Okta vs Microsoft Entra ID
Okta and Microsoft Entra ID both sell workforce identity: single sign-on, multifactor authentication and user lifecycle management. This page compares them on licensing, app integrations, Active Directory and on-premises apps, HR-driven provisioning, access policy, and governance and privileged access, and says which fits which situation.
Microsoft 365 E3 includes Entra ID P1. Microsoft 365 E5 includes Entra ID P2. Okta is bought separately, as per-user suites billed annually.
Prices and other facts are as of November 5, 2026. Vendors change prices; confirm them on the vendor’s own pricing page. Independent analysis: neither project nor any vendor named here paid for or reviewed this page.
The short answer
Choose Okta when
- a termination in Workday must reach your identity provider in real time
- you want lifecycle management, access governance and privileged access in one per-user suite
- you run many apps outside Microsoft and want a catalog of over 7,000 integrations
Choose Microsoft Entra ID when
- you already license Microsoft 365 E3 or E5, which include Entra ID P1 or P2
- access rules should require a device marked compliant or a hybrid-joined device
- on-premises web apps should be published through a connector included with P1
Who sells each
Okta, Inc. trades on Nasdaq as OKTA. It sells two platforms, the Okta Platform and the Auth0 Platform. As of January 31, 2026, it had more than 20,000 customers, including 5,100 with annual contract value over $100,000. Its annual report names Microsoft as its principal competitor. The same report says Okta often coexists with competitors' products at the same customer.
Microsoft Entra ID is Microsoft's cloud identity and access management service. It was called Azure Active Directory until Microsoft renamed it in 2023. Entra ID Free is included with Microsoft cloud subscriptions such as Azure and Microsoft 365.
Where they differ
Compared on vendor documentation, pricing pages and Okta's annual report for the fiscal year ended January 31, 2026. Prices are list prices as of November 2026.
| Aspect | Okta | Microsoft Entra ID | What it means |
|---|---|---|---|
| Licensing and Microsoft 365 | Starter costs $6 per user per month and includes SSO, MFA and Universal Directory. Essentials costs $17 per user per month, and Core Essentials $14. Professional and Enterprise are priced by quote. All suites are billed annually, with a $1,500 annual contract minimum. | Entra ID P1 costs $7 per user per month and P2 costs $10, paid yearly. P1 is included in Microsoft 365 E3, F1, F3 and Business Premium. P2 is included in Microsoft 365 E5 and E7. | A Microsoft 365 E3 or E5 customer already holds Entra ID P1 or P2, so Okta is an added cost. |
| App integrations | The Okta Integration Network had over 7,000 integrations as of January 31, 2026. They cover cloud, mobile and web apps and infrastructure and security vendors, among them AWS, Google, Salesforce, SAP, ServiceNow and Workday. | The Entra application gallery contains thousands of SaaS apps preintegrated with Entra ID. The gallery is used to deploy and configure single sign-on and automated user provisioning. | Both catalogs are large; check each against your own app list, including whether provisioning is covered. |
| Active Directory and on-premises apps | Okta connects to an existing Active Directory through the Okta AD agent and imports its users and groups. The Okta LDAP Agent synchronizes user data with LDAP directories. Access Gateway extends Okta sign-in to on-premises apps without changes to their source code. It is an add-on below the Enterprise suite, which includes it. | Cloud Sync synchronizes users, groups and contacts between Active Directory and Entra ID through the Microsoft Entra provisioning agent. Application proxy publishes on-premises web apps through a connector that makes only outbound connections. It requires P1 or P2. Entra Private Access uses the same connector. | Both keep Active Directory in place; Entra includes on-premises app publishing with P1, and Okta charges for it below Enterprise. |
| HR-driven provisioning | Okta imports workers from Workday in full, incremental and Real Time Sync imports. Incremental imports can run as often as once an hour. A Workday business process triggers Real Time Sync for urgent changes such as a termination. Okta can make Workday the source of truth, with Active Directory as a downstream target. Lifecycle Management is part of Essentials. | Entra ID provisions users from Workday or SAP SuccessFactors into Active Directory or Entra ID. Each user sourced from the HR app needs a P1 or higher license. Lifecycle Workflows automate joiner, mover and leaver tasks. They require Entra ID Governance or the Entra Suite. | Both take workers from the HR system; Okta documents a real-time trigger from Workday, and Entra charges extra for lifecycle workflows. |
| Access policy | A global session policy sets the sign-in context. App sign-in policies then enforce authentication for each app. Device assurance policies check items such as OS version or a security patch inside app sign-in rules. Adaptive MFA is included from Essentials up. | Conditional Access policies are if-then rules evaluated after first-factor authentication. Signals include user or group, IP location, device platform or state, the app and risk from Entra ID Protection. A rule can require MFA, a compliant device or a hybrid-joined device. Conditional Access needs P1. Risk-based policies need P2. | Both apply device and context rules per app; on Entra, risk-based rules need P2. |
| Governance and privileged access | Essentials includes Privileged Access and Access Governance. Privileged Access is licensed in Resource Units, and the unit in Essentials covers 2 Privileged Access users. The Identity Governance add-on combines Access Governance, Lifecycle Management and Workflows. Professional adds Identity Security Posture Management and Identity Threat Protection. | P2 includes Privileged Identity Management, basic entitlement management and basic access reviews. Entra ID Governance costs $7 per user per month, paid yearly. The Entra Suite costs $12 per user per month, paid yearly, and requires P1. It includes ID Governance, ID Protection, Private Access, Internet Access and Verified ID premium features. | Microsoft 365 E5 already covers privileged role activation and basic reviews; Okta puts access governance in its Essentials suite. |
Can Okta and Entra ID run side by side?
Yes. Okta can sign users in to Office 365 by WS-Federation, with no separate Office 365 password. Okta can also serve as an external authentication method in Entra ID, providing the second factor for Microsoft resources. Okta also documents provisioning and deprovisioning of Office 365 users.
Common situations
A Microsoft 365 E5 customer that needs privileged role activation and access reviews
Entra ID. P2 comes with E5 and includes Privileged Identity Management and basic access reviews.
Workday terminations must cut access the same day
Okta documents Real Time Sync from a Workday business process. Entra ID also provisions from Workday; ask Microsoft how quickly a termination reaches Entra ID.
Legacy on-premises web apps need single sign-on
Entra ID includes application proxy with P1. Okta sells Access Gateway as an add-on, and includes it in the Enterprise suite.
Sign-in for customers of a consumer app
Either. Okta Customer Identity starts with a $3,000 per month Enterprise base platform, billed annually, with add-ons priced on usage such as monthly active users. Entra External ID keeps customer accounts in an external tenant, separate from employees. It is pay-as-you-go and needs an Azure subscription.
Questions buyers ask
Is Entra ID included in Microsoft 365?
Microsoft 365 E3 includes Entra ID P1, and Microsoft 365 E5 includes Entra ID P2.
Is Azure AD the same as Entra ID?
Yes. Microsoft renamed Azure Active Directory to Microsoft Entra ID in 2023.
How much does Okta cost?
As of November 2026, Starter is $6 and Essentials $17 per user per month, billed annually. Professional and Enterprise are quoted.
Sources
- Okta Form 10-K, fiscal year ended January 31, 2026
- Okta plans and pricing
- Okta Active Directory integration
- Okta: Add provisioned users
- Okta Workday integration
- Okta policies and rules
- Okta device assurance
- Okta: Configure single sign-on for Office 365
- Okta: Configure Okta as an external authentication method for Microsoft Entra ID
- Okta: Office 365 provisioning and deprovisioning
- Microsoft Entra plans and pricing
- Microsoft Entra licensing
- Microsoft Entra application gallery
- Microsoft Entra Cloud Sync
- Microsoft Entra application proxy
- Plan cloud HR application to Microsoft Entra user provisioning
- Microsoft Entra Lifecycle Workflows
- Microsoft Entra Conditional Access
- Microsoft Entra External ID
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