Hello Deepak Arora
While Azure Entra External ID (for customers) has some subscription-level tenant limits, the better long-term solution is to use a single Azure Entra External ID (B2C) tenant and implement per-client branding and segregation within that.
Rather than creating a tenant per client (which hits the 200-tenant limit), leverage a single Azure Entra ID tenant and manage clients within that tenant using custom policies, branding, and group/user management.
Azure Entra External ID (formerly Azure AD B2C) allows you to manage identities of external users (e.g., customers) within a single tenant, and it's designed for multi-organization support without requiring one tenant per customer.
Azure Entra External ID supports customized user flows and custom policies (Identity Experience Framework), including:
Custom UI per client: You can dynamically load branding (logos, colors) based on the domain or query string.
Separate user journeys: Custom policies allow defining different flows per client (e.g., signup, login, MFA).
Domain filtering: Based on email domain or another identifier, route users through the correct flow.
You do not need to create one Entra tenant per client. Instead, simulate multi-tenancy by:
-Storing client metadata in a database (branding settings, allowed domains, etc.).
-Using pre-authentication logic (e.g., in the web app or via B2C prebuilt/custom policies) to select branding and flow.
Working with Azure AD B2C Custom Policies
Azure AD B2C custom policy overview
Considerations for using Azure Active Directory B2C in a multitenant architecture
Enable custom domains in Azure Active Directory B2C
how-to-custom-oidc-federation-customers
Within a single B2C tenant, you can:
-Tag users with custom attributes (e.g., clientId) to group them by organization.
-Use Access Control in your app to enforce client boundaries (i.e., a user in Client A can’t access Client B’s data)
Use Conditional Access, MFA, identity protection, and verified domains per client to enforce secure access as needed.
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