External identities: B2B collaboration, guest invitations and redemption, external collaboration settings

Microsoft Entra External ID for business-to-business (B2B) collaboration lets people from partner organizations use your apps and data with their own credentials. Instead of creating and managing a password for a contractor, you invite them; they authenticate with their home identity, and your tenant gets a user object that represents them. By default this object has userType Guest, which gives it more limited directory permissions than a member.