Benchmark analysis

IAM Pricing Benchmarks

Enterprise IAM pricing benchmarks: what organizations actually pay for Okta Workforce Identity vs Microsoft Entra ID. Per-user cost comparison with.

Key points

IAM Pricing: The Bundling Problem

This article is part of the cybersecurity software pricing benchmarks series. Identity and access management pricing has become genuinely complex because the category's two dominant vendorsOkta and Microsoft, have fundamentally different commercial strategies. Okta sells IAM as a standalone product with transparent (though negotiable) per-user pricing. Microsoft bundles Entra ID into M365 and Azure, making the "true" per-user cost of IAM a function of how you allocate your Microsoft license costs.

Neither approach is inherently better for procurement, but they require different benchmark methodologies. For Okta, the question is simple: what is your per-user rate, and how does it compare to what similar organizations pay? For Microsoft, the question is: what is the incremental cost of Entra ID capabilities given your existing M365 commitment?

Okta Workforce Identity: Per-User Pricing Benchmarks

Okta's Workforce Identity Cloud is its enterprise product line for employee (and contractor) identity. The platform covers SSO, MFA, lifecycle management (provisioning/deprovisioning), PAM, identity governance, and related capabilities. Pricing is per-user per-month, with significant variation between tiers and based on which modules are included.

Okta SSO + MFA: Core Benchmark Data
User CountProductList Price / User / MonthBenchmark MedianBest-in-Class
500 to 2,499Workforce SSO + MFA$9 to $13$6.80$5.20
2,500 to 9,999Workforce SSO + MFA$8 to $12$6.20$4.80
10,000 to 24,999Workforce SSO + MFA$7 to $11$5.40$4.10
25,000 to 74,999Workforce SSO + MFA$6 to $10$4.60$3.40
75,000+Enterprise PlatformNegotiated$3.80$2.80
Okta Full Platform: With Lifecycle Management
User CountProduct BundleList Price / User / MonthBenchmark MedianBest-in-Class
5,000 to 19,999Workforce + Lifecycle Mgmt$14 to $18$9.40$7.10
20,000 to 49,999Workforce + Lifecycle + PAM$22 to $30$14.20$10.80
50,000+Full Platform BundleNegotiated$11.60$8.40

"Okta's biggest pricing lever is Microsoft. Every organization evaluating Okta renewal should first establish the true incremental cost of Entra ID P2 within their Microsoft EA. That number becomes the anchor for everything Okta will negotiate against."

Benchmark Your Okta Contract

See where your Okta per-user rate sits vs. real peer contracts. 24-hour turnaround, Confidential benchmark report.

Contact Us

Microsoft Entra ID: The "Included" Cost Reality

Microsoft Entra ID (formerly Azure Active Directory) is included in various M365 and Azure tiers:

The "included" framing is accurate, if you're already on M365 E3 or E5, you have Entra ID P1 or P2 at no incremental license cost. The question is what you paid for M365 E3 or E5, and how much of that cost is attributable to Entra ID.

The M365 E3 vs E5 Cost Allocation for Entra
M365 LicenseEntra ID Tier IncludedBenchmark Rate / User / MonthPremium Delta vs E3Allocated Entra Cost
M365 E3Entra ID P1$28 to $36/user/month~$3 to 5/user/month (P1)
M365 E5Entra ID P2$46 to $58/user/month+$14 to 22/user/month~$5 to 8/user/month (P2, allocated)
Entra ID P2 (standalone)Entra ID P2$6 to $9/user/month list$3.80 to 5.20 benchmark median

The standalone Entra ID P2 benchmark rate ($3.80 to $5.20 per user per month) is lower than Okta's benchmark rate for comparable SSO + MFA functionality ($4.80 to $6.20). But for most large enterprises, Entra ID P2 is accessed through M365 E5 rather than standalone, meaning the "cost" is the incremental premium of E5 over E3 allocated across all E5 features (Defender, Purview, Sentinel, Intune, Entra). This allocation analysis is the core of any honest Okta vs. Microsoft IAM cost comparison.

CyberArk PAM: Privileged Access Benchmark Data

CyberArk dominates the Privileged Access Management sub-category with its Core PAS (Privileged Access Security) platform and newer SaaS offering (Privilege Cloud). Pricing differs from general IAM, it's based on privileged account vaulting, session recording, and privileged session management capacity rather than total user count.

DeploymentMetricList Price RangeBenchmark MedianBest-in-Class
CyberArk Core PAS (on-prem)Per vault + per account tier$180K to $280K/yr (midsize)$124K$92K
CyberArk Privilege CloudPer privileged user/month$100 to $180/priv user/yr$68/priv user/yr$50/priv user/yr
CyberArk Secrets MgmtPer vault/year$36K to $72K/vault/yr$24K$18K

CyberArk's primary competitive threat in privileged access management is increasingly from BeyondTrust and HashiCorp Vault (for secrets management). Microsoft also has Entra PIM for privileged role management within the Azure/M365 ecosystem. For organizations where privileged access is primarily cloud-based (Azure, AWS, GCP), the Entra PIM + AWS IAM combination can replace standalone PAM at significantly lower cost. For organizations with significant on-premise infrastructure and complex PAM requirements, CyberArk maintains a genuine capability advantage that justifies its pricing premium relative to alternatives.

Okta vs. Entra: Negotiation Strategy

The mechanics of Okta negotiation have shifted significantly as Microsoft has become a more credible identity platform. Before 2022, Microsoft Entra ID (then Azure AD) was widely seen as weaker than Okta on SSO breadth and configuration flexibility. That gap has narrowed, and organizations that can credibly threaten an Okta-to-Entra migration now have substantially more negotiating leverage than they did two years ago.

How to Establish Real Microsoft Leverage Against Okta
Okta Module Expansion: The True-Up Trap

Okta's commercial model has the same module expansion problem seen with other major security vendors. Organizations that start with SSO + MFA progressively activate Lifecycle Management, Privileged Access, Identity Governance, and Management. Each module has its own per-user or per-integration pricing. By the time of the second renewal, the effective per-user cost has grown substantially, often without clear visibility into why.

Our benchmark data shows that organizations that conduct a module-level review before Okta renewal (rather than accepting the bundle renewal quote) consistently identify 15 to 25% in modules either not being used or duplicating functionality in other parts of the security stack. This review process is a core part of our renewal benchmarking methodology.

Okta vs. Entra Benchmark Summary

The IAM Benchmark Bottom Line

Identity is one of the few security categories where Microsoft has built a genuinely competitive alternative to the market leader, not just a checkbox product. For organizations already on M365, the Entra ID P2 option is worth an honest cost analysis before every Okta renewal. Our benchmark data shows the price gap between Okta at best-in-class rates and Entra P2 has narrowed to the point where the decision is often driven by non-price factors: integration breadth, Okta's deeper third-party app catalog, or organizational preference for best-of-breed vs. platform consolidation.

For any organization not running this analysis, they're almost certainly leaving money on the table, either in Okta discounts unlocked by credible Microsoft leverage, or in potential savings from a partial or full Entra migration. The benchmark data starts that conversation.

For the full cybersecurity pricing landscape, see our Cybersecurity Software Pricing Benchmarks pillar, and download our Cybersecurity Pricing Report for the complete vendor benchmark dataset.

Related reading

All Analysis

Pricing data and source text from the VendorBenchmark library. Co-sell reading is this site’s.