IDM exists because businesses need a way to easily create and manage users (aka, identities) across their entire software portfolio. IT administrators need to give users single sign-on (SSO) capability across the organization's entire app library, but that's only part of the problem. Controlling the depth of access in SaaS apps is just as crucial for on-premises apps and even local network resources. So not just who gets access to the app, but precisely what they can access once they're using it. This can be critical in many business apps, which means it's also critical to manage those roles across different apps and combine basic authentication with more advanced technology, like multi-factor authentication (MFA). MFA has become almost ubiquitous for those using cloud service software because it requires more than just a single step, like simply entering a user name and password. MFA also requires additional steps, such as a physical token of some kind (a smart card or USB stick, for example) or a biometric measure (a fingerprint scan, for instance). The big hurdle that IDM systems address is managing these new cloud service identities along with existing authentication measures most companies already have in place. These are typically centered around Identity Providers (IDPs), such as Microsoft Active Directory (AD) or human resources (HR) software. IDMs need to incorporate data from all identity repositories and then combine those records to manage authentication across every software touchpoint. In many cases, identity information may be sourced from multiple repositories. This requires a way to manage identities in different systems, synchronize information among these systems, and provide a single source of truth. The pandemic has undoubtedly made this a top-of-mind problem, but it was a problem even before COVID-19 since the Internet of Things (IoT) had such a sudden growth spurt. An ever-broader array of IoT devices means more traffic and more requests for authorized access in both directions. That's a complex problem to solve in the background. It is also why identity and security are driving IoT growth, as shown in this chart from the market research firm, Statista. Size of IoT Application Market, 2020 (Billions Euros) To make all of this happen, admins need the ability to manage users in a fast-changing environment, preferably without having to manually perform actions to a user's group membership properties in Microsoft AD. Manually adjusting permissions, access, and control properties across dozens, hundreds, or even thousands of users every time a new SaaS service shows up is cumbersome. Automated scripting can help, but not enough. Cloud IDM systems have become the standard solution for this headache, and it's made them a core component of many IT pro toolsets. As a baseline, a good IDM system clearly organizes your user data. It should also handle hybrid SSO and adapt to additional security layers, especially token or biometric MFA. Other criteria you should consider include: customization capabilities, the size and method of the system's third-party integration library, whether it'll meet your compliance needs, and several other factors we'll outline below.