IDaaS (Identity as a Service): what it is, how it works, and its role in modern security

Identity as the new security perimeter

The massive adoption of cloud environments, SaaS applications, and remote work models has completely transformed the way organizations manage security.

The new control point is not the infrastructure. It is the identity.

The data confirms it: credential abuse accounts for 22% of confirmed security incidents, being the main entry vector along with vulnerability exploitation (Verizon DBIR 2025). 74% of data breaches involve the human element, error, social engineering, or misuse of credentials (gartner.com).

In this context, IDaaS (Identity as a Service) emerges as a key solution to manage identities in distributed environments. But its true value does not lie only in moving identity to the cloud, but in how it integrates within a broader ecosystem that includes IAM, PAM, IGA, and ITDR.

What is IDaaS (Identity as a Service)?

IDaaS is a model that allows managing identities, authentication, and access from a centralized cloud platform. Unlike traditional directory systems, IDaaS changes the entire operational logic.

Instead of depending on rigid on-premise infrastructures, organizations can manage users, access, and policies dynamically, scalably, and accessible from any location. This makes it possible to respond quickly to organizational changes, integrate new applications, and adapt to hybrid environments without friction.

The market reflects this trend: the global IDaaS market was valued at approximately $9 billion in 2024 and is projected to reach $42.2 billion by 2031, with a CAGR of 24.69% (mesh.security).

However, this flexibility introduces a new challenge: the more centralized the identity is, the more critical it becomes.

IDaaS within the identity ecosystem: IAM, PAM, IGA, and ITDR

To truly understand IDaaS, it is necessary to place it within the set of disciplines that make up modern identity security:

IAM (Identity & Access Management) acts as the operational foundation, allowing users to access the resources they need efficiently and in a controlled manner.

PAM (Privileged Access Management) introduces strict controls over accounts with elevated privileges, reducing the risk of abuse or improper access to critical systems.

IGA (Identity Governance & Administration) provides governance, ensuring that each identity and each permission are aligned with internal policies and regulatory requirements such as NIS2, DORA, or ENS.

ITDR (Identity Threat Detection and Response) introduces intelligence over behavior, detecting anomalies and responding to threats in real time.

In this ecosystem,IDaaS is positioned as the layer that enables and connects everything in cloud environments. It does not replace IAM, PAM, IGA, or ITDR, it enhances them, allowing them to function in an integrated way in a distributed environment where identity is the only constant element.

From authentication to continuous control

One of the most common mistakes when adopting IDaaS is to think that centralized authentication is sufficient.

Functionalities such as Single Sign-On (SSO) or multi-factor authentication (MFA) significantly improve security and user experience. However, they also concentrate risk: if an identity is compromised, the attacker can access multiple systems simultaneously.

This is where the rest of the ecosystem comes into play:

• IAM manages access.
• PAM controls privileges.
• IGA ensures that permissions are correct.
• ITDR detects anomalous behaviors.
• IDaaS acts as the entry point.

But the real control happens after authentication.

Real incidents: when cloud identity becomes the target

The criticality of identity as a service has been made evident in several reference incidents.

Okta (2022). The compromise of this identity provider generated a chain impact on multiple organizations dependent on its services. The incident demonstrated that when identity is centralized, its protection becomes a critical issue at a global scale. (Source: cronup)

Snowflake (2024). 165 organizations worldwide were attacked using stolen credentials originating from infostealer infections. The affected accounts did not have MFA enabled, which meant that access only required valid username and password.

Change Healthcare (2024). The attacker used stolen credentials to access the company’s Citrix remote access service, which did not have multi-factor authentication enabled. The ransom payment was approximately $22 million.

These cases have a common denominator: complex technical vulnerabilities were not exploited. Valid credentials were used over poorly controlled access.

Real benefits of adopting IDaaS

Despite the risks, the value of IDaaS is unquestionable:

• It simplifies identity management in hybrid and multicloud environments.
• It reduces dependence on costly and rigid on-premise infrastructure.
• It improves user experience with SSO and adaptive authentication.
• It facilitates compliance with NIS2, DORA, GDPR, and ENS through traceability and access control.
• It allows integrating new applications and scaling without friction.

These benefits only fully materialize when IDaaS is integrated within a broader security strategy.

Limitations: when identity becomes a single point of failure

The main risk of IDaaS is its own strength: centralization.

When the entire identity of the organization depends on a single service, any failure, vulnerability, or misconfiguration can have a massive impact. In addition, many organizations assume that delegating identity to the cloud also implies delegating security. This is a critical mistake.

The provider manages the platform. The organization remains responsible for its use.

Without additional controls over how that access materializes, cloud identity can become the most effective attack vector available.

How Cosmikal complements IDaaS: from access to controlled execution

While IDaaS manages who can access, Cosmikal controls how that access materializes.

Endurance introduces a fundamental change in the security architecture: the user does not access applications or critical systems directly, but through a secure remote workspace (RSW) where every interaction is supervised, recorded, and audited in real time.

This approach makes it possible to:

• Eliminate direct access to critical systems.
• Reduce the risk of lateral movement.
• Limit the impact of compromised credentials.
• Guarantee full traceability of each session.
• Comply with ENS, NIS2, and DORA requirements.

In other words: it transforms identity into a real control point, not just an authentication mechanism.

Practical case: a user accesses multiple critical applications through IDaaS. In a traditional model, once authenticated, they interact freely with systems — if their identity is compromised, the attacker inherits that full access.

With Endurance, access is channeled through a secure remote workspace. The user authenticates normally, but their interaction with systems occurs in an environment completely isolated from the outside. This eliminates direct contact between the user and the organization’s assets, preventing unauthorized manipulation or download of information. Each session is fully audited and can be video recorded, providing total traceability of every action performed.

Result: is an access model where identity authenticates, but Endurance controls, records, and protects everything that happens afterward.

The future of identity: from service to control

The evolution of IDaaS points toward increasingly distributed, intelligent, and automated models: passwordless authentication, decentralized identities, and integration with artificial intelligence for real-time anomaly detection.

But as dependence on identity increases, so does the need to control it with greater precision.

The future will not be only identity-as-a-service. It will be identity-as-a-control.

Conclusion

IDaaS represents a key step in the evolution of identity management toward cloud-based models. It allows adaptation to modern environments, improves user experience, and simplifies operations.

However, identity must not only be managed: it must be governed, monitored, and controlled.

Only when IDaaS is integrated with IAM, PAM, IGA, and ITDR, and complemented with controlled access architectures such as Endurance, is it possible to build a truly resilient security model.

In a world where logging in is the new attack vector, protecting identity is no longer enough. It is necessary to understand it, monitor it, and control it at all times.