Microsoft Entra ID B2B and B2C (Business-to-Business and Business-to-Consumer) are two distinct capabilities within Microsoft Entra ID (formerly Azure Active Directory or Azure AD) designed to enable secure collaboration and identity management across organizations and for external customers. Both help companies interact securely with external users, but they serve different purposes and use cases. Let’s dive into each one in detail.
Microsoft Entra ID B2B (Business-to-Business)
What is Entra ID B2B?
Microsoft Entra ID B2B is a feature that enables organizations to collaborate securely with external partners, vendors, or contractors. It allows external users (who are not part of your company) to access your internal applications and resources, like documents or SharePoint sites, without creating a separate user account within your organization.
Key Features of Entra ID B2B:
- Guest Access: Allows you to invite users from other organizations as “guest” users in your Entra ID.
- Seamless Collaboration: External users can use their own organizational credentials (such as Microsoft 365 or Google accounts) to access your resources.
- Conditional Access: You can apply security policies to manage guest user access based on location, device state, or other risk-based criteria.
- Identity Governance: Provides control over guest user access, such as time-based access expiration and access reviews.
- Single Sign-On (SSO): Allows external users to access multiple applications after a single login.
Usage Scenarios and Working Examples for Entra ID B2B
Example 1: Sharing a SharePoint Folder with a Partner Company
- Scenario: Your company is working with an external marketing agency that needs access to specific SharePoint files.
- How It Works:
- Invite the Partner: You send an invitation to the agency staff member via Entra ID B2B, adding them as a “guest” user.
- Access with Existing Credentials: The agency staff logs in using their existing company account credentials.
- Conditional Access: You enforce policies to restrict access to only compliant devices or specific locations.
- Revocation: When the partnership ends, you can easily remove their access by disabling or deleting the guest account.
Example 2: Providing Vendors Access to Microsoft Teams
- Scenario: You’re working with a vendor on a specific project, and they need access to project discussions, documents, and updates in Microsoft Teams.
- How It Works:
- Add as Guest in Teams: You add the vendor’s team members as guest users in the relevant Teams channel.
- Single Sign-On: Once logged in, they can access all resources within that Teams channel.
- Governance Policies: Set up access reviews to periodically verify if vendor accounts still need access to the Teams channel.
Example 3: Limited Portal Access for External Auditors
- Scenario: An external auditing firm needs temporary access to your company’s financial data portal for compliance checks.
- How It Works:
- Invite as Guest Users: You invite auditors as guest users and grant them read-only access to the financial data portal.
- Expiration Policy: Set an access expiration date for the auditors, ensuring their access is automatically removed once the audit period ends.
- Conditional Access: Configure Conditional Access to require MFA (Multi-Factor Authentication) whenever they access sensitive financial data.
Step-by-Step Guide to Setting Up Entra ID B2B
- Access Entra ID:
- Go to the Azure Portal and navigate to Azure Active Directory.
- Invite Guest Users:
- Under the Users section, select + New guest user.
- Choose Invite user and fill in the external user’s email address, name, and optional personal message.
- Assign Access:
- Go to Groups or Applications to assign permissions to guest users.
- Assign guest users to specific security groups or resources as needed.
- Set Conditional Access and Expiration Policies:
- Go to Conditional Access and create policies for guest access based on risk criteria, like location or device compliance.
- Use Identity Governance to set up expiration policies for guest access if temporary access is required.
Microsoft Entra ID B2C (Business-to-Consumer)
What is Entra ID B2C?
Microsoft Entra ID B2C is a customer identity and access management (CIAM) service that enables organizations to manage and secure user access to their applications for end-users outside of the organization, such as customers or clients. Entra ID B2C provides authentication and user management services for consumer-facing applications.
Key Features of Entra ID B2C:
- Customizable User Journeys: Tailor the entire registration, login, and profile management experience to match your brand and user experience needs.
