The cost of implementing an IAM solution is often frowned at, while organizations continue with struggle of managing identities, authorizing and authenticating users.
We at Avancer strongly believe that this year is going to be a game changer, we are likely to witness a mind-set change where decision makers will view expenses in IAM as investment. Return on investment is assessing the profitability of the investment, but in case of IAM it requires moving away from traditional understanding of calculating ROI. Look at the cost of compromising what is at stake if implementing Identity and Access technology is delayed in an organisation.
Since there is no ready IdM cost calculator, IT professionals want a handy calculator of cost. However this cost varies and depends on the sophistication of identity technology required. There are three key components to calculate ROI of Identity Solutions and to analyze if the cost of making an investment in Identity and Access Technology is worth it:
- Cost of losing time to technical inefficiencies.
As per Forrester, companies spend nearly twice as much on manual processes for security and attestation as automated ones. IAM is about achieving efficiency and setting up automated network processes. As user base in an organization increases, relying on manual processes is not all that logical. The cost of bringing additional resources to manage user base bring in manual complexity in the system. Identity and Access Management Technology formulates in a reliable process that bring together a range of features including Password Management, Single Sign On (SSO), Provisioning and Deprovisioning and Employee Lifecycle Management. These processes undertaken only through a manual channel eat up a lot of precious time and causes hindrance in smooth work flow. IdM allows sharing information, collaborating and innovating electronically in ways which were previously impossible or too risky. - Huge cost involved in compromising security.
Hacking will never go out of fashion and that is a reason enough for businesses to worry. Cybercriminals are becoming more sophisticated, innovative and creative with every coming year. Phishing, vishing, smishing and pharming are the names of few techniques that trap consumers of internet. As you read this article, someone somewhere in the world is getting cyber attacked. So to assume that anyone who has not put checks will miraculously not be targeted is highly flawed. Therefore protecting entry gateway through IAM Solution becomes imperative. It not only ensures better password and access rights but also intuitive to block access when a user is trying to enter from an unregistered location, or a new device. Calculating cost of damage in case of a cyber-attack could be a starting point. This cost must include data lost, dent caused on brand image and loss of future business. - Penalization due to regulatory non-compliance.
Governments have already created regulation and related mechanisms to pass on the onus of user data/information protection to businesses. Organizations are required to treat privacy of user data as both a compliance and business risk issue. Businesses are required to follow best industry standards in order to comply with regulatory clauses. HIPAA and HITECH are two important regulations for healthcare provides to ensure that the patient data is not compromised. Identity and Access Technology helps in adhering to such regulations. Proliferation of mobile and palm-held devices in work premises also bring in need for strict corporate governance and policy enforcement mechanism. BYOD, social integration and access governance become important.
We find businesses concerned about huge cost of traditional on-premise IdM setup. Incase of business with less than 10,000 users, Cloud IAM solution is a cost effective option. In addition to bringing cost of implementation down by 60%, Cloud based Identity Technology (IDaaS) reduces maintenance hassles. Cloud IAM is also receiving acceptance as a secure platform.
