Entra ID vs. Okta Compared for Enterprise Identity Strategy

If your organization already uses Microsoft 365, you may already be paying for identity and access management capabilities that overlap with what you get through Okta.

We’ve seen this come up in discussions with organizations looking to optimize their Microsoft investments. Features such as multifactor authentication, single sign-on and access policies may already be available through their existing Microsoft licenses. Yet moving away from Okta isn’t necessarily straightforward, especially when business applications and authentication workflows depend on it.

So, how do you decide whether to consolidate identity management under Microsoft Entra ID or continue using Okta?

In this article, we compare Entra ID and Okta across their security capabilities, integrations and licensing requirements. We’ll also cover when migrating makes sense and what to consider before deciding.

Entra ID vs. Okta: What Are the Main Differences?

Microsoft Entra ID and Okta offer many of the same core identity management capabilities, including single sign-on (SSO), multifactor authentication (MFA) and access policies.

The main differences become clearer when you look at how each platform integrates with your existing applications, devices and security tools.

For organizations already invested in Microsoft 365, Entra ID offers an advantage through its integration with Microsoft’s wider security ecosystem.

Okta, on the other hand, can be a strong fit for organizations managing applications across multiple vendors. Its independent identity platform allows IT teams to centralize authentication without making Microsoft the primary identity provider for every application.

Neither advantage is exclusive. Entra ID supports third-party applications, while Okta integrates with Microsoft services. The more important consideration is how much additional configuration, licensing and ongoing administration each option requires in your environment.

For Microsoft-first organizations, the practical question is how much of what Okta provides you’re already paying for in Microsoft 365.

Where Does Entra ID Have an Advantage Over Okta?

For organizations already using Microsoft 365, Entra ID offers tighter integration with the tools they rely on to manage identities, devices and security policies. This can reduce the need to maintain separate configurations across multiple platforms.

Take device-based access controls, for example. An organization managing its endpoints through Microsoft Intune can use Entra Conditional Access to restrict access to corporate applications based on device compliance. If a device no longer meets the organization’s security requirements, Entra ID can block access to protected resources until the issue is resolved.

Okta supports device-aware access policies too, but using Intune compliance signals may require additional integration and configuration. Entra ID can use those signals natively, making it easier to enforce access requirements within an existing Microsoft environment.

The licensing implications are equally important.

Organizations using Microsoft 365 E3 or Microsoft 365 Business Premium already have access to Entra ID P1 capabilities, including Conditional Access. Microsoft 365 E5 includes Entra ID P2, which adds capabilities such as risk-based identity protection. These differences matter when comparing Microsoft 365 E3 and E5.

Yet some organizations continue paying for third-party identity services without fully using the Microsoft capabilities included in their subscriptions. Where Okta and Entra ID overlap, consolidating those services could reduce licensing costs and simplify administration.

The savings depend on what Okta currently handles. If the organization relies on Okta for application provisioning, custom integrations or identity lifecycle workflows, those dependencies need to be assessed before making a switch.

Entra ID is particularly attractive to organizations with an established Microsoft environment and an opportunity to optimize their Microsoft licensing costs. For businesses with a more diverse technology stack, however, Okta may still be the more practical option.

When Is Okta the Better Choice?

Okta is a strong choice for organizations managing applications across multiple technology providers. For instance, a business using Microsoft 365 alongside AWS, Google Workspace and other third-party applications may prefer an independent identity platform to manage authentication and access. The Okta Integration Network also offers thousands of prebuilt integrations, which can shorten setup for applications outside the Microsoft ecosystem.

Entra ID also supports these environments, but replacing Okta becomes less attractive when existing integrations are working well. This is especially true for organizations that rely on Okta to automate user provisioning and access management.

Consider employee onboarding and offboarding. If Okta already provisions application access when employees join and revokes it when they leave, migrating to Entra ID would require IT to review those integrations and verify the same workflows still function.

For organizations with extensive integrations, the migration effort may outweigh the potential licensing savings.

Should You Replace Okta With Entra ID?

Replacing Okta with Entra ID makes sense when an organization can reduce overlapping licensing costs without compromising its existing identity and access management capabilities. However, weigh the potential savings against the effort required to migrate applications, authentication policies and user accounts.

Start by identifying which applications depend on Okta for authentication and provisioning. Some may support direct integration with Entra ID, while others may require changes to federation settings, provisioning workflows or custom configurations. These dependencies will determine the scope of work and which applications need closer attention during migration.

User authentication is another consideration. If your Microsoft 365 domain is federated with Okta, Okta handles every Microsoft 365 sign-in, so the migration includes converting that domain to managed authentication in Entra ID using password hash sync or pass-through authentication. Microsoft’s Staged Rollout feature lets you move pilot groups to cloud authentication before converting the whole domain. Employees who currently authenticate through Okta may need to register new MFA methods in Entra ID before the transition. Otherwise, they could lose access to business applications when the authentication provider changes.

The same assessment should cover service accounts and legacy applications that rely on existing authentication configurations. Once these dependencies are understood, IT can test the new setup with a pilot group, validate application access and establish a rollback procedure before making broader changes.

A phased migration helps limit disruption, and it also gives the organization an opportunity to confirm whether Entra ID can support the controls and workflows previously managed through Okta.

Entra ID vs. Okta: Which Identity Platform Makes Sense for Your Organization?

If your organization relies heavily on Microsoft 365, Azure and Intune, Entra ID is worth considering as your primary identity platform. Its native integrations can simplify access management, particularly when your existing Microsoft licenses already cover the security capabilities you need.

Okta may be the better option if you manage a diverse application environment and have established authentication and provisioning workflows that would be costly to replace. In that case, the benefits of maintaining a centralized, vendor-independent identity platform may outweigh the potential licensing savings.

You may also find that retaining both platforms makes sense, especially where certain applications still depend on Okta. However, this requires clear ownership of authentication policies and a plan to avoid unnecessary licensing and administrative overhead.

Assess Your Identity Environment Before Replacing Okta

Replacing Okta with Entra ID could reduce licensing costs and simplify identity management, but the benefits depend on your existing applications, authentication policies and provisioning workflows.

Before migrating, you need to establish which Okta capabilities Entra ID can replace, what needs reconfiguration and whether the savings justify the effort.

Speak with our Microsoft Entra consultants to assess your identity environment and determine whether consolidation makes sense for your organization.