IAM Vs PAM: Key Differences And Considerations For MSPs
Like everything else, the internet is plagued by its fair share of bad actors. To what extent?
Consider this eye-opening statistic: The Internet Crime Complaint Center (IC3) receives an average of 2,412 internet-related complaints daily.
So, what does this mean for managed service providers (MSPs) like you? It’s critical to stay aware of and implement cutting-edge cybersecurity methods, tools, and frameworks, such as Identity and Access Management (IAM) and Privileged Access Management (PAM).
Both IAM and PAM control access to critical resources yet address distinct cybersecurity challenges. In this comprehensive guide, we compare IAM vs PAM, explaining their roles in IT security, pointing out their differences, exploring use cases, and sharing best practices. By the end of this article, you’ll understand exactly how IAM and PAM can help your MSP protect its most valuable assets.
IAM: What is identity access management?
Identity Access Management (IAM) is a framework of policies and technologies designed to manage and control user identities and their respective permissions within an organization’s computer network or system.
It encompasses the following:
- User identification
- User authentication
- User authorization
- User lifecycle management
Ultimately, IAM can increase your MSP’s security and compliance with regulatory requirements by preventing unauthorized access.
Key components of IAM
IAM is comprised of the following core elements:
- User identity management: User identity management involves creating, managing, and deleting user identities throughout their lifecycle.
- Authentication: Authentication is the verification of user identities through methods like passwords, biometrics, or tokens.
- Authorization: Authorization grants or denies users access to resources based on their identity and permissions.
- Single sign-on (SSO): SSO allows users to access multiple applications with one set of credentials, which most users find convenient.
- Multi-factor authentication (MFA): MFA adds an extra layer of security by requiring multiple verification forms.
- Role-based access control (RBAC): RBAC assigns permissions based on user roles, ensuring users only access the resources necessary for their job functions.
Benefits of IAM
Why should your organization consider employing IAM? First, it reduces the risk of breaches by ensuring that only authorized users can access sensitive data and systems.
It also improves compliance with regulatory requirements, automates user access management, and increases productivity by offering easier access control. Additionally, IAM makes the user experience better with authentication methods like SSO.
Use cases for IAM
Below are several of the common use cases for IAM:
- Enterprise-level user management: IAM streamlines the management of user identities across large organizations, helping to make onboarding, role changes, and offboarding more efficient. It provides centralized control over access permissions, reducing the risk of unauthorized access and improving overall security.
- Cloud services and SaaS integration: IAM solutions enable seamless integration with cloud services and Software-as-a-Service (SaaS) applications. This gives SaaS companies consistent access control across on-premises and cloud environments, simplifying user management and increasing security in hybrid IT infrastructures.
- Regulatory compliance: IAM helps organizations meet regulatory requirements by enforcing strict access controls, maintaining detailed audit logs, and ensuring proper data handling practices. It supports compliance with the EU’s General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS), among others, decreasing the risk of penalties and reputational damage.
- Enhancing user experience: IAM also improves the user experience by providing convenient and secure access to necessary resources. Features like SSO reduce the need for multiple logins, while MFA adds more security without compromising usability.
PAM: What is privileged access management?
Privileged Access Management (PAM), on the other hand, zeroes in on controlling and monitoring the activities of privileged users, often referred to as “superusers” or “administrators.” These users possess elevated access to critical systems, networks, and sensitive data.
PAM solutions are designed to secure, manage, and audit these privileged accounts, lowering the risk of unauthorized or malicious actions that could compromise an organization’s cybersecurity posture. They abide by the principle of least privilege, which ensures that only the right individuals have access to the right resources at the right time.
Key components of PAM
PAM is comprised of the following components:
- Privileged account discovery: Privileged account discovery identifies and inventories all privileged accounts within the organization.
- Just-in-time access provisioning: Just-in-time access provisioning grants temporary, time-limited access to critical systems.
- Session monitoring and recording: Session monitoring and recording tracks and logs activities during privileged sessions for accountability and security.
- Credential management: Credential management securely stores and rotates passwords, lessening the risk of credential theft and unauthorized access.
