Customer Identity Access Management
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January 13, 2025
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2 min read

SaaS Identity and Access Management: Challenges and Best Practices

Judah Joel Waragia
Content Architect

What is SaaS Identity and Access Management?

SaaS Identity and Access Management (IAM) is a system that controls who can access applications and data in the cloud. This helps companies manage user accounts, permissions, and security policies with a lot more accuracy. With SaaS IAM, businesses can make sure the right people have the right access. 

Also, with the SaaS market worldwide expected to reach a whopping 390 Billion USD in 2025, ransomware attacks along with fines and exploitation of data breaches will no doubt follow. But this is completely avoidable!

SaaS IAM prevents unauthorized users from reaching sensitive information - stopping this issue before it even starts. 

Why SaaS IAM Is Essential for Cloud Security?

Cloud security relies on strong access controls, and that is where SaaS IAM plays a major role. What it does is keep unauthorized users from accessing critical systems. But in doing so, SaaS IAM also helps reduce risks like data breaches and account misuse.

Did you know that SaaS companies like Deloitte and DemandScience saw data breaches in 2024? Although the circumstances for both vary, one fact remains the same - a reliable IAM solution could’ve prevented them.

By managing who has access and what they can do, businesses can avoid security gaps. This system also supports compliance with laws and regulations. 

Challenges in SaaS Identity and Access Management

1. Managing Multiple Identities

Managing multiple identities is a big challenge in SaaS IAM. Users often have several accounts for different tools and platforms. This can lead to confusion and mistakes. Employees may struggle to remember many passwords, which can result in weak security practices. Companies must also manage user roles and permissions across various systems. Without a clear process, it is easy to lose track of who has access to what. This increases the chance of data leaks or unauthorized use.

  • Employees often reuse weak passwords, making systems vulnerable.
  • Tracking user access across many tools increases the risk of human error.
  • Without central oversight, it's hard to remove outdated permissions.
  • Confusion over account access can slow down productivity and IT responses.

2. Integration With Legacy Systems

Legacy systems were not designed to work with modern SaaS tools. This creates problems when trying to connect old and new technologies. Businesses often need to maintain these older systems while using SaaS platforms. Using them requires time, money, and expertise. The mismatch can lead to gaps in security or inefficiencies in operations. Companies must find ways to bridge the gap between old and new systems. This can involve custom solutions or third-party tools.

  • Old systems lack the flexibility to connect with modern platforms.
  • Creating custom fixes for compatibility can be costly and time-consuming.
  • Incomplete integration may leave sensitive data unprotected.
  • Ongoing maintenance of legacy systems drains IT resources.

3. Data Silos and Different Ecosystems and Tech Stacks

SaaS applications often operate in separate environments. This creates data silos where information is not shared across platforms. Different ecosystems and tech stacks make it hard to achieve a unified view of access. 

For example, a user may have different permissions in one application compared to another. Managing these differences is time-consuming and prone to errors. It also increases the risk of security weaknesses. Breaking down silos and standardizing access controls is key to effective SaaS IAM. Why does thi matter? Well…

  • Lack of unified access control increases the risk of oversight mistakes.
  • Different tools make it hard to track overall access or audit effectively.

4. Data Compliance and Industry Regulations

Data compliance is a significant challenge for businesses using SaaS. Companies must follow strict rules to protect sensitive information. For example, industries like healthcare and finance have specific regulations. SaaS IAM systems must meet these requirements to avoid fines or legal trouble. Meeting compliance often involves tracking user activity and maintaining detailed records. This requires reliable tools and processes. To make use of these, companies need to stay updated on changing regulations and adjust their IAM strategies accordingly.

  • Non-compliance risks hefty fines and damage to the company’s reputation.
  • Tracking user activity across multiple systems is complex and error-prone.
  • Regulatory audits require detailed, accurate records that can be hard to gather.

5. Shadow IT

Shadow IT refers to employees using unauthorized applications for work. These tools are not managed by the IT department, which creates security risks. Shadow IT can lead to data leaks and compliance issues. Employees may use these tools because they find them more convenient. However, this bypasses the controls set by the company. Identifying and managing shadow IT is a major challenge for SaaS IAM. In general, companies must balance user needs with security requirements.

  • Unauthorized apps can bypass company security measures entirely.
  • IT teams may not even know which tools employees are using.
  • Shadow IT increases the risk of sensitive data being shared improperly.

