Identity-as-a-service demand rises with cloud growth
Mon 10 Apr 2017
Demand for new identity and access management services are increasing as a result of the growth in cloud adoption worldwide, according to new research by consulting firm Frost & Sullivan.
Complexities that have been introduced by enterprises in managing cloud adoption, including the need for Platform-as-a-Service and Infrastructure-as-a-Service are creating pressure for companies to provide an efficient and effective measure for the creation and management of user rights to data access. As a result, more companies are turning to Identity-as-a-Service (IDaaS) to meet these needs.
Identity-as-a-Service (IDaaS), usually a third-party authentication infrastructure, typically includes functions such as identity authentication and governance, single-sign-on (SSO) for the cloud, and authorization enforcement.
Advanced IDaaS services include cross-platform visualization that addresses the need for user access on mobile devices. Enterprises have also shown a growing interest in advanced analytics and portable biometric technology as part of an overall Identity and Access Management program.
The Identity and Access Management market reached $8.09 billion USD in 2016, and is expected to grow to over $14 billion by 2021. The largest growth is expected in Tier 2 companies, with annual revenues between $100 million and $1 billion USD. The largest market regions are the U.S., followed by Asia Pacific, then Europe and the rest of the world.
IDaaS services also provide advanced analytics, allowing network administrators to review intelligence reports, to monitor which employees accessed certain reports or data, and when.
Frost & Sullivan analyst Swapnadeep Nayak said, “The shifting of enterprise solutions to the cloud has created a complex architecture that requires more advanced IAM solutions than the ones currently offered by traditional identity management vendors.”
“The emergence of IDaaS has proven beneficial to enterprises, as it will assist with regulatory compliance, reduce the expenses involved in extending on-premise solutions to the cloud, and support the same features as enterprises’ legacy systems.”
Identity and access management services present enterprises with solutions to business issues, rather than technology issues. Company concerns often include service accuracy and cost efficiency, both of which can often be addressed with the purchase of IDaaS services.
Security needs are another factor driving the demand for identity management services. A report by Forrester found that 80% of security breaches involved the use of privileged credentials, and that companies that adopted an advanced identity management practice were less likely to experience a breach.