Benefits of PAM
Whether PAM is more advantageous for your MSP than IAM depends on your needs. Benefits of utilizing PAM include:
- Improved security: PAM focuses on securing privileged accounts, often targets for cyberattacks.
- Regulatory compliance: PAM helps organizations meet stringent regulatory requirements by controlling and monitoring high-risk accounts.
- Risk mitigation: PAM also reduces the risk of insider threats and credential theft through strict access controls and monitoring.
Use cases for PAM
Below are several common use cases for PAM:
- Securing administrative accounts: PAM is valuable because it helps secure accounts with privileged access to critical systems and data. By managing and monitoring these accounts, PAM ensures that only authorized personnel have access, minimizing the risk of misuse or compromise.
- Limiting lateral movement in cyberattacks: By enforcing just-in-time access and detailed session monitoring, PAM makes it difficult for attackers to move around a network, thereby containing potential breaches.
- Ensuring regulatory compliance: PAM solutions help organizations achieve regulatory compliance with their strict access rights and comprehensive audit trails.
- Managing third-party vendors and contractors: PAM is also helpful for managing external vendors and contractors needing privileged systems access. It ensures that these users only receive necessary access and tracks their activities to prevent unauthorized actions.
Differences between IAM and PAM
Although both frameworks help MSPs secure access to computer systems, they deal with different aspects of access control. Essentially, IAM oversees all users' identities and access rights within an organization, while PAM, a subset of IAM, only manages and monitors specific privileged accounts.
Let’s consider use cases for a moment. IAM solutions are integral for maintaining operational efficiency and ensuring the right people have access to resources to perform their duties. Given that, IAM systems typically provide usernames and passwords for authentication and manage multi-factor authentication.
Conversely, PAM solutions are primarily geared towards bolstering cybersecurity by securing, monitoring, and managing privileged accounts to prevent misuse. For example, a server with a database that contains personally identifiable information (PII) would need the additional protections afforded by a privileged access management solution.
Below, we dive into several of these key differences in more detail.
Scope of management
One of the primary differences between IAM and PAM lies in their level of permissions. IAM manages everyday user identities and access. PAM, meanwhile, focuses on privileged users and accounts, such as members of an MSP’s internal IT team that maintains the infrastructure and high-value servers and devices.
Focus area
IAM offers broad access management for all users, whereas PAM only provides sensitive or privileged access to certain “superusers.”
Security approach
IAM relies on authentication and authorization to confirm that users are correctly identified and have appropriate access. PAM emphasizes credential security and auditing instead to increase accountability and avoid misuse.
It’s important to note, however, that the two identity access management tools do share some similarities, as seen here:
- Both frameworks aim to control access within an organization
- Both ensure that users have appropriate permissions
- Both protect sensitive data
- Both increase organizational security
- Both strengthen regulatory compliance
- Both improve operational efficiency via automation and centralized management
Considerations for MSPs
These days, MSPs often need both IAM and PAM to protect their networks and systems from threats. As discussed above, IAM gives everyday users broad and authenticated access control, while PAM secures high-risk access for privileged accounts.
When implementing IAM and PAM, your organization should consider scalability, integration capabilities, and compliance requirements. It should also:
- Achieve alignment with your existing security frameworks
- Ensure seamless communication between the systems
- Regularly update your policies to address emerging threats and organizational changes
Implementation strategies
MSPs can follow these steps to deploy IAM and PAM:
- Assess your needs: Evaluate your organizational requirements and security risks.
- Choose the best solutions: Select scalable IAM and PAM solutions that work well with your existing systems.
- Plan your deployment: Develop a comprehensive deployment plan that includes timelines and resource allocations.
- Take things slowly: Roll out IAM and PAM in phases to manage disruptions.
- Train your users: Provide users and system administrators with training to ensure understanding and proper use.
Tips to achieve seamless integration and user adoption include:
- Communicate all the benefits to stakeholders
- Offer continuous support and resources for users
- Frequently review everything and make adjustments as needed
- Collect user feedback to initiate improvements and address concerns
Should your organization use IAM or PAM?
You might wonder which framework is better for your MSP. In truth, using them together can be ideal to increase security via comprehensive access management. IAM will enable your organization to manage its general user identities and access rights, while PAM will monitor and secure privileged accounts.