- Multi-Identity Provider Support: Users can register and log in using multiple identity providers, including social accounts (Google, Facebook), local email accounts, or enterprise accounts.
- Multi-Factor Authentication (MFA): Add an additional layer of security with MFA.
- Self-Service Profile and Password Management: Allows users to update their profiles or reset passwords without needing admin assistance.
- User Segmentation and Custom Attributes: Enables the storage of custom attributes for personalized user experiences, like customer preferences or loyalty statuses.
- API Integration: Entra ID B2C allows applications to interact with user profiles and data securely.
Usage Scenarios and Working Examples for Entra ID B2C
Example 1: E-commerce Website Customer Authentication
- Scenario: An online retail store wants users to create accounts to access purchase history, wish lists, and personalized product recommendations.
- How It Works:
- B2C Sign-Up Process: Users sign up through Entra ID B2C, creating an account with their email or using social login.
- Self-Service Profile Management: Users can update their addresses, preferences, and view order history through a self-service portal.
- Customization: The retailer customizes the sign-up and profile management pages to match the store’s branding.
Example 2: SaaS Application with Multiple Login Options
- Scenario: A SaaS company provides a productivity tool with the option to log in using different accounts, such as Microsoft or Google, or create a new account.
- How It Works:
- Multiple Identity Providers: Entra ID B2C is configured to allow login using Microsoft accounts, Google accounts, or direct email sign-up.
- Access Control: After login, users access their personalized dashboards and settings within the SaaS application.
Example 3: Banking App with Enhanced Security
- Scenario: A bank wants customers to access their online banking app with robust security, including optional MFA for high-value transactions.
- How It Works:
- B2C Sign-In with MFA: Users sign in using Entra ID B2C, with the option to enable MFA for additional security.
- Policy Customization: The bank can apply policies to enforce MFA for specific activities like fund transfers or account updates.
- Password Management: Customers can reset their password using self-service if they forget it, without needing bank support.
Step-by-Step Guide to Setting Up Entra ID B2C
- Create an Entra ID B2C Tenant:
- In the Azure Portal, search for Azure Active Directory B2C and create a new B2C tenant if it’s your first time setting up.
- Define Identity Providers:
- Go to Identity Providers in the Entra ID B2C tenant.
- Configure social accounts (e.g., Google, Facebook) or custom accounts, and enable them for sign-in and sign-up processes.
- Create User Flows (User Journeys):
- Under User flows, choose to create a new user flow.
- Select the desired user journey, such as Sign-up or Sign-in, Profile Editing, or Password Reset.
- Configure the options, such as required attributes (e.g., email, phone number) and additional security like MFA.
- Customize User Experience:
- Customize the look and feel of the sign-up and sign-in pages by editing the page layout, branding, and adding logos to match your company’s theme.
- Application Registration:
- Register your application in the B2C tenant to allow it to use B2C for authentication.
- Under App registrations, create a new registration and set up redirect URIs for your app.
- Define Policies and Access Controls:
- Under Identity providers and Conditional Access, define access policies, such as enabling MFA or setting requirements for specific attributes.
Summary of Differences and Key Considerations
| Feature | Entra ID B2B | Entra ID B2C |
|---|---|---|
| Purpose | Collaborate with business partners/vendors | Manage customer access to consumer-facing apps |
| Users | External partners and vendors | Customers and clients |
| Authentication Options | Organizational |
Here’s an in-depth comparison of Microsoft Entra ID B2B and Microsoft Entra ID B2C, two capabilities within Microsoft Entra ID designed for managing and securing access for external users. Both serve distinct purposes based on the type of external users (business partners vs. customers) and the nature of access required. This comparison will cover each aspect in detail, including practical use cases to illustrate when to use each solution.
Comparison Overview: Entra ID B2B vs. Entra ID B2C
| Feature/Aspect | Entra ID B2B | Entra ID B2C |
|---|---|---|
| Purpose | Collaboration with business partners, vendors, or contractors | Managing customer or client access to public-facing applications |
| User Type | External organizational users (e.g., employees from other companies) | End-consumers or public users, often with no affiliation to any organization |
| Authentication Methods | External users authenticate with their own work credentials (e.g., Microsoft 365, Google, or email) | Supports multiple identity providers, including social accounts (Google, Facebook) and local email accounts |
| Single Sign-On (SSO) | Enables SSO for external users to access multiple shared applications within the hosting organization | SSO within the specific app or across consumer applications (if configured) |
| Security and Conditional Access | Leverages Conditional Access, MFA, and role-based access control (RBAC) for partner access management | Provides MFA, custom authentication flows, and attribute-based control for consumer applications |
| User Management | Allows organization to manage guest user lifecycle (invites, reviews, revocation) | Provides customer-facing user registration, self-service profile, and password management |
| Brand Customization | Limited customization of login interface, focusing on collaboration tools | Full customization of UI to match branding, tailored user journeys and custom flows |
| Compliance and Auditing | Robust auditing with access reviews, user and activity logs | Basic logging, can integrate with audit tools for customer insights and compliance |
| Licensing Requirements | Uses Azure AD licensing (P1 or P2 for advanced features like Conditional Access) | Requires separate Entra ID B2C licensing for consumer identity management |
| Use Cases | Vendor collaboration, external project access, partner portal access | Customer portals, public apps (e-commerce, banking, SaaS), consumer-focused web/mobile apps |
Detailed Comparison of Key Features and Examples
1. Purpose and User Types
- Entra ID B2B is primarily for business collaboration. It allows organizations to securely share resources and data with external business partners, vendors, contractors, or customers who may already have their own organizational accounts. The external user (guest) signs in with their existing credentials, allowing seamless access without creating a new identity. Example Use Case: A consulting firm collaborates with a company on multiple projects. Each consulting employee is added as a guest user with access to the relevant Teams channels and SharePoint resources. When the project ends, access for these users can be easily removed.
- Entra ID B2C is for public-facing applications aimed at end-consumers or customers, typically without any existing organizational account. These consumers can sign in using social media accounts (e.g., Google, Facebook) or create a local account with their email. It provides a streamlined, branded experience for end users. Example Use Case: A retail company’s e-commerce site uses Entra ID B2C to let customers create accounts with social logins or emails, allowing them to view order history, save wish lists, and track deliveries. Entra ID B2C manages customer identity, profile, and password recovery.
2. Authentication Methods and Identity Providers
- Entra ID B2B supports authentication via the external organization’s credentials, leveraging Microsoft 365, Google, or other work email providers. This means users can log in with credentials from their home organization, enabling a smoother collaboration without creating separate accounts. Example: A partner organization’s employees access a portal using their own Microsoft 365 credentials. The host organization sets up Conditional Access to require MFA if they log in from an unknown location.
- Entra ID B2C supports a variety of identity providers, including social media accounts (Google, Facebook, LinkedIn), enterprise accounts, and local (email-based) accounts. This flexibility allows consumers to choose a preferred login method, improving user experience for customer applications. Example: An online banking app allows users to log in with either a local account or their Google account. For security, customers can enable MFA for high-risk transactions.
3. User Experience and Brand Customization
- Entra ID B2B offers limited customization for the sign-in experience since it’s designed more for inter-organizational collaboration. The focus is on secure and seamless access rather than branding. While guest users can log in through a branded Microsoft sign-in portal, customizations are minimal. Example: A project management portal allows invited users to log in with their own credentials, focusing on quick access rather than a branded experience.
- Entra ID B2C provides full branding control of the login experience, including color schemes, logos, and custom HTML/CSS, allowing a brand-consistent experience for consumer applications. User flows (e.g., registration, login, profile update) are fully customizable. Example: A streaming service uses Entra ID B2C to offer a branded sign-up page matching its website theme, with options to register via social media or email, followed by a personalized dashboard upon login.
