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title description author manager ms.service ms.topic ms.date ms.author
Microsoft Entra External ID deployment guide for auditing and monitoring
Learn about audit logs, alerts, monitoring targets, and service degradation in Microsoft Entra External ID.
gargi-sinha
martinco
entra-external-id
concept-article
03/10/2025
gasinh

Microsoft Entra External ID deployment guide for auditing and monitoring

Auditing is actions taken to understand a system, its user activities, and related processes. Monitoring is an ongoing activity that informs you about what's occurring. Monitoring usually involves alerting and automation.

Auditing and logs

Microsoft Entra External ID stores sign-in and audit logs for 30 days. Export this information to an external storage or tool for retention and analysis.

Azure Monitor is configured as a bridge to export logs. See the following diagram of Microsoft Entra External ID log exports with Azure Monitor.

Diagram of log exports with Azure Monitor.

This configuration requires projecting an Azure resource group with the resources from the enterprise tenant to the Microsoft Entra External ID tenant. You can enable log exports using Azure Monitor.

Monitor and alert

Monitoring helps ensure the efficient operation of identity and associated systems. These actions include establishing monitoring infrastructure, defining monitoring procedures, setting up dashboards or alerts, and creating a response protocol to handle alerts. See the following list of what to monitor:

Availability - Sometimes referred to as a heartbeat or health endpoint. Availability indicates if the service is operational. You can set it up on the monitoring system and it can execute frequently for in-use components without significant overhead. For custom extension APIs, we suggest you implement health endpoint monitoring. If you're developing your API using .NET, use Health checks in ASP.NET Core to expose health endpoints. While monitoring availability is essential, it might indicate service failures only.

Functionality - Track functionality with synthetic transactions that mimic end-to-end user or system interactions involving dependencies: UI, API calls, logging. Many monitoring tools have features to automate multistep web experiences, like sign-up, profile edit, and MFA.

Performance - Track performance with synthetic transactions and server-side instrumentation to gather performance-related telemetry. In distributed systems like identity access management (IAM) systems with numerous dependencies, identify, and resolve performance issues. Deploy performance probes across customer locations and establish a baseline for identity experiences. Set up triggers and notifications to detect deviations from a baseline. A system that's available, but performs poorly, isn't beneficial.

Each experience for request for authentication and identity comes with a unique identifier that's a correlation ID for the session. When the identity system calls external custom extensions, this identifier is in the authentication context. Log the identifier in the custom extension to help you diagnose issues.

Note

Microsoft has a goal to enable client-side telemetry using analytics tools such as Google Analytics and Adobe Analytics.

Note

Monitor logs for exceptions and errors from the identity service, also monitor the dependent services such as web application firewalls (WAFs), APIs that directory call in custom extensions.

The following diagram illustrates monitoring and alerting setup.

Diagram of alerting and monitoring setup.

Service degradation and failure alerting setup

In a large system, certain levels of transaction fail. Incomplete identity experiences, sometimes called incomplete conversions, can be caused by events such as distracted users, telco failures, browser crashes, etc. On a large scale, addressing every failure is impractical. Set up a baseline for typical failure events. Also set up monitoring and alerting to detect deviations, like performance monitoring. Use the following job aid to record failure metrics.

Metric Baseline
Authentication failures
Sign-in failures
Sign-up failures
MFA failures by type: email one-time password (OTP), telephony OTP
Failures by browser type: Chrome, Edge, Firefox, Safari
Failures by mobile operating system: Android, iOS

Continuous system validation

Changes in environments are inevitable. An automated continuous validation environment helps catch issues from changes. You can use the same syntactic monitoring infrastructure to set up this validation automation.

Synthetic transactions should reference applications and APIs used for token acquisition, validation, and integration components such as API managers and service buses. We recommend you maintain versions of supported services, operating systems, and runtime environments in this setup. Each component continuously reports the test success or failure. This action ensures identity services availability and early detection of potential failures.

Monitor usage

Microsoft Entra External ID pricing consists of a core offer and premium add-ons.

Core offer billing is based on monthly active users (MAU), which is the count of unique external users who authenticate to your tenants in a calendar month. To determine the total MAUs, MAUs from all workforce and external tenants linked to a subscription are combined.

For more information on the billing model, see Microsoft Entra External ID pricing.

View incurred costs on the cost analysis area of the subscription/resource group linked to the Microsoft Entra External ID tenant. If the MAU count is below the free tier, the bill is $0. Usage data below the free tier appears in the cost analysis.

In the Microsoft Entra admin center, for the Microsoft External ID tenant, use the usage and insight dashboard to view utilization details, even when usage is below the free tire.

Learn how to list monthly activeUsers in Microsoft Graph.

See the graph resource types in dailyUserInsigntMetricsRoot resource type.

Note

Data returned by the APIs isn't real-time and might be subjected to scheduled processing.

The following table correlates metric, resource, and description.

Metric Graph reference Description
activeUsers activeUsersMetric
authentications authenticationsMetric
mfaCompletions mfaCompletionMetric
signUps userSignUpMetric
summary insightSummary
userCount userCountMetric

The following screenshot shows an example usage and insights dashboard.

Screenshot of the usage and insights section in the Microsoft Entra admin center.

Next steps

Use the following articles to help you get started with a Microsoft Entra External ID deployment: