adaptive risk policies | Microsoft Authenticator, Windows Hello for Business, FIDO2 security keys and passkeys, risk-based policies |
| Access policies | Authentication and app sign-on policies using user, device, network and risk context | Conditional Access, natively tied to Intune device compliance and Microsoft risk signals |
| No-code automation | Okta Workflows for identity automation across apps | Lifecycle workflows (governance tier), plus Logic Apps and Power Automate for custom flows |
| Governance | Okta Identity Governance add-on: requests, certifications, lifecycle | Entra ID Governance add-on: access reviews, entitlement management, lifecycle workflows |
| Privileged access | Okta Privileged Access for servers and privileged accounts | Privileged Identity Management (PIM) for just-in-time Entra and Azure roles |
| Reporting | System log, reports, streaming to SIEM | Sign-in and audit logs, export to Microsoft Sentinel and other SIEMs |
| Pricing model | Per user per month, sold in suites, annual contract | Per user per month in tiers; premium tiers included in some Microsoft 365 bundles |
Both vendors publish list prices, and they change. Check current pricing on Okta’s pricing page and Microsoft’s Entra pricing page.
Is Okta Better Than Azure AD (Microsoft Entra ID)?
Neither is better in general; each is better in a specific environment.
- Okta tends to win when the application estate is broad and mostly non-Microsoft, when the company uses Google Workspace, when Macs dominate, when there are several clouds, or after mergers where no single Microsoft tenant is the natural center. Its integration catalog, admin experience and Workflows automation are the usual reasons IT teams pick it.
- Entra ID tends to win when Microsoft 365, Windows, Intune and Azure are the core. You already operate an Entra ID tenant for Microsoft 365, identity and device policy live in the same place, and the incremental cost can be low if your Microsoft 365 plan already includes premium Entra features.
The deciding factor is rarely a missing feature. Both support modern SSO protocols, SCIM provisioning, phishing-resistant MFA and conditional policies. It is usually cost after bundles, where your devices are managed, and which admin team will own identity day to day.
Okta vs Entra ID for Single Sign-On
For SaaS SSO the two are closer than their marketing suggests. Both support SAML and OpenID Connect and both have large prebuilt catalogs. Differences show up at the edges:
- Breadth of prebuilt integrations with provisioning. Check your own top 30 apps in each catalog, and specifically whether each app supports automated provisioning and deprovisioning, not just SSO.
- On-premises web apps. Entra ID Application Proxy publishes internal web apps with SSO without a VPN. Okta covers on-premises apps through its access gateway and agents. If you have many legacy header-based or Kerberos apps, test both.
- End-user experience. Okta’s dashboard and Entra’s My Apps portal both work; users mostly care that MFA prompts are rare and predictable.
For the wider SSO market, including the “SSO tax” some SaaS vendors charge, see our guide to the best SSO software.
MFA, Passwordless and Conditional Access
Both platforms support phishing-resistant authentication with FIDO2 security keys and passkeys, plus push-based MFA through their own authenticator apps (Okta Verify and Microsoft Authenticator). Okta FastPass and Windows Hello for Business provide device-bound passwordless sign-in.
The biggest structural difference is policy. Entra ID Conditional Access reads Intune compliance state and Microsoft risk signals directly, which makes “only compliant, managed devices can open Microsoft 365” straightforward to enforce in a Microsoft shop. Okta policies can use device context too, including from its own FastPass signals and integrations with endpoint tools, and they apply consistently across non-Microsoft apps. If your device management is Intune, Entra has a natural advantage; if it is Jamf, Kandji or a mix, Okta’s neutrality helps. See our guides to MDM software and endpoint management software. For standalone MFA options, see the best MFA software.
Provisioning and Lifecycle Management
Automated joiner, mover and leaver processes are where identity programs save the most admin time. Both platforms can use an HR system as the source of truth and push accounts to downstream apps through SCIM or APIs.
- Okta Lifecycle Management plus Okta Workflows is a strong pairing for SaaS-heavy companies: Workflows lets admins build multi-step identity automation (for example, create accounts, assign licenses, post to Slack, open a ticket) without code.
- Entra ID offers inbound provisioning from major HR systems and SCIM outbound provisioning, with lifecycle workflows in the governance tier for tasks such as pre-hire and leaver actions. Custom automation often uses Logic Apps or Power Automate.
Identity Governance and Privileged Access
Both vendors sell governance add-ons. Entra ID Governance covers access reviews, entitlement management with access packages, and lifecycle workflows. Okta Identity Governance covers access requests, certifications and lifecycle automation. Both are good fits for SaaS-centric audit scope; organizations with ERP separation-of-duties needs or many on-premises apps often add a dedicated IGA platform. See the best identity governance software and SailPoint alternatives.
For privileged access, Microsoft’s PIM provides just-in-time elevation for Entra and Azure roles, and Okta Privileged Access covers server access and privileged accounts. Neither fully replaces a dedicated PAM vault for large server estates. See the best privileged access management software for that layer.
