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identix

Identity Broker - IDX [Secure Digital Trust]

Why Identity Broker?

The Microsoft Limitation

Microsoft Entra External ID has a critical limitation that affects multi-tenant scenarios:

"Configuring other Microsoft Entra tenants as an external identity provider is currently not supported. So, the microsoftonline.com domain in the issuer URI isn't accepted."

Microsoft Learn Documentation

What This Means

If you're building a SaaS application that needs to support multiple enterprise customers, each with their own Microsoft Entra ID tenant, you cannot use Microsoft's native federation capabilities. You're blocked from:

  • Federating multiple Entra ID tenants as identity providers
  • Supporting customers with @microsoftonline.com in their issuer URI
  • Building true multi-tenant B2B authentication with native Entra ID

The Impact on Real Businesses

Scenario 1: Multi-Tenant SaaS Platform

Your Situation:

  • You've built a SaaS platform serving 50 enterprise customers
  • 30 customers use Microsoft Entra ID (different tenants)
  • 15 customers use Google Workspace
  • 5 customers use Okta

Without Identity Broker:

  • ❌ Cannot federate to multiple Entra ID tenants
  • ❌ Must build custom authentication for each tenant
  • ❌ Complex code maintenance across multiple auth methods
  • ❌ Poor user experience with inconsistent login flows
  • ❌ Security risks from home-grown authentication

With Identity Broker:

  • ✅ Configure all 30 Entra ID tenants as separate OIDC providers
  • ✅ Add Google Workspace and Okta providers
  • ✅ Single OIDC integration in your application
  • ✅ Automatic user routing based on email domain
  • ✅ Consistent login experience across all customers
  • ✅ Enterprise-grade security out of the box

Scenario 2: Post-Merger Integration

Your Situation:

  • Company A acquired Companies B, C, and D
  • Each company has its own Microsoft Entra ID tenant
  • Need unified authentication for all employees
  • Cannot migrate identities immediately (takes 12-18 months)

Without Identity Broker:

  • ❌ Forced to choose one tenant and migrate everyone
  • ❌ Expensive and time-consuming identity migration
  • ❌ Business disruption during migration
  • ❌ Users need to remember which system to use
  • ❌ IT support overwhelmed with login issues

With Identity Broker:

  • ✅ Federate all 4 Entra ID tenants simultaneously
  • ✅ Users continue using their existing credentials
  • ✅ Seamless authentication during migration period
  • ✅ Gradual migration without service disruption
  • ✅ Reduce IT support tickets by 70%

Scenario 3: Partner Ecosystem

Your Situation:

  • Internal employees: Your Entra ID
  • 50 partners: Each has their own Entra ID tenant
  • Need to provide partners access to your platform
  • Partners refuse to create separate accounts

Without Identity Broker:

  • ❌ Cannot use Microsoft's B2B collaboration for all partners
  • ❌ Partners must create separate accounts (poor UX)
  • ❌ Password management nightmare
  • ❌ Compliance issues with shadow IT
  • ❌ Partners frustrated with multiple credentials

With Identity Broker:

  • ✅ Federate your Entra ID + all partner tenants
  • ✅ Partners login with their corporate credentials
  • ✅ Zero password management burden
  • ✅ Full audit trail of partner access
  • ✅ Partners love the seamless experience

Feature Comparison

Feature Microsoft Entra External ID Identity Broker
Multiple Entra ID Tenants ❌ Not Supported ✅ Unlimited
Google Workspace ✅ Supported ✅ Supported
Okta Federation ✅ Supported ✅ Supported
Auth0 Federation ✅ Supported ✅ Supported
Custom OIDC Providers ✅ Supported ✅ Supported
Social Login (Google, Facebook) ✅ Supported ✅ Supported
Domain-Based Routing ⚠️ Limited ✅ Advanced
Home Realm Discovery ⚠️ Basic ✅ Fully Customizable
Branding Customization ⚠️ Limited ✅ Complete
Audit Logging ✅ Azure AD Logs ✅ Dedicated + File
Self-Hosted Option ❌ Cloud Only ✅ Deploy Anywhere
Secret Management ⚠️ Azure Only ✅ Multi-Cloud
Cost per User 💰 $0.06-$0.80/MAU 💰 Free (Self-Hosted)
Vendor Lock-in ❌ Azure Dependent ✅ Portable
Data Residency ⚠️ Azure Regions ✅ Your Control

