An important distinction between virtual directory and metadirectory is that virtual directory loosely couple identity data and applications.

A meta directory provides a consolidated view of user identity by adding a layer of infrastructure that sits above native repositories, drawing user data from them and storing it in a new consolidated directory that faces an enterprise application. While this tight coupling is a good choice for situations in which data is not updated frequently, it is often insufficient to use with more agile applications such as portals and CRM systems, because synchronization delays could cause users to work with data that was minutes or even hours out of date.

Instead of creating new identity repositories, virtual directory handle identity queries on a case-by-case basis, drawing the required, authorized data (and only the required data) in real time from its native repositories around a network and presenting it to an enterprise application as needed. When the query is complete the virtual directory disappears; once again, the data exists only in its native repositories, under the control of the original owner.