IAM vs CIAM - What’s the Difference?

Instasafe -

Organisations have started relying on identity and access management (IAM) systems to safeguard their data, streamline internal processes and improve user experience. 

With the increase in digital interactions with customers, there has been an increase in the demand for safeguarding customer information. This is where Customer Identity and Access Management (CIAM) comes into play. Understanding the difference between the two is very important. 

In this blog, we will explore IAM vs CIAM, covering both the systems and how to make the right choice for your company’s needs. 

What is IAM?

IAM or Identity and Access Management, is a framework organisations use to handle the data of their employees, contractors and other internal users. IAM systems control access to sensitive files and applications, allowing access to only authorised personnel(s). 

Using IAM, organisations implement strict user authentication and authorisation policies to allow access as per their roles. 

This setup is essential for regulatory compliance, data security, user lifecycle management and exercising control over IT resources. 

IAM helps organisations secure their data using authentication solutions like Single-Sign-On (SSO) and Multi-Factor Authentication (MFA) to align with their internal policies and regulatory requirements. 

What is CIAM?

Customer Identity and Access Management (CIAM) is a framework that helps manage customer identities and data by enhancing security and personalising user experience for people outside the organisation. 

CIAM solutions safeguard customer data and handle user interaction for a seamless experience at various digital touchpoints. Unlike IAM, CIAM focuses on user-centric features related to customer interaction, such as social media login and customer preference tracking. 

CIAM prioritises regulatory compliance including privacy laws such as GDPR and CCPA. Hence, CIAM provides a secure and seamless way for customer engagement with a brand, through smooth access and personalised interaction. 

Difference Between IAM And CIA

Factor

IAM

CIAM

User Base

For employees, contractors and internal users

For external customers and users

Primary Focus

Security and control over access to internal systems

Securing customer data and improving user experience

Features

Employs SSO, MFA, user lifecycle management, role-based access, etc., in its framework

Employs SSO, MFA and consent management in its framework to comply with privacy regulations

Data Privacy

Works to protect internal data

Works to protect customer data, ensuring compliance with data privacy laws

Implementation

Part of the internal IT structure of an organisation

Part of social media and other public platforms

Analytics 

Tracks login and access

Track customer behaviour, preferences, and engagement with a brand

Scalability

Limited scalability, mostly enough to cater for the employees of an organisation

High scalability; catering to wide consumer demography

IAM vs CIAM: Factors to Consider Before Choosing

User Profile

It is important to determine the user base you want to cater to. IAM mostly helps organisations in securing the data of employees, contractors and other internal workers. 

Whereas CIAM, as the name suggests works to secure the data of customers without compromising on the user experience. 

Scalability and Performance

Another important factor to consider is the scalability and performance of your management system. Both systems are designed to provide strong security and efficient management to small and medium-sized enterprises. 

IAM is designed for the internal management of organisations, and can only support a limited data of a few thousand. 

CIAM on the other hand, can scale higher and can manage the data of millions of users without dampening the user experience. 

User Experience

The user experience is an important factor for any management system. With IAM, since it is very IT-driven and focuses on securing the data and granting access to internal employees, the interface may not be as user-friendly 

CIAM systems, on the other hand, customise their system as per the personalised experience of their customers. They offer features like self-service capabilities, social media logins and more. 

Data Attribution and Customisation

Both IAM and CIAM work to secure user data by complying with privacy laws and regulations. The difference, however, lies in their capability to customise their systems based on user experience. 

IAM offers limited customisation and may not be able to support data attributions beyond a certain extent. CIAM on the other hand, can support wide data attribution and customise as per the preferences of the user. 

Analytics And Insights

An important factor to consider is the analytical and insightful capabilities of the management system you want. Typically, IAM offers analytics and insights for improving internal security for the company. 

CIAM handles data on a wide variety of users with different tastes and preferences. Hence, they provide robust analytics and insights to bring you a system that modifies itself to support user preferences while securing data and providing a seamless experience. 

IAM Features to Look For

  1. Single Sign-On (SSO): Users can access multiple applications by signing into the IAM system just once. 
  2. Role-Based Access Control: IAM develops a thorough understanding of a user’s role in the organisation and then provides access based on that. This is done to enhance data security. 
  3. Multi-Factor Authentication (MFA): IAM uses this feature to add a layer of authentication to enhance security. 
  4. Auditing and Reporting: Keeps track of all the logins, provides a detailed report on the same and notifies regarding compliance and security audits. 

CIAM Features to Look For

  1. Customises the User’s Journey: With CIAM, you can orchestrate the user’s journey on your brand’s website from login to exit. You curate this by recording the user’s preferences regarding how they want to access the website. 

Based on that you can find secure ways to save the user’s data without compromising on their experience or the brand value. 

  1. Delegation and Relations Management: CIAM provides delegation to users and management to business partners to streamline control and enable flexibility in registration. Granular delegation models now allow simple, hierarchical or flat external user management. 
  2. External Authorisation: Since external users visit a brand’s platform with their multi-faceted personalities, your CIAM systems should offer customers and delegated administrators to allow preferences to be stored in a unified profile.
  3. Privacy Compliance: Manages customer data to comply with privacy regulations such as GDPR, CCPA and other similar regulations. 

Similarity Between IAM and CIAM

  • IAM and CIAM are both management systems that allow organisations to manage user data while providing robust security. 
  • IAM mainly focuses on an organisation's internal users and caters to a much-limited user base compared to CIAM, which handles the data of millions of external users. 
  • Both systems provide essential features such as SSO and MFA to maintain and authenticate. This is done to keep your data secure and prevent it from any breach. 
  • Both systems have to qualify for regulatory standards such as HIPAA and GDPR for IAM and CIAM, respectively. 
  • IAM  and CIAM also emphasise data privacy, provide strong authentication protocols and depend on user behaviour to detect any kind of system breach. 
  • Even though they serve different user bases, they share the same goals in terms of securing data, privacy and user authentication. 

Conclusion

Both IAM and CIAM are essential in their own way since they cater to different audiences despite providing overlapping services. When it comes to IAM vs CIAM, IAM is more internal user-centric, and CIAM caters to a wide external audience with a multitude of preferences. 

They both provide frameworks under which you can secure data and ensure privacy through the use of multiple authentication processes to prevent data breaches. 

At InstaSafe, we offer security solutions that offer authentication capabilities to ensure users undergo a robust verification process to prevent unauthorised access. 

For example, our Multi-Factor Authentication offers several authentication methods like biometrics, facial authentication and push notifications for ease of use without compromising on security. 

Frequently Asked Questions (FAQs)

  1. What is the difference between IdP and CIAM?

The main difference between IdP and CIAM is that IdP itself is a part of CIAM. IdP or Identity Provider takes care of user authentication and identities, whereas CIAM is the overall framework. 

  1. What is the difference between IAM and IDAM?

The difference between IAM (Identity and Access Management) and IDAM (Identity, Data, and Access Management) is that while IAM manages user identities and access, IDAM takes a more detailed route including data management to secure digital assets.

  1. What is the difference between IAM and Active Directory?

An active Directory is where all user information is stored for you to retrieve it when required. IAM makes use of this stored data to automate the business and provide a report on the logins to your system.