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The ROI of Modern Identity Management: Building the Business Case for IDaaS

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In this world of rapid growth and transformation, businesses around the globe are searching ways to jumpstart their growth and they have set their eyes on digital transformation. With the importance of security, scalability and efficiency growing rapidly, IDaaS (Identity As A Service) is becoming an increasing need. But moving past such technical functionalities, IDaaS enables enterprises to create a strong modern operational framework. Today, we look deeper into IDaaS and how it affects cost and risk for businesses, along with great operational efficiency.

Understanding The Total Cost of Ownership (TCO)

IAM systems as of today have become a necessity for most organizations, but the capital and operational cost needed to implement such a system can be huge for growing businesses. You will find that traditional IAM solutions come with hidden costs that SMEs can overlook. And, from maintaining legacy systems to building on-premises servers, the TCO can spiral up.

On the other hand, implementing an IDaaS system can eliminate infrastructure cost completely and since everything is hosted in the cloud, the cost regarding updates, maintenance and other issues are reduced. By making the shift towards IDaaS, it enables focus to be switched towards business goals and ideas instead of maintaining server upgrades.

As an instance, Gartner’s data indicates that utilizing IAM solutions hosted on the cloud cuts set up expenses by as much as 50% compared to a conventional IAM solution. These reductions make IDaaS not just a technological improvement but rather a rational business decision.

IDaaS Measurable Advantages

1. Increased Productivity

By integrating IDaaS, organizations will sytematize their identity management system via automation of user provisioning, de-provisioning and access biopoly governance tasks. This not only diminishes the workload of the IT departments but allows them to pursue more effective projects.

In addition, technologies such as Single Sign-On (SSO) and adaptive authentication add to the overall experience of users and help reduce some losses related to the inability to access password features. Studies directed by Forrester show that companies that deployed IDaaS would reduce their helpdesk costs by almost 60% attributable to password reset activities.

2. Risk Reduction

Data breach always comes with a cost and the cost can be considerable. According to IBM’s Cost of a Data breach report 2023, the average cost of data crime across the globe is $4.45 million. IDaaS helps to alleviate these risks by provision of robust security measures like Multi-Factor Authentication (MFA), Biometric authentication, and AI based anomaly detection tools.

Cybersecurity is made a breeze with IDaaS as it focuses on adopting a Zero Trust methodology. This kind of strategy dramatically decreases the unauthorized cost associated with the business and also the possibility of such happening. In a nutshell, this means that financial losses and the bad reputation of the business can be avoided.

3. Reduction in Costs of Compliance

Working according to data protection measures such as GDPR, HIPAA, and CCPA is not only a headache, but costly as well. But with the use of IDaaS, it is much easier as digital reporting, auditing and regulatory mechanisms are built into it allowing the company to be compliant with all its operations.

For example, companies that implement an IDaaS only have to spend a small amount of resources in actually making compliance reports and audits as they get many things automatically done. So the result of all this would be lower costs of compliance and fewer risks of violation disposal penalties.

Investment and ROI

If a company wants to incorporate IDaaS into its processes, then it has to expect issuing upfront. But in the longer run, IDaaS aids in reducing same initial costs and provides greater returns. Such costs include common expenses such as subscriptions, integrals, and manual staff training. Such expenses are covered by many quantifiable benefits which include:

  • Saving on IT Costs: With auto queue processes, enormous manual control is no longer a requirement.
  • Decreased Infrastructure cost: With software on the cloud, there is no requirement for costly on-site equipment.
  • Increased Employee Performance: Employees can quickly and easily access what they need, therefore increasing their productivity.
  • According to various organizations, IDaaS proves to be beneficial with 150-200% ROI in a period of three years due to cost reduction and operational advancement.

Metrics That Are a Measure of Success

Once an IDaaS model is put into operation, a firm must keep record of the following KPIs in order to determine how effective it has been:

  • Time Taken to Provision/De-Provision Accounts: Quick provisioning cuts down new employee onboarding downtime and hence improves agility.
  • Password-Related Helpdesk Tickets: There is a reduction in password complications hence, an enhancement in user experience.
  • Incidents of Unauthorized Access: A positive decrease in security incidents which implies the success of MFA and anomaly detection comes into play.
  • Audit and Compliance Readiness: A smooth audit indicates a prominent level of compliance with the rules and regulations of the authorities.

Alot of value is provided by IDaaS and it can be improved even further with the help of these metrics.

Real-World Success Stories

The Banking Sector:

The bank’s access management was very granular rather complicated since they had to accommodate thousands of employees across different geographies. They used IDaas with biometrics and multi-role provisioning for access control which improved the existing security, cut provisioning time by 70% thus cutting down the operational costs by hundreds of thousands or even millions.

Healthcare Industry

In order to satisfy the requirements of HIPAA, a sizable healthcare services company made use of an IDaaS system to protect their patients’ details. Their implementation of compliance feature coupled with audit reports saw security breaches decrease by 50%.

Retail And E-Commerce:

To be able to better its customers’ experiences, a worldwide e-commerce business sought the assistance of IDaaS. SSO and biometric logins raised customer satisfaction by 30% and their losses in relation to fraud went down.

These examples demonstrate the diverse applicability of IDaaS serving to benefit firms’ bottom lines as well as drive growth and operational efficiencies.

Conclusion

The return on investment in the area of contemporary identity management continues to supersede beyond just reducing cost incurred in business – rather it aimed at providing businesses with tools needed in order to help them operate securely and effectively in a world that is becoming more complex.

With our in-depth security mechanisms that incorporate stunning biometric authentication and AI features, TrueID has everything it takes in order for organizations to not only survive the current landscape but also be prepared for future opportunities.

Therefore, let TrueID take you through this process seamlessly, as the right identity management system is no longer just like many other tools and systems you have at your disposal, but rather becomes an indispensable tool as it provides a significant competitive edge to the business.

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