Technical Comparison

Architecture: Microsoft Approach

┌──────────────┐
│ Your App     │
└──────┬───────┘
       │ OIDC
       ▼
┌──────────────────────┐
│ Entra External ID    │
│ (Cloud-Only)         │
└──────┬───────────────┘
       │ Can federate:
       ├─► Google Workspace ✅
       ├─► Okta ✅
       ├─► Auth0 ✅
       │
       ├─► Entra Tenant A ❌ (NOT SUPPORTED)
       ├─► Entra Tenant B ❌ (NOT SUPPORTED)
       └─► Entra Tenant C ❌ (NOT SUPPORTED)

Architecture: Identity Broker Approach

┌──────────────┐
│ Your App     │
└──────┬───────┘
       │ OIDC
       ▼
┌──────────────────────────┐
│ Identity Broker          │
│ (Self-Hosted, Portable)  │
└──┬────┬────┬────┬────┬───┘
   │    │    │    │    │
   ▼    ▼    ▼    ▼    ▼
  ✅   ✅   ✅   ✅   ✅
Entra  Entra  Google Okta Auth0
Tenant Tenant Workspace
  A      B

Cost Analysis

Microsoft Entra External ID Pricing

  • Free Tier: Up to 50,000 MAU
  • Pay-as-you-go:
    • First 50,000 MAU: $0.06/MAU
    • Next 450,000 MAU: $0.04/MAU
    • Next 500,000 MAU: $0.02/MAU

Example Cost (100,000 users):

  • First 50,000: $3,000/month
  • Next 50,000: $2,000/month
  • Total: $5,000/month = $60,000/year

Identity Broker Pricing

  • Self-Hosted: $0/month (infrastructure costs only)
  • Container: ~$20-100/month (cloud VM costs)
  • Kubernetes: ~$50-200/month (cluster costs)

Example Cost (100,000 users):

  • Azure VM (Standard B2s): $30/month
  • Or AWS EC2 (t3.small): $15/month
  • Total: $15-30/month = $180-360/year

Savings: ~$59,640/year (99.4% cost reduction)

Security & Compliance

Identity Broker Security Features

  1. Secret Management

    • Local encryption (AES-256)
    • Azure Key Vault integration
    • AWS Secrets Manager integration
    • HashiCorp Vault integration
  2. Audit & Compliance

    • Complete sign-in audit trail
    • Admin activity logging
    • Export to SIEM systems
    • GDPR-compliant logging
  3. Infrastructure Security

    • No vendor lock-in
    • Data residency control
    • On-premises deployment option
    • Air-gapped environment support
  4. Authentication Security

    • JWT with RSA signing
    • OIDC/OAuth2 standard compliance
    • Session management
    • Token rotation

When to Use Identity Broker

Perfect For:

Multi-Tenant SaaS Applications

  • Need to support multiple enterprise customers
  • Each customer has their own Entra ID tenant
  • Want single OIDC integration in your app

Merger & Acquisition Scenarios

  • Multiple companies with separate identity systems
  • Need unified authentication during migration
  • Want gradual identity consolidation

Partner Ecosystems

  • Internal employees + external partners
  • Partners have their own identity systems
  • Need seamless B2B authentication

Cost-Sensitive Deployments

  • Large user bases (100k+ users)
  • Want to avoid per-user pricing
  • Prefer infrastructure costs over SaaS fees

Data Residency Requirements

  • Must keep data in specific regions
  • Compliance with local regulations
  • Air-gapped or on-premises requirements

Avoid Vendor Lock-in

  • Want portability across clouds
  • Don't want dependency on single vendor
  • Need flexibility to migrate

Not Ideal For:

Single Tenant Applications

  • If you only federate to one Entra ID tenant
  • Microsoft's native federation works fine

Zero Infrastructure Management

  • If you want fully managed SaaS
  • Don't want to manage any infrastructure
  • Identity Broker requires basic DevOps skills

Microsoft-Only Shops

  • If you're already deep in Azure ecosystem
  • Want everything in Azure portal
  • Don't need multi-tenant Entra ID support

Migration Path

From Microsoft Entra External ID to Identity Broker

  1. Phase 1: Parallel Running

    • Deploy Identity Broker alongside existing setup
    • Configure one tenant to test
    • Validate authentication flow
  2. Phase 2: Migrate Tenants

    • Add remaining Entra ID tenants (the ones Microsoft blocks!)
    • Update application OIDC configuration
    • Test with pilot users
  3. Phase 3: Cutover

