A study by Juniper Research has predicted global expenditure in identity and access management could rise to $26 billion by 2027, due to subscription model growth.
The new research identifies a shift in the IAM market moving away from term licenses to more SMEs embracing the Software as a Service (SaaS) model which has increased benefits including financial reliability, predictability of cash flows, and reasonable initial service costs.
As a result of this shift, service vendors will see their addressable market increase significantly while keeping the initial acquisition cost of identity and access management services reasonably low. It is expected that the appetite for IAM services amongst small businesses will also prompt service vendors to offer more, for example regular software updates and advanced cybersecurity features to continually increase the value of platforms.
If Identity and Access Management vendors want to continue seeing this growth and protect revenue, they will have to set out long-term flexible pricing tariffs that appeal to the small business sector.
IAM encompasses a range of security and foundational IT infrastructures for business platforms to enable the monitoring and management of consumer access to an enterprise’s assets, applications, databases and services.
The report predicts that the future of identity and access management solutions will change the face of many small enterprises, enhancing their IAM offering, driving market growth and will comply with regulation.
Furthermore, the report describes the ability of service vendors “to shift development from a waterfall approach to an agile methodology in software development” from subscription model growth.
Ultimately, subscription models eliminate the chance of small businesses being excluded from the identity and access management market and allow service providers to step up faster deployment and bespoke features to support scaled-up businesses.
The annual spend on IAM solutions by small businesses through subscription models is expected to surpass $370 million by 2027, with $5 billion spent in the U.S.
The four main components of IAM include authentication, authorisation, user management, and central user repository to facilitate access to a verified user in real-time, every-time.