Identity and access management (IAM) solutions are instrumental in your overall security posture. Implementing a robust IAM program and protocols helps your company safeguard against unwanted data breaches and unauthorized access to business assets. Yet, there are substantial costs involved in deploying and managing an IAM program. That reality underscores the need for tools to demonstrate the program’s value by calculating its return on investment (ROI).
Calculating the Cost
Finding the ROI in IAM starts with understanding the potential costs and advantages.
Potential Expenses
The primary costs of IAM implementation are direct expenses. These include:
- Charges are assessed by the IAM platform or service provider.
- IT talent acquisition costs, such as recruiting and onboarding new employees.
- Training costs.
- More IT overhead.
- Expenses for physical infrastructure, such as adding servers or workforce terminals.
Your organization also has a high potential cost for not implementing IAM protocols that impact the ROI. For example, your business could incur substantial financial losses if a data breach happens. According to IBM, the average U.S. data breach costs a company $9.44 million. Add the possibility of future revenue declines from reputational damage, and the amount can escalate quickly.
Potential Benefits
Consider the potential benefits your organization can experience through implementation that affect your bottom line. These advantages can be customer-centric benefits, like:
- Multifactor authentication (MFA) that builds trust.
- A better user experience that boosts engagement and brand loyalty.
- High conversion rates through simplified yet secure registrations.
- Minimized customer risk and fewer errors.
From a business standpoint, your company can also gain:
- Better regulatory compliance.
- Less administrative IT burnout.
- Lower breach-induced costs.
- Fewer data silos and more accurate information.
ROI of Old or Outdated IAM Solutions
For years, companies depended on legacy programs like Active Directory® (AD) from Microsoft® to manage IAM. This solution was often cost-effective since it came as a part of several other application license bundles. Unfortunately, AD was an on-premise solution that required significant infrastructure and time investments for effective management, reducing its ROI.
The evolution to cloud-based computing also presented many challenges with AD as an IAM solution. As web-based applications became the norm, companies had to purchase AD “upgrades,” such as single sign-on (SSO) capacity, MFA security and privileged access management. These additional costs further drove down ROI while providing a less-than-ideal solution.
ROI of Modern IAM Solutions
Today’s IAM products and services can help manage the task across the entire IT footprint more cohesively. Modern IAM providers like Optimal IdM have combined crucial IAM practices into one offering. We’ve built a cloud-native solution that supports SSO, MFA, delegated authority and self-service tools.
As a result of our unique platform, we provide a cost-effective answer for unified IAM with an exceptional ROI. Our team collaborates with you to understand your organizational needs and design a customized strategy.
To calculate the ROI of our IAM for your business, follow a simple mathematical formula — divide the investment’s net value by its cost and multiply that figure by 100. The value you assign to intangible factors will likely vary depending on your industry and company insights. It’s helpful to track these figures over time for a complete and accurate picture of your results.
What Does My Company Need for IAM?
Choosing the best IAM solution and maximizing ROI starts with analyzing your business’s current position. Consider factors like:
- How many users you have throughout your enterprise and any forecasted workforce or user growth
- What the typical user lifecycle is for your organization
- How existing workflows are structured and what inefficiencies exist
- What technology assets and data users need to access
- How to integrate or retire legacy systems
- What compliance measures apply to processes and protocols
- How many privileged access accounts you need
Once you’ve compiled this data, you can compare potential solutions to ensure you find the ideal one for your unique environment.
Contact Optimal IdM to Maximize the ROI of Your IAM Solution
We set ourselves apart with the six S’s that drive value for our business partners. Our team is ready to help you develop a bespoke, cost-effective IAM solution for your company. Contact a specialist online for more information, or try our platform with a free trial!
