TL;DR
Cloud identity solutions outperform legacy systems across three critical dimensions: privacy, security, and efficiency. By centralizing identity management with trusted third-party providers, organizations gain robust encryption, scalable infrastructure that eliminates outdated perimeter-based security, and simplified IT operations — all while reducing costs associated with hardware, licensing, and fragmented access management.
| Dimension | Legacy Identity Systems | Cloud Identity Solutions |
|---|---|---|
| Privacy | Patchwork identity islands; unclear data location | Centralized encryption (e.g., AES-256); managed key rotation by experts |
| Security | Perimeter-based model; fails against IoT, remote workers, insider threats | Scalable infrastructure; full admin visibility; no perimeter dependency |
| Efficiency | Fragmented infrastructure; password issues; recurring license and hardware costs | Single sign-on; no hardware overhead; simplified subscription-based budget |
The benefits of cloud-based identity solutions
Cloud-based services are becoming more and more common as organizations seek out secure and efficient solutions for their IT needs. A 2016 guide from IDC, a market research firm, predicts that by 2019, global spending on cloud services will rise to over $141 billion—double the amount of spending in 2015. One of the functions increasingly provisioned from the cloud is identity.
CIOs and others considering outsourcing cloud identity solutions to a third party expert need to know what the benefits are. Let's take a look at how cloud identity supplies improved privacy, security, and efficiency over legacy identity systems.
How does cloud identity improve privacy over legacy systems?
Legacy identity systems are all too often patchwork quilts of solutions, with "identity islands" floating around disconnected from one another. In this scenario, privacy ends up being patchwork as well. According to a Ponemon study, more than half of IT practitioners do not know where sensitive or confidential company data is located. If they don't know where it is, it stands to reason that they also do not know which identities can access that information.
Enter the cloud. With identity provisioned by experts, storage of sensitive data is managed for companies by trusted third parties. Encryption keeps the information secure. Just imagine asking an overworked employee of a company with legacy systems where the private key is stored for a document full of trade secrets, or who has memorized the passphrase to unlock that key. With the cloud, top-notch encryption is provided throughout by default rather than applied piecemeal.
What encryption practices should a cloud identity provider use?
Quality cloud providers will use the right encryption schemes and practices to keep sensitive information private. Both data at rest and data in transit should be encrypted, and schemes such as AES-256 should be employed. Key management is also essential—unique keys should be frequently rotated, for instance. Encryption and privacy are best managed by the cloud, not by harried teams with plenty of other responsibilities on their plates.
How does cloud identity strengthen security beyond the traditional perimeter?
Legacy security has been founded on the concept of the secure perimeter. In this model, the network boundaries of an organization are sharply defined and defended, perhaps by network security monitoring and other solutions.
Why is the traditional security perimeter no longer sufficient?
But with the Internet of Things (IoT), telecommuting personnel, and failing firewalls, the idea of the secure perimeter is outdated. The IoT, with its Wi-Fi (Wireless Fidelity)-enabled products, means countless devices accessing company networks, exhausting software or infrastructure that cannot scale sufficiently. Remote workers mean there is no longer a perimeter that can be secured. And failing firewalls don't address insider threats.
How does cloud identity address modern security challenges?
Cloud identity solves these problems.
- First, the cloud infrastructure can scale to meet the expanding needs of the IoT or workforce devices.
- Second, the cloud is available anywhere, so it does away with the outdated concept of the organizational boundary or perimeter.
- Finally, administrators have total visibility into what access their users have and what they are doing with that access.
How does cloud identity make IT operations more efficient?
Legacy identity systems can really bog down organizations. Users forget passwords and have other problems with the sign-on process. Lack of visibility into what applications are accessing causes headaches as IT teams try to figure out the answers. Infrastructure is fragmented, with systems divided to provide access to different types of devices and users.
Cloud identity, on the other hand, simplifies. Users generally have a single account for each digital activity. A single sign-on solution via cloud identity can grant access dynamically to a multitude of resources for any particular user. There's no cumbersome hardware to fill server rooms, no software to "patch and pray." It's as straightforward as it gets.
How does cloud identity simplify IT budgeting?
Cloud identity also makes the IT budget much simpler. There are costs for subscribing and administration, but that's it. The following costs disappear:
- Recurring license fees for software
- Expenses for ever-expanding server rooms
- VPN setups
- Hardware repairs
So, accounting will appreciate the efficiency in addition to IT.
Why should organizations choose a cloud identity solution?
Businesses need flexibility for their tools, and the cloud offers that. It's always available and always on, with a host of applications and processes for companies to choose from. With a cloud identity solution, companies can connect their thousands of devices with countless apps in a secure and efficient manner. It's easy to do, and quickly boosts the privacy, security, and efficiency of your operations.
Frequently asked questions
What makes cloud identity more private than legacy identity systems?
Legacy systems often consist of disconnected 'identity islands,' making it difficult for IT teams to track where sensitive data lives or who can access it. Cloud identity centralizes this management, applying strong encryption — such as AES-256 — to both data at rest and data in transit, with regular key rotation handled by dedicated experts rather than overburdened internal teams.
Why is the traditional security perimeter no longer an effective defense?
The rise of Internet of Things (IoT) devices, remote workforces, and increasingly ineffective firewalls has eroded the concept of a fixed network boundary. These factors introduce access points that perimeter-based models cannot adequately protect, and firewalls alone do nothing to address threats that originate from inside the organization.
How does cloud identity handle the security demands of IoT and remote workers?
Cloud infrastructure is designed to scale dynamically, accommodating the growing number of devices connected through IoT. Because cloud identity is accessible from anywhere, it removes the dependency on a physical perimeter entirely, while giving administrators complete visibility into user access and activity.
What efficiency problems does cloud identity solve for IT teams?
Legacy systems create friction through forgotten passwords, fragmented infrastructure, and limited visibility into application access. Cloud identity consolidates this with a single user account model and single sign-on (SSO) capabilities, eliminating the need for on-premises hardware and the ongoing burden of software patching.
How does switching to cloud identity affect an organization's IT budget?
Cloud identity replaces a complex web of costs — recurring software license fees, expanding server room infrastructure, VPN configurations, and hardware maintenance — with a straightforward subscription and administration model, making budgeting more predictable for both IT and finance teams.
What should organizations look for in a quality cloud identity provider?
A reliable cloud identity provider should offer end-to-end encryption using industry-standard schemes, proper key management with frequent rotation, scalable infrastructure to support growing device and user counts, and full administrative visibility into access permissions and user activity.
Ready to make the switch? Try an Okta demo today.
