# Digital Identity is Broken: How Entra External ID Fixes the Trust Gap

Page: https://stenobird.com/podcast/m365-fm-modern-work-security-and-productivity-with-microsoft-365-7311214/digital-identity-is-broken-how-entra-external-id-fixes-the-trust-gap
Text version: https://stenobird.com/podcast/m365-fm-modern-work-security-and-productivity-with-microsoft-365-7311214/digital-identity-is-broken-how-entra-external-id-fixes-the-trust-gap.md
Podcast: [M365.FM - Modern work, security, and productivity with Microsoft 365](https://stenobird.com/podcast/m365-fm-modern-work-security-and-productivity-with-microsoft-365-7311214)
Published: 2026-05-06T14:00:02+00:00
Episode link: https://www.spreaker.com/episode/digital-identity-is-broken-how-entra-external-id-fixes-the-trust-gap--71886315
Audio file: https://dts.podtrac.com/redirect.mp3/api.spreaker.com/download/episode/71886315/digital_identity_is_broken_how_entra_external_id_fixes_the_trust_gap.mp3
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JSON: https://stenobird.com/v1/public/podcasts/m365-fm-modern-work-security-and-productivity-with-microsoft-365-7311214/episodes/digital-identity-is-broken-how-entra-external-id-fixes-the-trust-gap
Duration seconds: 1317

## Resource

Identity used to be simple. Employees logged into corporate systems from managed devices inside a controlled network perimeter. Security teams built walls, directories stored accounts, and trust lived inside one organization. That world no longer exists. Today, customers move across apps and devices constantly. Partners collaborate across tenants. Contractors join and leave projects every week. AI agents and automated workflows request access without ever touching the traditional sign-in path older identity systems were designed for. Yet most identity architectures still behave like everything happens inside a border. That mismatch creates one of the biggest hidden operational problems in modern business: the trust gap. In this episode of the M365 FM Podcast, Mirko Peters breaks down why identity is no longer just an authentication problem. It is now a business growth problem, a customer experience problem, a governance problem, and increasingly, a digital trust problem. THE DEATH OF THE PERIMETER Most identity systems still rely on rebuilding trust from scratch inside every application, every onboarding flow, and every partner portal. Every time a customer registers again, every time a contractor creates another account, and every time a partner has to manually prove the same information twice, organizations create friction, duplicate data, and larger attack surfaces. The costs are massive. Research continues to show that complicated registration processes directly reduce conversion rates. Password problems still overwhelm support teams. Centralized identity silos create larger breach targets while slowing users down at the exact moment businesses want faster onboarding and smoother digital experiences. This episode explores why identity can no longer be treated as a…

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