SaaS: Be careful what you sign up for

There is no question that the world is moving from on-premises software to cloud-hosted, vendor-managed alternatives. Software-as-a-Service (SaaS) means that applications are professionally deployed and managed by specialists and hosted in someone else’s data center. Success stories including Salesforce.com, Microsoft Office 365 and ServiceNow are just examples of this macro trend.

When organizations move applications from on-premises to SaaS, there is a risk of losing significant capabilities. This happens because legacy software has evolved over decades to handle complex edge cases, while SaaS alternatives are relatively new and often missing key features.

This is not always the case, but seems to be quite common in the IAM segment. While solutions such as Salesforce and Office 365 are “feature complete” in the sense that they offer materially the same capabilities as on-premises alternatives, services that are branded as “Identity as a Service” (IDaaS) from Okta, Azure AD and others are much thinner, offering some combination of directory services, single sign-on (mainly via federation), basic (de)provisioning to SaaS applications and in some cases 2FA or simple account creation and deactivation.

In other words, IDaaS is often a misnomer, referring instead to single sign-on as a service (SSOaaS) plus some very limited IAM features. There is nothing wrong with these services — but calling them IDaaS is not quite truth in advertising as customers may get less than they expect.

There is no technical barrier preventing vendors from offering more feature rich IAM systems as a service. Indeed, IAMaaS is probably a better acronym than IDaaS for solutions that include connectors to manage both on-premises and SaaS applications, both automated and request/approval based access provisioning and governance features such as access reviews, approval workflows, analytics, segregation of duties policy and role based access control.

Hitachi ID, and doubtless some competitors as well, offers exactly this: full-featured IAM hosted in the cloud and managed by the software vendor.

One of the expectations that organizations bring to SaaS is shorter, less costly implementations. In practice, this has nothing to do with where the application is hosted (on-premises versus cloud) and everything to do with standardized configurations and frequent, automated version upgrades. In this regard, Hitachi ID may be unique, as we offer “Identity Express” — a set of standardized business processes for workforce IAM and for partner portal IAM, which helps both to speed up IAM implementations and provide more feature-rich joiner/mover/leaver process automation than would be possible with a custom approach to system deployment.

For those of you with a mandate to “move to the cloud,” the guidance is two-fold: (a) understand the difference between IDaaS (really SSOaaS) and IAMaaS (hosted, leased, managed IAM) and (b) focus on adopting best practices business processes, not just moving the IAM system from your data center to someone else’s.

Leave a Reply