IAM vs PAM: What’s the Difference and Which One Do You Need?

In business technology, controlling access is key. For companies store everything from employee records and customer data to financial information digitally. If access to these systems is not managed properly, it can lead to security breaches of the worst sort.

That’s where IAM (Identity and Access Management) and PAM (Privileged Access Management) make a whole lot of difference. While the two terms might end up confusing most of you, they serve entirely different roles when looked at in depth.

Let’s thus explore IAM vs PAM and while at it, decipher which one your organization might need.

What is Identity and Access Management?

Identity and Access Management (IAM) is a technology framework that controls who can use what in a company. It makes sure employees, contractors, or partners only get access to apps and data they need for their jobs.

IAM’s main work is to check who you are and give the right permissions to stop unauthorized access. It handles everything, from creating accounts when you join, changing access if your role changes, to finally removing it when you leave the organisation.

Some of the key elements of IAM are…

• Identity management: Creating and maintaining user accounts with details such as name, department, and permissions.
• Authentication: Verifying users when they log in, often through passwords, biometrics, or multi-factor authentication.
• Authorization: Deciding what each user can do or see once they get into the system based on their role.
• User lifecycle management: Updating or revoking access as employees join, move within, or leave the organization.
• Audit & reporting: Tracking user activity to identify suspicious actions or ensure compliance with regulations.

IAM, as such, simplifies access control, reduces security risks, and keeps work going by automating tasks like password resets. Say, for instance, you work as an admin in a mid-sized company with many employees using cloud apps, email, and internal tools.

Without IAM, you would have to manually add, change, or remove accounts, which can lead to errors. Not to forget the unnecessary wastage of time it would lead to. By automating the process, IAM ensures everyone always has the right access.

PureAUTH

4.4

Starting Price

Price on Request

Learn More

What is Privileged Access Management?

Privileged Access Management (PAM) protects special accounts with extra powers. These accounts can change system settings, access sensitive data, or install software. Common privileged users include IT admins, database managers, and security teams.

PAM solutions are designed to safeguard these powerful accounts because their misuse, whether intentional or accidental, can cause major damage.

Some of the key features of PAM are.

• Restricted access: PAM limits when and how privileged accounts can be used.
• Strong authentication: It often requires multiple authentication steps to access privileged accounts.
• Password management: PAM can automatically change privileged account passwords on a regular schedule to reduce vulnerability.
• Session monitoring: It records sessions involving privileged account usage, so any suspicious action can be traced.
• Alerting and reporting: PAM can notify security teams about unusual or unauthorized access attempts.

Say, for instance, you are an IT administrator with access to your company’s servers. If your account is compromised, an attacker could gain full control of critical systems. PAM’s controls make sure only authorized personnel use such accounts, and actions taken are logged and reviewed.

How IAM and PAM Differ: Complete Feature Comparison Table

This comparison table highlights how IAM supports organization-wide identity security, while PAM adds deeper protection for privileged accounts that pose the highest risk.

Aspect	IAM	PAM
Purpose	Manages identity and access for all users across systems.	Manages and protects privileged accounts with elevated rights.
Who It Covers	Employees, contractors, partners, apps & devices.	Admins, DBAs, root users & powerful service accounts.
Security Features	Authentication (MFA), authorization, role-based access.	Password vaulting, session recording & just-in-time access.
Risk Prevention	Prevents unauthorized access by general users.	Prevents misuse or breach of high-risk privileged credentials.
Implementation Stage	Set up early as a foundation for identity security.	Implemented once critical systems and privileged accounts exist.
Monitoring Level	Basic access logs for compliance.	Full visibility with real-time tracking of privileged activities.
Compliance Support	General identity governance for user access policies.	Stronger audit trails & least-privilege enforcement for regulations.

IAM vs PAM: Understanding Their Core Differences

Both PAM and IAM protect access, but how they do it and what they protect are very different. Let’s understand the differences in detail, so you know which technology to implement…

1. Focus Are

IAM handles identities throughout the organization. It manages everyday user access to various systems based on job roles. This means employees, contractors, or business partners all fall under IAM’s scope.

PAM, on the other hand, focuses exclusively on privileged accounts that have the highest level of permissions. These users have access to systems that could cause serious harm if misused. Because of the sensitivity involved, PAM demands tighter controls.

2. Use Cases

With IAM, you might manage thousands of employees’ login credentials to email, HR tools, or project management apps. IAM ensures users cannot access data they don’t need, reducing insider risks and errors.

With PAM, however, the focus is on fewer users who manage critical systems or financial data. PAM applies rules to stop misuse of these powers, guarding against outside attacks and insider threats.

Jamf Connect

4.2

Starting Price

$ 4.00      

Learn More

3. Security Controls

IAM emphasizes user authentication and role-based permissions. It manages who is allowed in and what they can do.

PAM, on the contrary, adds control layers such as session recording, password vaulting, and approval workflows. It limits privileged account usage to prevent misuse.

4. Implementation Timing

Most organizations start with IAM as a foundation for managing access. PAM is typically introduced later to secure privileged credentials with higher risks.

Microsoft Entra ID

4.2

Starting Price

₹ 500.00 excl. GST

Learn More

Key Similarities Between PAM and IAM

Since both IAM and PAM relate to managing digital access, they share several points…

• Both protect access to IT systems and data by controlling users’ permissions.
• Both involve strong authentication methods.
• Both generate audit logs to track activity for security reviews.
• Both support compliance requirements related to data securi
• Both help reduce the risk of unauthorized system access.

Google IAM

4.1

Starting Price

Price on Request

Learn More

IAM vs PAM: Which One Should You Choose?

Identifying which system to implement depends on your specific security needs. If you require managing a wide workforce’s access with automation, start with an IAM system. But if your environment contains critical servers, databases, or cloud platforms where privileged users hold powerful accounts, a PAM solution would add the necessary layer of security.

Organizations with extensive IT infrastructure usually benefit from integrating both. IAM handles employee access broadly, and PAM enforces strict control over privileged accounts. The choice basically is not mutually exclusive.

Conclusion

Choosing between IAM vs PAM thus depends on your environment and its security requirements. However, using both together can build a more complete access control strategy to protect your business now and in the times to come.