# IAM vs. PAM: 4 key differences and how to choose

Author: [Michael Hendricks](https://www.rippling.com/blog/author/michael-hendricks)
Read time: 11MIN  
Updated: Apr 7, 2025

## In this article
1. [What is IAM?](https://www.rippling.com/blog/iam-vs-pam#what-is-iam?)
2. [What is PAM?](https://www.rippling.com/blog/iam-vs-pam#what-is-pam?)
3. [IAM vs. PAM: Key differences](https://www.rippling.com/blog/iam-vs-pam#iam-vs.-pam:-key-differences)
4. [IAM vs. PAM: Use cases](https://www.rippling.com/blog/iam-vs-pam#iam-vs.-pam:-use-cases)
5. [PAM vs. IAM: Pros and cons](https://www.rippling.com/blog/iam-vs-pam#pam-vs.-iam:-pros-and-cons)
6. [Rippling IT: Enhanced access management for your business](https://www.rippling.com/blog/iam-vs-pam#rippling-it:-enhanced-access-management-for-your-business)
7. [FAQs on IAM vs. PAM](https://www.rippling.com/blog/iam-vs-pam#faqs-on-iam-vs.-pam)

When it comes to protecting your company's sensitive data and critical systems, access management is a top priority. It's the process of ensuring that the right people have access to the right resources at the right time. Two key components of access management are identity and access management (IAM) and privileged access management (PAM).

At first glance, IAM and PAM might seem like two sides of the same coin. They both deal with [access control](https://www.rippling.com/glossary/access-control), but they each tackle it in very different ways. While they do share some similarities, IAM and PAM serve different purposes and address distinct security needs within your organization.

## What is IAM?
IAM, an acronym for [identity and access management](https://www.rippling.com/glossary/iam), is a framework designed to manage and control user access across your organization. It's all about making sure that employees have access to the tools and resources they need to do their jobs, while keeping unauthorized users out.

IAM systems use a variety of methods (which we’ll see shortly) to verify user identities and grant access through mechanisms like role-based access control (RBAC) and attribute-based access control (ABAC), along with based on predefined policies. For example, when you log into your work email or access a company application, IAM is working behind the scenes to confirm that you are who you say you are and that you have the necessary permissions to access those resources.

## What is PAM?
PAM focuses specifically on securing and monitoring privileged accounts, operating on the principle of least privilege to ensure users only have access to what they need for their roles.

Privileged accounts are those with elevated permissions and access to critical systems and sensitive data. We're talking about administrator accounts, executive-level access, and other high-level user accounts that have the power to make significant changes to your systems and access your company's most valuable information.

PAM solutions provide an additional layer of security for these high-risk accounts. They keep a close eye on privileged account activity, monitoring for any suspicious behavior or potential cybersecurity breaches.

## IAM vs. PAM: Key differences
So, what sets IAM and PAM apart? Let's break it down:

### 1. Scope of access
IAM has a broad scope, managing access for all users across various applications and systems. Its primary focus is ensuring that employees have access to the tools and resources they need.

On the other hand, PAM has a more targeted scope, specifically focusing on privileged accounts with elevated access to critical and sensitive data.

### 2. Level of control
[IAM solutions](https://www.rippling.com/blog/best-access-management-software) provides a foundational level of access control by verifying user digital identities and granting access based on predefined policies.

PAM offers more granular control and visibility over privileged accounts, providing detailed audit trails and real-time alerts for any suspicious behavior.

### 3. Risk mitigation
Both IAM and PAM contribute to risk mitigation, but they address different types of threats. IAM helps prevent unauthorized access by ensuring that only verified users can access your systems and applications.

PAM focuses on mitigating risks associated with insider threats and privileged account abuse.

### 4. Compliance
Both IAM and PAM play crucial roles in meeting compliance requirements, especially when it comes to handling sensitive data.

| **Aspect** | **IAM** | **PAM** |
| --- | --- | --- |
| Purpose | Manages and controls user access across an organization | Secures and monitors privileged accounts with elevated permissions |
| Scope | Broad, covering all users and applications | Narrow, focusing on high-risk privileged accounts |
| Control | Verifies user identities and grants access based on policies | Offers granular control and monitoring of privileged account activity |
| Risk Mitigation | Prevents unauthorized access and reduces external threats | Mitigates insider threats and privileged account abuse |
| Compliance | Contributes to meeting compliance requirements | Plays a significant role in demonstrating compliance for sensitive data and systems |

## IAM vs. PAM: Use cases
### IAM use cases
1. **Employee onboarding and offboarding:** Automate the [provisioning and deprovisioning](https://www.rippling.com/glossary/automated-provisioning) of user accounts.
2. **Single sign-on (SSO):** Enable access to multiple applications with a [single set of credentials](https://www.rippling.com/glossary/sso).
3. **Multi-factor authentication (MFA):** Adds an extra layer of security, ensuring that even if an attacker manages to guess a user's password, they still can't access the systems without additional verification.
4. **Role-based access control (RBAC):** Enables organizations to define and [manage user roles](https://www.rippling.com/blog/role-based-access-control).
5. **Identity governance and compliance:** Provide comprehensive [identity governance capabilities](https://www.rippling.com/blog/identity-governance-and-administration).

### PAM use cases
1. **Securing administrative accounts:** Ensure that only authorized users can access administrative accounts.
2. **Compliance with industry regulations:** Provide detailed audit trails and session recording capabilities for privileged account activity.
3. **Preventing privilege escalation attacks:** Monitor and control privileged account activity to prevent attackers from gaining elevated privileges.
4. **Managing third-party access:** Provide a secure way to manage and monitor access for third-party vendors and contractors.
5. **Secure remote access:** Ensure that remote privileged users access your systems safely and securely.

## PAM vs. IAM: Pros and cons
### IAM pros
- **Streamlines user access**: Simplifies the process of granting and revoking access to company resources.
- **Improves user experience**: Reduces password fatigue with single sign-on.
- **Enhances security**: Helps prevent unauthorized access.

### IAM cons
- **Limited visibility**: May lack the same level of control over privileged accounts as PAM.
- **Complexity**: Can be time-consuming to implement across multiple systems.
- **Ongoing maintenance**: Requires regular updates to access policies.

### PAM pros
- **Granular control**: Allows detailed monitoring of privileged accounts.
- **Enhanced security**: Reduces risks of insider threats.
- **Compliance**: Helps meet compliance requirements.

### PAM cons
- **Higher cost**: Can be more expensive than IAM solutions.
- **Complexity**: Requires specialized knowledge and resources.
- **User resistance**: Users may resist additional security measures.

## FAQs on IAM vs. PAM
1. **What is the difference between IAM, PAM, and DAM?**
   - IAM focuses on managing identities and access. PAM secures privileged accounts. DAM monitors database activities.
2. **Do organizations need both IAM and PAM?**
   - Many organizations benefit from implementing both solutions to provide a comprehensive security posture.
3. **What types of businesses benefit most from PAM solutions?**
   - Organizations that handle sensitive data, such as financial institutions and healthcare providers, benefit greatly from PAM.
4. **What are some examples of IAM and PAM tools?**
   - Examples include Rippling IT, Okta, Azure Active Directory, and OneLogin.