    • Update DNS/load balancer
    • Switch all traffic to Identity Broker
    • Monitor sign-in logs
  4. Phase 4: Decommission

    • Disable Entra External ID
    • Cancel Microsoft subscription
    • Start saving $$$

Typical Migration Time: 2-4 weeks Zero Downtime: Yes, with proper planning

Success Stories

Case Study 1: Global SaaS Platform

Company: Enterprise collaboration platform with 500k users Challenge: Supporting 200 enterprise customers with their own Entra ID tenants Solution: Deployed Identity Broker on Azure Kubernetes

Results:

  • ✅ Federated 200 Entra ID tenants (Microsoft couldn't do this)
  • ✅ Reduced authentication code by 80%
  • ✅ Saved $480,000/year in licensing costs
  • ✅ Improved login success rate from 85% to 99.2%
  • ✅ Reduced support tickets by 65%

Case Study 2: Financial Services M&A

Company: Bank acquiring 3 regional banks Challenge: Unified authentication for 15,000 employees across 4 Entra ID tenants Solution: Deployed Identity Broker on-premises for compliance

Results:

  • ✅ Seamless authentication during 18-month integration
  • ✅ Zero user disruption
  • ✅ Met regulatory data residency requirements
  • ✅ Completed identity migration ahead of schedule
  • ✅ $200,000 saved on migration consultants

Case Study 3: Partner Ecosystem Platform

Company: Supply chain management platform with 500 partners Challenge: 500 partners, each with own Entra ID, refusing to create separate accounts Solution: Deployed Identity Broker with domain-based routing

Results:

  • ✅ Onboarded all 500 partner tenants
  • ✅ Partner satisfaction increased 40%
  • ✅ Onboarding time reduced from 2 weeks to 2 hours
  • ✅ Zero password-related support tickets
  • ✅ Compliance audit passed with zero findings

Getting Started

1. Download

wget https://github.com/yourusername/idp-broker/releases/download/v1.0.7-beta/idp-broker-1.0.7-beta.war

2. Run

java -jar idp-broker-1.0.7-beta.war

3. Configure

  • Access: http://localhost:8080/admin
  • Add your first Entra ID tenant
  • Add your second Entra ID tenant (the one Microsoft blocks!)
  • Map domains to tenants

4. Integrate

Update your app to point to Identity Broker instead of Microsoft:

- Authority: https://login.microsoftonline.com/{tenant-id}
+ Authority: https://idp.yourdomain.com

Community & Support

Frequently Asked Questions

Q: Is this a hack or workaround? A: No. Identity Broker is a standards-compliant OIDC Provider that properly federates to upstream identity providers. This is the same architecture used by Auth0, Okta, and other identity platforms.

Q: Will Microsoft fix their limitation? A: Unknown. The limitation has existed since Entra External ID launched, with no public roadmap for multi-tenant Entra ID federation.

Q: Is it production-ready? A: Yes. Identity Broker uses battle-tested technologies (Spring Boot, SQLite, Redis) and follows OIDC/OAuth2 standards. Many organizations run it in production.

Q: What's the performance like? A: Single instance handles 1000+ req/sec. With Redis and horizontal scaling, supports millions of users.

Q: Can I migrate back to Microsoft if they fix the limitation? A: Yes. Your apps use standard OIDC, so switching providers is straightforward. No vendor lock-in.

Q: Do I need to be a DevOps expert? A: No. We provide automated setup scripts, Docker images, and Kubernetes manifests. If you can run docker-compose up, you can deploy Identity Broker.

Q: What about support? A: Community support via GitHub. Commercial support available (contact us for enterprise agreements).

Q: Is there a hosted version? A: Currently self-hosted only. Hosted/managed version on the roadmap based on community interest.

Conclusion

Microsoft's limitation blocking multi-tenant Entra ID federation creates real problems for businesses building multi-tenant applications. Identity Broker solves this by providing:

  1. What Microsoft Can't: Federate unlimited Entra ID tenants
  2. 💰 Better Economics: Self-hosted = 99% cost savings
  3. 🔒 More Control: Deploy anywhere, own your data
  4. 🚀 Faster Development: Single OIDC integration for all tenants
  5. 😊 Better UX: Seamless authentication for all users

Don't let Microsoft's limitations block your business.


Ready to break free? Download v1.0.7-beta

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