Organizations rarely work alone. Suppliers, contractors, auditors and partners need access to some of your apps and files, and many businesses also run apps used by the public. Creating and managing ordinary employee accounts for all of these people would be insecure and exhausting. Microsoft Entra External ID is the name for the set of capabilities that let people outside your organization use your apps with identities they already have. The two scenarios the exam cares about are collaborating with partners (business-to-business, B2B) and serving customers.
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