What Is Identity as a Service (IDaaS)?

Gilad David Maayan
Published 06/12/2023
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What Is Identity as a ServiceIdentity as a Service (IDaaS) is a cloud-based service model that delivers identity and access management (IAM) services to organizations. IDaaS helps organizations to manage user authentication and authorization for their cloud applications and services.

In an IDaaS model, the identity provider (IdP) handles user authentication and authorization, and users can access multiple services and applications with a single set of login credentials. This simplifies user management and reduces the need for multiple login credentials.

IDaaS typically includes features such as user provisioning, single sign-on (SSO), multi-factor authentication (MFA), and access control. User provisioning allows administrators to create, manage, and delete user accounts, while SSO enables users to log in once and access multiple applications without having to enter their credentials repeatedly. MFA provides an additional layer of security by requiring users to provide multiple forms of authentication, such as a password and a biometric factor like a fingerprint. Access control allows administrators to control which users have access to specific applications or data.

IDaaS is becoming increasingly popular as more organizations move their applications and data to the cloud. It provides a centralized solution for identity management that simplifies administration and enhances security.

Why Is Cloud-Based Identity Security Critical?

Ensuring identity security is essential for organizations that operate in today’s digital landscape. Using a cloud-based IAM solution can offer several benefits, including:

  • Efficient service delivery: They enable organizations to manage user identities and access to resources more efficiently. It simplifies user administration, reduces administrative costs, and enhances user experience by providing a single sign-on for multiple applications.
  • Protection against external and internal threats: Identity security is critical in protecting against external and internal threats. Cloud IAM solutions offer robust security features such as multi-factor authentication, access controls, and continuous monitoring, helping to prevent unauthorized access and data breaches.
  • Supporting privacy and security compliance: They help organizations comply with privacy and security regulations such as GDPR, HIPAA, and PCI-DSS. They provide tools for managing access, user permissions, and audit trails, helping organizations meet compliance requirements.



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How Does IDaaS Work?

IDaaS works by providing a unified identity system that enables users to authenticate and access multiple applications and services with a single set of login credentials. The following steps outline how IDaaS works:

  1. The user attempts to access an application or service protected by an API gateway.
  2. The API gateway forwards the user’s request to the IDaaS system.
  3. The IDaaS system verifies the user’s identity based on its user directory, which contains user account information such as usernames and passwords.
  4. The IDaaS system determines the user’s access rights based on their identity and the permissions assigned to them.
  5. If the user has the authorization to access the requested resource, the IDaaS system generates a security token that contains information about the user’s identity and permissions.
  6. The IDaaS system sends the security token back to the API gateway, which uses it to grant access to the requested resource.
  7. The API gateway records the user’s interactions with the API, including access requests, responses, and any errors or exceptions.

IDaaS Core Features for Enterprise

There are several types of authentication that are typically supported by an enterprise IDaaS solution.

Single Sign-On (SSO)

SSO allows users to authenticate once and access multiple applications without having to log in to each application separately. This feature improves user experience and simplifies user management for administrators.

Multi-Factor Authentication (MFA)

MFA provides an additional layer of security by requiring users to provide multiple forms of authentication, such as a password and a biometric factor like a fingerprint or facial recognition. This feature helps prevent unauthorized access and data breaches.

Biometric Authentication

Biometric authentication uses a user’s unique physical characteristics, such as fingerprints, facial recognition, or iris scans, to verify their identity. This feature provides a high level of security and convenience for users, as they do not need to remember passwords or carry hardware tokens.

Passwordless Authentication

Passwordless authentication uses methods such as biometric authentication or one-time passcodes (OTPs) to provide secure authentication without the use of passwords. This feature eliminates the need for users to remember complex passwords and reduces the risk of password-related security breaches.

9 Best Practices for Successful IDaaS Implemetation

Implementing Identity as a Service (IDaaS) in your organization requires careful planning and adherence to best practices to ensure security, efficiency, and user satisfaction. Here are some best practices to follow when implementing IDaaS:

  1. Establish clear objectives: Define your organization’s identity management goals and requirements to help guide your IDaaS implementation and ensure alignment with your overall IT strategy.
  2. Develop a comprehensive IAM strategy: Incorporate IDaaS into your broader Identity and Access Management (IAM) strategy, which should address user provisioning, authentication, authorization, and monitoring.
  3. Prioritize security: Implement robust security measures such as Multi-Factor Authentication (MFA), Single Sign-On (SSO), adaptive authentication, and encryption to protect sensitive data and user credentials.
  4. Centralized identity management: Use IDaaS to centralize the management of user identities and access controls across your entire IT ecosystem, including cloud-based, on-premises, and hybrid environments.
  5. Integrate with existing systems: Ensure your IDaaS solution integrates seamlessly with your existing applications, directories, and infrastructure to provide a consistent user experience and simplify management.
  6. Enforce the principle of least privilege: Grant users only the access they need to perform their job duties and minimize the potential for unauthorized access or data breaches.
  7. Automate user lifecycle management: Streamline user provisioning, deprovisioning, and access modifications by automating these processes, ensuring that access rights are always up-to-date and accurate.
  8. Monitor and audit access: Regularly monitor and audit user access to identify suspicious activity, detect potential security breaches, and ensure compliance with internal policies and external regulations.
  9. Educate users: Train your users on the importance of identity and access management, proper password hygiene, and how to use the IDaaS solution to reduce the risk of human error and insider threats.


In today’s digital age, managing user identities and access to resources is a critical component of any organization’s security posture. Identity as a Service (IDaaS) provides a cloud-based solution that simplifies user management, enhances security, and improves user experience.

IDaaS solutions typically include features such as single sign-on (SSO), multi-factor authentication (MFA), biometric authentication, and passwordless authentication. Implementing an IDaaS solution requires careful planning and execution, following best practices such as developing a comprehensive IAM strategy, prioritizing security, centralizing identity management, and educating users.

With the right implementation strategy and best practices, IDaaS can help organizations meet their security and compliance requirements while improving the user experience.

About the Author

Gilad David Maayan is a technology writer who has worked with over 150 technology companies including SAP, Imperva, Samsung NEXT, NetApp and Check Point, producing technical and thought leadership content that elucidates technical solutions for developers and IT leadership. Today he heads Agile SEO, the leading marketing agency in the technology industry. Connect with Gilad on Linkedin.


Disclaimer: The author is completely responsible for the content of this article. The opinions expressed are their own and do not represent IEEE’s position nor that of the Computer Society nor its Leadership.