6. User Provisioning and Deprovisioning

Provisioning involves giving users access to the tools they need, while deprovisioning removes access when it is no longer required. Both processes are critical for security. Mistakes in granting access can lead to unauthorized access, while delays in removing access can leave systems exposed. Managing these processes manually is time-consuming and error-prone. Automated solutions can help, but they require proper setup and monitoring.

  • Manual access processes can delay new employees’ access to tools.
  • Slow granting and removing of access leaves open accounts vulnerable to misuse.
  • Errors in access may grant users too much or too little access.
  • Automated systems need regular checks to prevent potential misconfigurations.

Best Practices for SaaS Identity and Access Management

Complete and Centralized Access Control

Centralized access control makes sure all permissions are managed from one place. This way of doing things makes it easier to monitor and adjust user access. A single system can oversee multiple applications and platforms. Centralized control reduces the chance of errors and improves security. It also simplifies compliance efforts by providing a clear view of access policies.

Principle of Least Privilege

The principle of least privilege means giving users only the access they need. This minimizes the risk of unauthorized actions or data breaches. For example, an employee working on one project should not access unrelated data. This way of doing things limits potential damage if a user account is compromised. Regularly reviewing permissions makes sure that users only have access to what they require.

Separation of Duties (SoD)

Separation of Duties involves dividing responsibilities to prevent misuse. For example, one person might approve a transaction while another processes it. This reduces the risk of fraud or mistakes. SoD is especially important in sensitive areas like finance or data management. Implementing clear rules and oversight helps tasks get handled appropriately.

Using Conditional Access and MFA for Better Security

Conditional access applies rules based on the user’s context, such as location or device. Multi-factor authentication (MFA) adds an extra layer of security by requiring more than just a password. Combining these tools improves overall security. For example, a user logging in from a new location might need to verify their identity with a code. These measures make it harder for unauthorized users to gain access.

Regular Access Audits

Access audits involve reviewing who has access to what and why. Regular audits help identify and fix gaps in permissions. They also make certain there is compliance with security policies. During an audit, companies can remove unnecessary access and update outdated permissions. This keeps systems secure and organized.

Monitoring Access and User Logs

Monitoring access logs helps track user activity and identify suspicious behavior. For example, repeated failed login attempts could signal a security threat. Reviewing logs regularly helps make sure that any issues are detected early. Most IAM and IGA for SaaS, come with tools that for real-time monitoring that improves response times to threats.

Limiting Third-Party Applications for Minimal Shadow IT

Restricting third-party applications reduces risks associated with shadow IT. Companies should approve and manage all tools used by employees. Clear policies and regular training help enforce these rules. By limiting unauthorized tools, businesses can maintain better control over their security.

Conducting Training for Employees on Security Practices

Employee training is essential for effective SaaS IAM. Workers should understand security risks and how to follow best practices. Training sessions can cover topics like password management and recognizing phishing attempts. Well-informed employees are less likely to create security vulnerabilities.

SaaS IAM Solutions and Technologies

Single Sign-On

Single Sign-On (SSO) allows users to access multiple applications with one set of credentials. This simplifies the login process and improves security. SSO reduces the number of passwords users need to remember, lowering the risk of weak passwords.

Conditional Access

Conditional access applies specific rules based on user behavior or context. For example, access might be denied if a login attempt comes from an unrecognized device. This way of doing things adds an extra layer of protection.

Passwordless Authentication

Passwordless authentication replaces traditional passwords with methods like biometrics or security tokens. This reduces the risks associated with stolen or weak passwords. Aside from this, it also simplifies the user experience.

Adaptive Multi-Factor Authentication

Adaptive MFA adjusts its requirements based on the situation. For example, a trusted device might require fewer steps to log in. This route balances security with convenience - making sure there security is smart and not just needlessly complex.

PAM, ABAC, and RBAC

Privileged Access Management (PAM), Attribute-Based Access Control (ABAC), and Role-Based Access Control (RBAC) are different ways to manage permissions. PAM focuses on high-level access, ABAC considers specific attributes, and RBAC assigns roles. Each method opens unique benefits for SaaS IAM.

User Lifecycle Management

User lifecycle management automates the process of adding, updating, and removing user accounts. This allows access that is always warranted and also reduces manual errors. Aside form this, It also simplifies onboarding and offboarding processes a huge deal.

Device Passkeys

Device passkeys use hardware-based security to verify users. This method adds an extra layer of protection and helps secure sensitive data. Passkeys are especially useful for securing mobile and remote access.

