New remote and hybrid working styles have companies thinking deeply about the devices employees use to access company infrastructure. And many are looking into options for privileged access management (PAM) and identity access management (IAM). Both are common methods for maintaining high levels of security while enabling access to corporate applications, regardless of location and device.

However, these terms are often used as though they’re interchangeable when in fact there are some key differences. IAM is used to identify and authorize users across the entire organization, while PAM serves as a subset of IAM focused on privileged users — those who need permission to access more sensitive data.

Read on to learn about the key differences between IAM and PAM, and to see which is best when it comes securing access to sensitive information at your organization.

This new working style has encouraged companies to think deeply about the devices employees use to access company infrastructure. Privileged access management (PAM) and identity access management (IAM) are common ways of maintaining high levels of security while enabling access regardless of location and device.

However, these terms are often used as though they are interchangeable. It’s important for business leaders to understand these approaches and the roles different technologies play in securing access to private and sensitive information.

IAM: What is Identity Access Management?

IAM refers to the process of identifying, authenticating, and authorizing user profiles using unique digital identities. The importance of this process has been highlighted in the 61 percent of recent data breaches that involved using credentials of some type. IAM solutions provide enterprises with a combination of features that are compatible with a zero trust approach to cybersecurity, which requires users to verify their identity each time they request access to a server, application, service, or any other company information.

IAM solutions can be deployed on-premises and via the cloud. Single sign-on (SSO) and multi-factor authentication are common components of IAM solutions, and these systems work in tandem to ensure unauthorized users don’t gain access to sensitive information. SSO refers to a login system that simplifies the process of accessing multiple applications once the user’s identity has been verified. MFA refers to the process of authenticating users with both passwords and another means of verification, such as security tokens and biometric authentication.

Strengths of IAM

  • IAM solutions can be managed on premises or delivered via the cloud. With more businesses adopting cloud-based solutions to run in hybrid work environments, access must adapt to the unique needs of an always-connected workforce. Cloud-based IAM solutions allow businesses to simplify and secure access to applications, even with an increasing number of unmanaged devices being used to conduct business.
  • Modern IAM solutions can help businesses automate crucial but tedious authentication tasks. In the past, IT teams had to manually create profiles and adjust authentication methods for various users based on their roles and access levels. IAM solutions allow IT teams to automate such processes and focus on high-value tasks instead of spending large amounts of time simply laying the foundation for employees to access company information.

Limitations of IAM

  • Service providers often provide IAM solutions specifically optimized for their own platform. While IAM solutions are relatively ubiquitous at this point, companies can sometimes struggle to manage multiple IAM products that come with their service subscriptions. However, the right solution allows businesses to consolidate IAM processes, providing enhanced visibility and ease of use.
  • Some vendors use SSO or MFA as a stand-in for IAM. In reality, IAM refers to a collection of services and features including SSO and MFA. These features combine to make an IAM solution useful. The most modern solutions have the ability to secure access dynamically, routing users to the most appropriate authentication mechanism based on user type, risk profile, geolocation, and device health posture.

PAM: What is Privileged Access Management?

PAM is a subset of IAM that deals with specific groups of users with the same profile type. This can refer to profiles of employees in HR teams, legal teams, or IT teams, where users need an elevated level of access to do their jobs effectively. PAM allows businesses to limit and control user’s actions and access to sensitive information.

PAM solutions often work alongside other solutions and add a layer of security above existing cybersecurity policies. Security information that is accessed through PAM systems is usually kept separate from general employees and can be secured quickly without affecting access to the entire technology stack used by an organization.

Strengths of PAM

  • Companies can go beyond passwords to manage privileged access. Privileged information has to be protected. PAM solutions allow companies to go beyond using passwords by managing individual sessions and providing dynamic authentication for each session. This means there is a dynamic access point that’s difficult for malicious actors to pinpoint even if they are successfully authenticated via IAM.
  • By providing and revoking access to critical systems, organizations can improve incident response time. Despite the effectiveness of modern security systems, human error can sometimes cause unanticipated vulnerabilities that require IT teams to react quickly and efficiently to minimize damage. PAM solutions allow businesses to easily provide and revoke access to critical systems when emergency situations arise. With the right solution, organizations can dynamically provide and revoke access to applications based on user risk scores as a trust factor.

Limitations of PAM

  • Access is granted based on profile types rather than individual users. PAM solutions require IT teams to define the level of access each profile type is allowed to have and grants access based on a defined set of rules. This means that companies must carefully consider the privileges that each profile type receives.

Key Differences Between IAM and PAM

While both services are related to cybersecurity and access control, IAM and PAM serve different audiences. IAM solutions are generally accessed by every member of an organization. Each user is identified as they access company infrastructure, regardless of the device they choose to access it on. PAM solutions primarily serve users who require greater levels of access to privileged information. While IAM identifies each user and allows them access to an array of applications and services, PAM manages access and user’s actions on highly sensitive systems that are often limited to those with administrative privileges.

This difference also means the level of risk each system manages is vastly different. Enterprises typically do not want any unauthorized person to access any part of their corporate infrastructure. However, the risk associated with access to a single source of data is far lower than the threat associated with access to entire databases or critical business systems. As such, the measures taken to identify and authorize access differ between the two systems.

Why Comprehensive Secure Access Solutions Are Key for Managing Cybersecurity in a Challenging Threat Landscape

The increased adoption of hybrid-work arrangements and the widespread use of unmanaged devices create unique cybersecurity risks for enterprises. As a company spreads across geographies and devices, the attack surface for malicious actors grows proportionally. It’s critically important for businesses to keep potential attack vectors at an absolute minimum. This is especially true in an environment where data breaches have an enlarged impact on business continuity and profitability. The average total cost of a security breach increased by 10 percent over the last year — remote work means a breach can now cost companies $1 million more than it did before the COVID-19 pandemic.

Identifying and managing an increasing number of security threats and a rapidly growing attack surface require businesses to build multiple layers of protection. However, doing so can be frustrating and tedious due to the number of areas within a company that require protection. As companies grow, the number of services and applications they use to conduct daily operations grows, too. It’s necessary to protect access for each of these vectors as they represent potential points of entry into an increasingly interconnected technology stack.

This is why Citrix takes a unified approach to secure access — one that simplifies cybersecurity management without compromising efficiency, effectiveness, or scale. With Citrix Secure Private Access, organizations can easily secure access to applications using adaptive authentication and contextual policies built on the zero trust principles.

A comprehensive cybersecurity system that combines IAM and PAM solutions to deliver protection via the cloud is crucial for the hybrid future of work. Continue to explore the importance of access management and cybersecurity by checking out our resources on securing a remote workforce and our interactive zero trust assessment tool.