This combination significantly reduces the risk of breaches and insider threats by controlling and monitoring all access points. Moreover, both systems will improve your MSP’s compliance with regulations and standards.
With that said, there are some considerations to keep in mind:
Challenges and considerations
- Implementation complexity: Integrating IAM and PAM with your existing setup, configuring policies, and ensuring interoperability can be complex and resource-intensive.
- Balancing security with usability: Establishing robust security without impeding user productivity is challenging. Overly strict controls can hinder operations, while lenient policies can compromise security.
- Managing costs: Deploying and maintaining IAM and PAM systems can be expensive. Your organization must balance the cost against the benefits of better security and compliance, choosing scalable solutions that fit your budget.
Implementing a unified security strategy
As your IT team begins developing a unified security strategy for your organization that involves both IAM and PAM, they should start by assessing its security needs and identifying risk areas. Next, they should explore different IAM and PAM solutions, looking for ones that integrate easily with current systems.
From there, policies should be created that address general user and privileged access. Deploy the selected IAM and PAM solutions gradually to help ensure a smooth transition and educate your staff about the new processes and tools.
Finally, have your IT team continually monitor the effectiveness of your new strategy, adjusting policies as needed based on feedback and emerging security threats.
IAM best practices
The following best practices can help your MSP successfully use IAM.
Conduct a needs assessment
Identify your organization’s specific IAM requirements by evaluating your current access management practices and security gaps. Gather input from stakeholders, review your existing policies and systems, and analyze risk areas to confirm the IAM tool you’ve selected will meet your organizational needs.
Establish clear policies
To craft useful policies, your IT team should first define its rules for user access, authentication, and authorization. Outline access levels, enforce password standards, and set procedures for role changes. In addition, frequently review and update your policies to adapt to new needs and threats.
Utilize modern authentication methods
Increase security by employing more advanced authentication methods like MFA and SSO. MFA requires multiple verification factors, while SSO streamlines access across applications with a single login. MFA can be integrated with IAM solutions, while SSO can be configured for your applications and services.
Regularly audit and update access controls
Access controls determine who can gain entry to specific resources within an organization. It’s important to periodically review and update them to keep permissions current and mitigate cybersecurity risks. Regularly check use access logs, verify permissions against roles, and adjust access rights as needed.
PAM best practices
PAM has its own set of best practices, as seen below.
Identify privileged accounts
For PAM to be effective, your IT team must accurately identify the accounts that require access to critical systems and data. Then, they can scan and inventory these accounts using privileged identity management (PIM) tools to achieve oversight and control.
Enforce the principle of least privilege
The principle of least privilege restricts user access to the minimum necessary for their role, reducing potential security risks. To enforce it, assign only the essential permissions for specific tasks and regularly review and adjust access rights to make sure they remain appropriate as roles and responsibilities change.
Implement regular auditing and monitoring
Continuously audit and track the activities of privileged accounts to detect and respond to suspicious behavior. Set up automated tools to log and analyze privileged access and conduct periodic reviews to assess and adjust controls.
Regularly rotate credentials or opt for credential-free login
Credentials, like passwords or keys, are essential authentication details used to access systems. Frequently changing them minimizes the risk of unauthorized access and reduces potential damage from compromised credentials. To further enhance security, consider using a Privileged Access Management (PAM) solution, such as ConnectWise Access Management. This solution offers credential-free login, providing single-use access with encrypted credentials that automatically expire upon logout. Whether you choose to implement automated policies for periodic credential changes or adopt a PAM solution, securely managing and distributing credentials to authorized users is crucial.
Learn more about PAM software
As an MSP, safeguarding your own operations is only half the battle. You also need to protect your clients' sensitive data and systems.
While it can be tempting to compare the two frameworks (IAM vs PAM) and try to choose just one, most MSPs benefit from using both together. PAM’s specialized focus on securing privileged users complements IAM’s broader approach to managing overall user access.
By adopting a comprehensive security strategy with a robust PAM solution like ConnectWise Access Management, your company can uphold its reputation, meet compliance requirements, and reinforce its commitment to providing top-tier, security-first services to all its clients.