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Home Technology Infrastructure & Platforms

Subscription services to drive IAM adoption

FutureCIO Editors by FutureCIO Editors
July 5, 2022
Photo by cottonbro from Pexels: https://www.pexels.com/photo/hand-holding-a-key-with-a-usb-flash-drive-5474298/

Photo by cottonbro from Pexels: https://www.pexels.com/photo/hand-holding-a-key-with-a-usb-flash-drive-5474298/

Juniper Research forecasts that global spending on identity & access management solutions will rise from $16 billion in 2022 to $26 billion by 2027, representing an absolute growth of 62% over the next 5 years.

Identity & access management includes B2B security solutions that enable the monitoring and management of users’ access to an enterprise’s applications, databases and IT services.

Key Drivers: The increasing demand for identity & access management will originate from small businesses which, until the proliferation of the subscription model, were often unable to afford comprehensive suites of identity & access management services.

SMEs for revenue growth

The new research found that 94% of global identity & access management spend will be attributable to the subscription model by 2027, rising from 60% in 2022. It anticipates that the use of the subscription model will become increasingly popular amongst small businesses, by minimising the initial acquisition cost of identity & access management services.

The subscription model will enable service vendors to provide regular software updates that continually improve the value proposition of their platforms. The research found that annual spending on identity & access management solutions by small businesses via subscription models will surpass $370 million globally by 2027, up from $178 million in 2022.

Identity & access management vendors must capitalise on this growth by developing flexible pricing models that appeal to the small business sector.

Key opportunity for software vendors

Furthermore, as enterprise adoption of cloud computing infrastructure increases, so too will the demand for effective cybersecurity policies to prevent revenue losses. The report anticipates that identity & access management solutions will represent a significant cornerstone of corporate cybersecurity initiatives, as firms seek to meet increasingly stringent regulatory compliances, driving the market growth.

Related:  The Forrester Wave: Customer Identity and Access Management, Q4 2020
Tags: IAMidentity access managementJuniper Research
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