Transitioning from Azure AD B2C to Microsoft Entra External ID

Microsoft’s identity platform is evolving, and Azure AD B2C is making way for Microsoft Entra External ID (also known as External Identities). This next-generation customer identity and access management (CIAM) solution promises a more unified and powerful approach for managing external users.

What is Microsoft Entra External ID?

Microsoft Entra External ID is Microsoft’s new CIAM platform for managing external identities – customers, partners, citizens, or any users outside your organisation. It represents the next evolutionary step in providing secure, engaging experiences across all these external user types within a single integrated platform. In other words, it unifies what Azure AD B2C did for customer logins with the partner/guest scenarios of Azure AD B2B, all under the Entra identity product family.

It’s important to note that Entra External ID is not just a rebranding of Azure AD B2C, but a new platform built on its foundation. Microsoft describes Entra External ID as a “next-generation CIAM solution” built on Azure AD B2C, offering additional features and capabilities on top of the B2C core. These new capabilities include a simplified administration interface, an improved developer experience, and enhanced security features like risk-based authentication and adaptive access policies.

In essence, Microsoft Entra External ID expands the scope of Azure AD B2C:

• It combines customer identity (B2C) and external partner identity (B2B) into one platform.
• It modernises the user and admin experience, removing the need for XML-based custom policies.
• It integrates more deeply with the broader Microsoft ecosystem.

For organisations that have been using Azure AD B2C, Entra External ID offers a more polished and integrated approach. For a detailed comparison of the two platforms, this side-by-side feature comparison by Stephan van Rooij offers an in depth comparison.

Implications for Existing Azure AD B2C Users

 If your organisation is already invested in Azure AD B2C, you’re likely wondering how this change affects you. The good news is that nothing changes immediately – your Azure AD B2C tenant and applications will continue to run as they always have, with Microsoft committing to full support for B2C until at least May 2030. Here are the key implications and considerations:

• Long-Term Support but No New Features: Microsoft has pledged to support Azure AD B2C for ~5+ more years, but it is now in maintenance mode with no new features planned. All innovation in customer identity is happening on Entra External ID.
• Purchase/Signup Changes: From 1 May 2025, Azure AD B2C will no longer be available for new customers or new license purchases. Existing customers can continue using their B2C tenants but should start planning for the transition.
• Strategic Direction – Plan for Transition: Microsoft Entra External ID is the future. Organisations should begin formulating a migration plan, particularly for new customer-facing applications.
• Custom Policies: While External ID does not support the XML-based custom policies used in B2C, Microsoft plans to provide tools and guidance to help organisations transition their custom user journeys to the new platform.
• Licensing and Cost: Pricing remains consumption-based (monthly active users), similar to Azure AD B2C. External ID’s pricing is aligned more with the B2C P2 tier, reflecting its expanded capabilities.

High-Level Migration Overview (and How We Can Help)

 Migrating from Azure AD B2C to Entra External ID requires planning, testing, and execution. A high-level roadmap includes:

• Assessment and Planning – Review your current Azure AD B2C setup, including applications, policies, user data, and identity providers.
• Setup External ID Tenant – Configure the new External ID tenant and establish basic settings and branding.
• Pilot and Parity Testing – Deploy test applications and replicate user flows to validate platform parity.
• Data Migration – Migrate user accounts using bulk import or just-in-time provisioning as users log in.
• Application Cutover – Update app configurations to point to Entra External ID and test authentication flows.
• Decommission B2C – After full migration, retire the legacy B2C tenant.

Our team is here to help you through each step:

• Provide strategic planning and architecture.
• Set up and configure your External ID tenant.
• Recreate complex user journeys using the new capabilities.
• Handle user migration securely.
• Ensure a seamless application switchover.
• Train your team on the new platform.

Embrace the Future of Identity confidently 

Microsoft Entra External ID offers improved security, better management, and a unified approach to external identity. While Azure AD B2C remains supported, it’s clear that Entra External ID is the way forward.

We’re here to help you navigate this change with confidence. Whether you're exploring your options or ready to start your migration journey, our experienced team can guide you every step of the way.

Get in touch with us today to start planning your move to Microsoft Entra External ID.