What is IAM?

Identity and Access Management (IAM) is a set of tools and policies that help an organization know who its users are and decide what they’re allowed to do with digital resources. In simple terms, it makes sure the right people get the right access, and no one else can get in.

Let's break it down

  • Identity - the digital “name” of a person, device, or application (like a username or employee ID).
  • Access - the permission to use or view something (such as opening a file, using an app, or changing a setting).
  • Management - the process of creating, updating, and removing those identities and permissions, usually from a single control panel.
  • Tools & policies - software (e.g., Azure AD, Okta) and rules (e.g., “only managers can approve expenses”) that enforce the decisions.

Why does it matter?

Because it protects sensitive data from being seen or changed by the wrong people, helps companies follow legal and industry rules, and reduces the hassle of remembering many passwords or manually granting rights.

Where is it used?

  • A large corporation’s internal network, where employees need different levels of access to files, HR systems, and finance apps.
  • Cloud platforms (AWS, Azure, Google Cloud) that host websites and databases, using IAM to control who can launch servers or read storage buckets.
  • Software-as-a-Service (SaaS) tools like Salesforce or Slack, where customers’ employees log in and need role-based permissions.
  • Government agencies that must strictly limit who can view classified or personal citizen information.

Good things about it

  • Centralized control: one place to add, change, or remove users and permissions.
  • Scalability: works for a handful of users or millions without redesign.
  • Audit trails: automatic logs show who did what and when, aiding security investigations.
  • Supports “least-privilege” security, giving users only the access they truly need.
  • Enables self-service features (password reset, access requests) that reduce IT workload.

Not-so-good things

  • Can be complex to set up correctly, especially in organizations with many legacy systems.
  • Licensing and subscription costs may be high for small businesses.
  • Over-strict policies can frustrate users and slow down work if not balanced properly.
  • Integrating IAM with every application sometimes requires custom development or third-party connectors.