Hybrid Active Directory
If you still run on-premises Active Directory, both platforms can use it:
- Entra ID syncs users, groups and password hashes (or uses pass-through or federated authentication) with Entra Connect or the lighter Cloud Sync. This is the standard path for Microsoft 365 customers.
- Okta connects to AD through lightweight AD agents that import users and can delegate authentication to AD. Okta can also master users in Universal Directory and push them to AD.
Important detail: even with Okta as your primary identity provider, Microsoft 365 still relies on an Entra ID tenant. In an Okta-first design, Okta federates sign-in to Microsoft 365 and users are provisioned into Entra ID. That is why many organizations end up running both.
Can You Use Okta and Entra ID Together?
Yes, and it is common. Typical patterns:
- Okta as the identity provider, Entra ID as the Microsoft 365 directory. Okta handles SSO and MFA for all apps, including Microsoft 365 through federation, and provisions users into Entra ID.
- Entra ID as the identity provider, Okta retained for specific apps or subsidiaries during a merger or migration.
- Entra ID for employees, Okta (or Auth0, which Okta owns) for customer identity. This splits workforce and customer identity cleanly.
Running both costs more and adds a second policy surface, so be deliberate about which one is the source of truth for MFA and access policy.
Okta vs Azure AD Pricing Models
Both charge per user per month, but the effective cost differs because of bundling.
- Okta sells Workforce Identity in suites of increasing capability, billed annually, with add-ons such as Identity Governance and Privileged Access. See Okta pricing (check current pricing).
- Microsoft sells Entra ID in tiers (a free tier comes with Microsoft cloud subscriptions, plus premium tiers), and some Microsoft 365 enterprise and business plans include premium Entra ID features. Entra ID Governance is an add-on. See Entra pricing (check current pricing).
To compare fairly, list which Microsoft 365 plans you already own and what Entra features they include, then price only the Okta suites and add-ons you would need on top. Include admin time: a single identity platform is cheaper to run than two. Spotsaas also has an Okta pricing overview.
Migrating Between Okta and Entra ID
Whichever direction you go, the work follows the same checklist:
- Inventory apps by protocol (SAML, OIDC, WS-Fed, header-based, LDAP, RADIUS) and whether provisioning is enabled.
- Map policies: MFA requirements, device conditions, network zones and session lifetimes.
- Re-register MFA factors and plan user communication; this is the step users notice.
- Move apps in waves, starting with low-risk SaaS apps, then Microsoft 365 federation, then legacy apps.
- Rebuild automations (Okta Workflows or Logic Apps) and governance campaigns.
- Keep audit logs from the old platform for the retention period your auditors expect.
How to Choose Between Okta and Microsoft Entra ID
- Your core productivity suite is Microsoft 365 and devices are in Intune: start with Entra ID, and check what your plans already include.
- You use Google Workspace, many SaaS apps and mixed devices: Okta is usually the cleaner fit.
- You need heavy no-code identity automation: trial Okta Workflows against Logic Apps or Power Automate with a real joiner flow.
- You are merging companies with different stacks: Okta’s neutrality helps as a hub; Entra ID works well once everyone is on one Microsoft tenant.
- Budget is the constraint: price the Microsoft bundle you already own first.
Compare more identity providers in our guide to the best IAM tools, or see Okta alternatives, and review product data for Okta, Microsoft Entra ID and the Entra ID vs Okta comparison on Spotsaas.
Frequently Asked Questions
Is Azure AD the same as Microsoft Entra ID?
Yes. Microsoft renamed Azure Active Directory to Microsoft Entra ID. The service, tenants and integrations carried over; only the name and some admin portal branding changed.
Can Okta replace Microsoft Entra ID?
Not completely if you use Microsoft 365. Okta can be the identity provider for sign-in and MFA, federated to Microsoft 365, but Microsoft 365 still relies on an Entra ID tenant in the background.
Which is cheaper, Okta or Entra ID?
For Microsoft 365 customers, Entra ID is often cheaper because premium features may already be in their Microsoft plan. For non-Microsoft shops, compare Okta suites against standalone Entra tiers with the add-ons you need.
Does Okta work with Active Directory?
Yes. Okta’s AD agents import users and groups from on-premises Active Directory and can delegate authentication to it, so you can adopt Okta without removing AD first.
Which has better conditional access?
In Microsoft environments, Entra ID Conditional Access is hard to beat because it reads Intune compliance and Microsoft risk signals natively. In mixed environments, Okta policies apply more evenly across non-Microsoft apps and device tools.
Do Okta and Entra ID support SCIM?
Both do. Each can provision and deprovision users in SCIM-enabled apps, and both can take an HR system as the source of truth for joiners, movers and leavers.
Who owns Auth0?
Okta owns Auth0. Auth0 is sold as Okta’s customer identity platform, while Okta Workforce Identity covers employees.
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