What to Consider When Choosing an IAM Solution

  • Scalability: An IAM solution should grow with your business. It must handle more users and applications as your needs expand. Scalable systems make sure there long-term efficiency and reliability.
  • Pricing: Pricing is an important factor when choosing an IAM solution. Companies should consider both upfront costs and ongoing expenses. Comparing options helps find the best value for your budget.
  • Customer Support: Reliable customer support allows problems to be resolved quickly. Look for vendors with responsive and knowledgeable teams. Strong support can save time and reduce downtime.
  • MFA or 2FA: Multi-factor authentication (MFA) and two-factor authentication (2FA) add extra security layers. These features should be part of any IAM solution. They help protect against unauthorized access.
  • APIs and SDKs for Complete Integration: APIs and SDKs allow IAM solutions to connect with other tools. This creates smooth operations across your tech stack. Strong integration capabilities are essential for modern businesses.
  • Directory Sync: Directory sync keeps user data consistent across systems. This simplifies account management and reduces manual work. Look for solutions that support popular directories like Active Directory or LDAP.
  • Automated Provisioning and Deprovisioning: Automation allows that user accounts are created and removed efficiently. This reduces errors and improves security. In the grand scheme, automated solutions save time and help maintain proper access controls.

How Infisign Can Empower Your SaaS

Universal SSO for Your Full Tech Stack

Infisign’s Single Sign-On (SSO) streamlines login processes across all systems, reducing frustration for employees. SaaS founders can use SSO to improving user satisfaction and attract clients seeking secure, user-friendly solutions. This leads to simplified tech stack management and reduced password-related support issues. For CIOs, SSO improves security by centralizing access controls while boosting employee productivity.

PAM, ABAC, and RBAC

Infisign combines Privileged Access Management (PAM), Attribute-Based Access Control (ABAC), and Role-Based Access Control (RBAC) to deliver fine-tuned security. SaaS founders can showcase these advanced controls as key selling points to attract security-conscious customers.

This lets you add layered access protections to safeguard sensitive accounts and data. What this does is allow  consistent and flexible controls that adapt to operational needs without disrupting workflows.

AI Access Assist

Infisign’s AI Access Assist identifies risks and improves decision-making around user permissions. SaaS founders can use this innovation to build trust with clients by highlighting proactive security measures. By letting AI handle complex access decisions and flagging unusual behavior, you can help make process a whole lot faster.

What this does is help companies gain an additional layer of security to prevent breaches and allows smarter, more secure access management.

Adaptive MFA

Infisign’s Adaptive Multi-Factor Authentication (MFA) adjusts security based on user behavior. For SaaS founders, this demonstrates a commitment to secure yet user-friendly solutions.

This balanced way of doint things minimizes disruptions for trusted users while strengthening security for high-risk activities.  CIOs appreciate the reduced risk of breaches and better user satisfaction, allows a balance between protection and usability.

Directory Sync for Multiple Existing Directories

Infisign’s directory sync feature works with systems like Active Directory or LDAP. SaaS founders can market this as a valuable feature for businesses with complex setups.

This helps employees save time by avoiding manual updates and makes sure that there is directory consistency. Businesses through this benefit from improved efficiency, reduced errors, and the ability to manage multiple locations effortlessly.

6000+ APIs and SDKs for Better Integration

Infisign’s extensive library of APIs and SDKs simplifies integration with various platforms. SaaS founders can promote this as a flexible solution for diverse client needs. 

Companies gain the ability to customize workflows and tools, making sure Infisign fits seamlessly into existing workflows. This also adds improved productivity and optimized operations, creating a more agile and adaptable business environment.

Key Takeaway With SaaS Identity and Access Management

SaaS IAM helps protect sensitive data while simplifying user access. Managing identities across platforms reduces security risks and improves efficiency. Automating processes like provisioning saves time and prevents mistakes. Addressing challenges like shadow IT and data silos strengthens overall security.

Infisign is an IAM software built on a zero-trust framework. With tools like ABAC, conditional access, and adaptive MFA - it makes data compliance a whole lot easier. Not to mention it keeps you audit-ready at any possible moment. Want to know how? Reach out to the team for a free demo.

Step into the future of digital identity and access management.

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Judah Joel Waragia
Content Architect

Judah Joel Waragia specialize in crafting engaging and informative content on cybersecurity and identity management. With a passion for simplifying complex technical topics, Judah excels at creating content that resonates with both technical and non-technical audiences. His ability to distill complex ideas into clear and concise language makes him a valuable asset to the Infisign team.

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