Why enterprises are replacing guest access with policy-based, in-platform collaboration.
2025 Update: Guest Accounts Are Out. Dynamic Identity Is In.
In 2025, enterprises are accelerating the shift from static guest accounts to policy-driven external identities and passwordless access models.
Key trends shaping this change:
➥ Passwordless Authentication: Gartner forecasts that by 2027, 90% of MFA transactions will rely on FIDO passkeys, making passwords obsolete.
➥ Microsoft Entra Innovations: Entra Verified ID is now generally available, enabling secure, verifiable credentials for external users without creating permanent guest profiles.
➥ Zero Trust Everywhere: 81% of organizations have adopted Zero Trust frameworks, prioritizing identity verification and continuous governance for external collaboration.
Modern alternatives include:
➥ Passwordless sign-in (FIDO2 passkeys, biometrics)
➥ Conditional Access policies for granular control
➥ Verified ID for secure external identity management
➥ Link-based collaboration tied to sensitivity labels and DLP policies
This evolution reduces risk, simplifies compliance, and supports frictionless collaboration—without the identity sprawl of traditional guest accounts.
The end of the guest account era
For years, organizations have relied on guest accounts to let partners, vendors, or contractors access internal systems. But what started as a convenient fix has become an administrative and compliance nightmare. Each guest account is another identity to track, secure, and offboard. Over time, they accumulate like digital debris—posing serious risks:
✕ Forgotten accounts with lingering access
✕ Duplicated users across tenants
✕ Orphaned identities after projects end
✕ Compliance gaps in access reviews
In short: the more guest accounts you have, the less control you keep.
Why guest accounts no longer work
Traditional guest management tools struggle with three realities of modern collaboration:
⓵ Scale – Hundreds of projects and thousands of partners make manual provisioning unsustainable.
⓶ Compliance – Regulations demand precise visibility into who accessed what and when.
⓷ Governance – Security teams can’t apply consistent policies when guests live outside the corporate directory.
Enterprises are shifting from identity sprawl to governance-driven collaboration—where external users can collaborate securely without creating accounts at all.
The modern replacement: secure link-based collaboration
Instead of managing thousands of external identities, organizations are adopting link-based, policy-driven access within Microsoft 365. eSHARE leads this shift by replacing guest accounts with secure collaboration links that inherit your organization’s governance rules.
How it works:
➥ External users receive a secure link tied to document sensitivity and sharing policy.
➥ Access is enforced by domain rules, expiry dates, and watermarks.
➥ Permissions are granular (view, edit, comment, or request access).
➥ Access can be revoked or audited instantly—no lingering accounts.
This model delivers the same collaboration flexibility—without the identity chaos.
Key benefits of replacing guest accounts
♖ Reduced risk: No forgotten or stale accounts.
♖ Full auditability: Every external interaction is logged.
♖ Faster collaboration: Partners access files instantly—no onboarding delay.
♖ Consistent governance: Sensitivity labels and DLP follow every share.
♖ Cost efficiency: No license consumption for short-term or one-time users.
Building a zero-trust collaboration model
Modern enterprises operate on the principle of Zero Trust—never assume, always verify. Replacing guest accounts with eSHARE’s policy-based access reinforces that model: verification happens per file, per session, per policy. It’s not about restricting access—it’s about governing it intelligently.
eSHARE turns Microsoft 365 into a zero-trust collaboration hub—no extra accounts, no new systems, no lost control.
