Differences between B2B Direct Connect and B2B Collaboration in Microsoft Entra

Microsoft Entra offers two ways to collaborate with external users: B2B Direct Connect and B2B Collaboration. Both features allow organizations to share resources with external users while maintaining control over access and security. However, they differ in functionality, access, and integration. Here is a comparison between B2B Direct Connect and B2B Collaboration:

Feature	B2B Direct Connect	B2B Collaboration
Definition	Mutual trust relationship between two Microsoft Entra organizations	Invite external users to access resources using their own credentials
Functionality	Seamless collaboration using origin credentials and shared channels in Teams	External users receive an invitation and access resources after authentication
Applications	Shared channels in Microsoft Teams	Wide range of applications and services within the Microsoft ecosystem
Access	Single sign-on (SSO) with origin credentials	Authentication each time resources are accessed, unless direct federation is set up
Integration	Deep and continuous integration between two organizations	Flexible way to invite and manage external users

I hope this helps!