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5/2/2025 ยท Charnita Fance

IdP is Essential: How the Lack of an Identity Provider Hurts Your Business

Most organizations manage a wide range of applications and systems, each requiring user authentication. An Identity Provider (IdP) is a service that manages and verifies digital identities. Without a centralized one, this leads to fragmented identity management, where each application operates independently. This creates security vulnerabilities, compliance challenges, and a poor user experience. A centralized IdP, utilizing Single Sign-On (SSO), addresses these issues by providing a unified approach to managing digital identities and access rights.

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Security Vulnerabilities and Risks

Fragmented identity management increases the attack surface. Each application's independent identity management creates potential entry points for attackers, making it difficult to enforce consistent security policies. Attackers can exploit weaker security measures in some applications to gain access to all systems.

Local identities, tied to specific devices or applications, often lack strict security measures, including strong password policies and Multi-Factor Authentication (MFA). This, combined with the risks of orphaned accounts from former employees and the use of unsecured personal email for work access, creates significant security gaps.

Non-human identities (NHIs), such as service accounts and API keys, are frequently overlooked despite their prevalence. These NHIs can vastly outnumber human user accounts, making manual tracking and security management impossible. The SolarWinds supply chain attack in 2020 demonstrated the severe impact of compromised credentials due to inadequate NHI management, highlighting the critical need for robust, centralized NHI solutions.

Furthermore, users required to remember numerous passwords frequently resort to weak or reused passwords, increasing the risk of security breaches. A centralized IdP with SSO mitigates these risks by reducing the number of passwords and improving visibility for detecting insider threats.

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Compliance and Operational Challenges

Organizations face significant compliance challenges with fragmented systems. Regulations like GDPR, HIPAA, and PCI DSS mandate data minimization, strict access controls, and strong security measures, which are difficult to implement consistently across independent applications. Fragmented systems hinder thorough access audits and make it challenging to demonstrate regulatory compliance.

Additionally, fragmented identity management undermines the principle of Segregation of Duties (SOD), increasing the risk of "toxic combinations" where a single user gains excessive control, potentially leading to fraud.

The absence of a centralized IdP also results in significant IT inefficiencies and operational overhead. Password resets consume valuable resources and reduce productivity. Manual account lifecycle management is time-consuming and error-prone, leading to security risks. A centralized IdP automates these processes, streamlining operations and reducing costs.

Productivity and User Experience

Fragmented identity management significantly hinders user productivity. The need to remember numerous complex passwords leads to password fatigue and insecure practices. Users waste time resetting passwords or seeking IT support, disrupting workflows. Beyond that, complex access procedures can drive the adoption of Shadow IT, where employees use unauthorized and potentially less secure tools.

A centralized IdP with SSO provides seamless access to authorized resources, streamlining the login process and minimizing Shadow IT.

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The Benefits of a Centralized IdP: Security, Efficiency, and Growth

Implementing a centralized IdP provides a unified solution that strengthens security, simplifies compliance, enhances user experience, and optimizes IT operations. By establishing a single point of control, organizations can consistently enforce aggressive and reliable security policies and gain improved visibility into user access.

A centralized IdP also simplifies compliance efforts, automates account lifecycle management, and reduces password reset requests. Modern IdPs are designed to be adaptable, seamlessly integrating with both legacy and cloud applications, ensuring secure growth.

Centralized Identity: A Strategic Imperative

The lack of a centralized IdP exposes organizations to significant security risks and operational inefficiencies. Embracing centralized identity management is a strategic investment that ensures a more secure and efficient future. Organizations should prioritize the adoption of a trusted, comprehensive, centralized IdP strategy, thoroughly assessing needs, evaluating solutions, planning integration, and prioritizing a user-friendly experience.

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