4. Security Features and Conditional Access
- Entra ID B2B offers enterprise-grade security features such as Conditional Access, MFA, and role-based access control (RBAC). This allows the host organization to enforce security policies based on factors like location, device compliance, and risk level. Example: An external consultant logs in to access confidential data. Conditional Access is set to require MFA if they are logging in from outside the company’s usual geographic location.
- Entra ID B2C provides MFA and custom authentication flows that are consumer-friendly and not as extensive as B2B’s security options. Entra ID B2C is focused on balancing ease of access with security, offering a streamlined approach with MFA for customer logins without complex Conditional Access policies. Example: A banking app requires MFA for logins from new devices, adding an extra layer of protection for customer accounts.
5. User Management, Lifecycle, and Compliance
- Entra ID B2B allows administrators to manage the entire lifecycle of guest users, from inviting, reviewing, and renewing access to revoking it. Administrators can set up periodic access reviews and track user activity in audit logs, maintaining compliance standards. Example: A government contractor has access to sensitive data within a government portal. Access reviews are set to occur every three months, allowing admins to verify if the user still needs access.
- Entra ID B2C provides self-service profile management and password reset functionality, allowing consumers to handle their own profiles and passwords without administrator involvement. Entra ID B2C also supports custom attributes, making it possible to store additional customer data (e.g., subscription preferences) for personalization. Example: A video streaming service allows users to update their profiles with subscription preferences and change passwords without support team assistance.
6. Licensing and Costs
- Entra ID B2B generally falls under Azure AD licensing (P1 or P2), with advanced features like Conditional Access and access reviews requiring premium plans. This pricing model is suited to enterprise collaboration and scales with the complexity of security needs.
- Entra ID B2C is licensed separately, designed for consumer identity management. Pricing is based on monthly active users and the number of authentications, making it suitable for customer-facing apps where user volume fluctuates.
When to Use Entra ID B2B vs. Entra ID B2C
| Situation | Use Entra ID B2B | Use Entra ID B2C |
|---|---|---|
| External partner collaboration | When you need to collaborate with external vendors, partners, or contractors securely | Not suitable for partner collaboration; focused on consumer-facing applications |
| Customer login and registration | Not suited for customer-facing apps as it lacks customer-friendly features | Ideal for public apps where customers need to register and log in (e.g., e-commerce, customer portals) |
| Complex security policies | Use for applying Conditional Access and RBAC for security-sensitive external users | Limited Conditional Access; best for balancing security with ease of use for public-facing applications |
| Brand customization of login | Minimal customization, suitable for internal/external enterprise access | Provides full branding control and custom user journeys for seamless customer experiences |
| Multi-Identity Provider support | Allows external users to sign in with existing work credentials (Microsoft, Google, etc.) | Supports social media, local accounts, and various ID providers, offering a wide range of sign-in options |
| User self-service profile and password reset | Limited self-service; admin-driven guest management | Full self-service capabilities for profile management and password recovery |
| Compliance and access reviews | Ideal for compliance, offering access reviews and |
detailed audit logging | Basic audit logging; focuses on consumer identity management without extensive compliance features |
| Licensing based on usage patterns | Suitable for enterprise collaboration (premium Azure AD licenses for advanced features) | Licensing per monthly active user, suitable for public-facing applications with fluctuating user volumes |
- Use Entra ID B2B when you need secure collaboration with other businesses, vendors, or contractors who need access to internal applications or data. B2B offers strong security and management features tailored to inter-organizational access and is ideal for use cases requiring strict access controls, such as project portals or partner collaboration tools.
- Use Entra ID B2C for consumer-facing applications where end-users are the general public or customers with no organizational affiliation. B2C provides flexible login options, customizable branding, and self-service capabilities, making it suitable for customer portals, e-commerce sites, and public web/mobile applications.
