What is a hybrid cloud environment?

A hybrid cloud is an IT environment in which cloud applications are combined with on-premises applications and private cloud environments. For example, an organization combines Microsoft 365 for office productivity with an on-premises CRM system.

What is a multi-cloud environment?

Multi-cloud refers to organizations that use multiple cloud providers for their IT services. For example, an organization uses SaaS services from multiple cloud providers.

Cloud IAM

Q: What is a cloud-based IAM?

A cloud-based IAM is an Identity and Access Management solution delivered from the cloud as a service to companies and organizations.

A cloud-based IAM platform is an Identity and Access Management (IAM) solution delivered through the cloud. Customers connect their systems to the platform over the public internet. This raises common questions: how does it work, what benefits does it offer, and are there any drawbacks? In addition to cloud-based solutions, on-premises IAM platforms are also available, and some organizations may have valid reasons to choose them. We also explain what a multi-cloud IAM solution is and when it may be the right choice.

What Is a Cloud-Based IAM?

An IAM platform manages digital identities (user accounts) and their access rights within an organization's IT environment. An IAM platform typically consists of several elements. The exact architecture differs by vendor, but the design of HelloID, Tools4ever's cloud-based IAM solution, is a good example. HelloID uses three modules:

Access Management: Real-time access capabilities that secure user sessions. This includes authentication and authorization functionality, as well as Single Sign-On (SSO) and Multifactor Authentication (MFA).
The Provisioning module automatically assigns users to accounts and access rights. Within HelloID, we use ABAC (Attribute-Based Access Control) to automatically grant permissions to users based on attributes such as role, department, and location.
Service Automation. This capability automates IAM-related self-service processes, for example, the request of additional access rights.

The IAM platform is then connected to source systems and target systems. Source systems include HR systems that contain user information for provisioning. The accounts and permissions that are issued are propagated by your IAM platform to the connected target systems. These are the business applications where accounts must be created and permissions configured.

In a cloud-based IAM platform, the IAM functionality runs on a cloud platform, and all systems are connected over public internet links to the various source and target systems. The cloud provider is responsible for development, the roadmap, and the technical management of the platform. As a customer, you consume IAM capabilities as a service; you can focus on using them, and you generally pay based on usage.

Benefits of a Cloud IAM Platform

The benefits of cloud IAM platforms are similar to the benefits of cloud solutions in general. Below are several key advantages:

Scalable IAM Solution: Pay-as-you-go is a major advantage of cloud services, including cloud IAM solutions. You pay based on the number of users and the functionality in use.
Flexible IAM Integration: An IAM environment must connect to one or more source systems and many target systems. Since those systems increasingly run in the cloud, it is often easier and more flexible to use a cloud platform for your IAM functionality as well.
Functional IAM Administration Only: Technical platform management is handled entirely by the IAM service provider, which manages capacity, reliability, and platform integrity. Your internal IT staff can focus on functional administration. Which capabilities do they want to use, and which systems do they want to connect?
Always the latest software version: The IAM cloud provider manages a roadmap in consultation with customers. New functionality is continuously developed and rolled out. The customer does not need to manage this and can decide which features to use.

Beyond the advantages of a cloud-based IAM solution, it is often simply the logical choice. Many organizations have a deliberate cloud strategy and aim to phase out their on-premises infrastructure over time. The best-known example is office productivity, where organizations intentionally move to Microsoft 365 or Google Cloud. This is reinforced by vendors that explicitly focus on cloud and scale back their on-premises software development. In that context, it is not logical to continue hosting and managing your IAM platform yourself.

Cloud vs. On-Premises IAM

There are still customers who choose an on-premises IAM platform, and there can be a good reason to do so.

It often starts with your installed base. If you invested in an on-premises IAM platform a few years ago and it still meets requirements for functionality, performance, and manageability, organizations wait until it is truly time to select a new IAM; you follow the lifecycle and do not retire software prematurely.

In addition, larger organizations in particular want direct control over administration and custom add-ons. If you have many specific requirements with custom features and integrations, there can be a business case for an on-premises solution. However, cloud IAM solutions can still be a solid alternative in that scenario. Many modern IAM platforms offer ample room for custom add-ons as cloud services, and there are also single-tenant cloud options that give customers even more control.

Multi-Tenant or Single-Tenant Cloud IAM Solution

When you evaluate a cloud-based IAM solution, you can choose between single-tenant and multi-tenant options:

Some larger organizations prefer a single-tenant option. With a single-tenant solution, you have your own dedicated cloud platform that contains only your data, configuration, and integrations with other systems. This gives you more control over usage, settings, and customer-specific extensions. There is a trade-off: it is more complex to manage, and the costs are higher. Larger enterprises often accept that in their business case because it provides more control over usage and product evolution.
Mid-sized and smaller customers typically choose a multi-tenant environment such as HelloID. In a multi-tenant solution, customers share a single IAM cloud platform that the service provider centrally manages and continues to develop. Each customer is a tenant and has the same functionality, updates, and new features. All customer data remains strictly separated, and each tenant has its own settings and integrations. The service provider handles redundancy, capacity planning, and performance management, so you do not need to manage the technical platform.

Multi-Cloud IAM Solution

We increasingly see organizations operating in multi-cloud environments, using multiple cloud providers such as Microsoft Azure and Google Cloud, alongside SaaS applications that run on their own cloud infrastructure. To maintain control, organizations need to harmonize access across these environments and manage them in a consistent, centralized way. IAM plays an important role in this.

By managing all accounts and permissions from a single environment, you ensure that the same rules and processes apply across your entire multi-cloud environment. You establish uniform access governance across your multi-cloud with, among other things:

Centralized Identity Management: You have one platform to manage accounts and permissions across multiple cloud environments.
Uniform Policies: Access to applications and data is governed by the same policies, regardless of the cloud provider.
Integration: Your IAM provides seamless connectivity with multiple cloud environments. With a platform like HelloID, you can also connect on-premises systems, which effectively delivers a hybrid solution.
Compliance and Auditing: With uniform management of your accounts and permissions, you always have an organization-wide view of all permission settings, all changes made, and who approved them.

By "multi-cloud IAM," we do not mean an IAM platform that is hosted on multiple cloud platforms; rather, it is an IAM environment that seamlessly manages accounts and permissions for software across multiple cloud providers. HelloID offers an extensive set of connectors that make it easy to connect applications in different cloud environments. This flexibility enables customers to execute their multi-cloud strategy efficiently.

Hybrid IAM Solution

An IAM platform provides similar value in hybrid organizations. Hybrid environments include both cloud services and on-premises systems. For example, you use SaaS for office productivity, but your ERP application still runs on your own server. Therefore, a hybrid IAM solution provides centralized, uniform identity management and seamless integration for both on-premises and cloud systems.

Want to learn more about the HelloID cloud IAM solution?

Explore our HelloID platform to see how to use this cloud IAM solution to manage accounts and permissions across multiple cloud and on-premises systems.