The majority of enterprises still utilize identity and access management (IAM) systems built decades ago. Legacy tools were not designed to support today's cloud-first apps, distributed workforce, or increasingly complex user ecosystems. As a result, organizations are faced with growing pains: inefficient access experiences, rising security threats, and costly compliance gaps.
IAM today is about more than just authentication and provisioning. It is an enabler of Zero Trust security, third-party access management, and identity governance automation at scale. Having said this, the transition from a legacy system to a modern identity platform is not as easy in practice.
This whitepaper is a practical playbook for the modernization of legacy IAM systems. It can help IT and security leaders identify the signals that indicate that modernization is necessary, decide on the key tenets of a future-proof IAM strategy, and create a realistic change roadmap. It also addresses how to evaluate IAM tools and gauge success after implementation.
Whether your organization is embarking on its journey of modernization or re-evaluating a fragmented identity stack, this guide offers a clear path forward.
Identity infrastructure built for a different era is no longer capable of keeping up with today's demands. Most of these systems were built to support on-premises applications and a limited number of internal users. Today, organizations need to offer access for non-employees, remote workers, contractors, partners, and third-party services—all across hybrid and multi-cloud environments. The gap between what legacy IAM systems were built to support and what's required today continues to grow.
This disparity creates more than just operational drag. It increases the likelihood of access-related security breaches, complicates regulatory compliance, and hinders overworked IT staff. When identity is the new perimeter, relying on old infrastructure is introduces unneeded risk.
Modernizing IAM is not just a tech refresh—it's an architectural change. The aim is to enable secure access across more users, devices, and applications, whilst still maintaining control and visibility. It involves automating low-value activities, implementing Zero Trust tenets, and enabling business agility without compromising security.
For most companies, the beginning is simply acknowledging that what worked ten years ago will no longer address today's issues. From there, the conversation shifts from "if" to "how" modernization must take place—and what that must look like.
Legacy IAM systems usually operate behind the scenes without question—until they start causing issues. These issues may appear slowly over time, with teams developing workarounds for them rather than challenging the overall system. But eventually, there will be definite indications that something needs to shift.
Manual provisioning, lagged approvals, and inconsistent deprovisioning are warning signs. If users must wait days for access or maintain permissions upon leaving, it's a sign that your existing IAM system is no longer meeting operational demands.
New applications—particularly SaaS applications—need agile, API-friendly IAM. Older systems cannot accommodate these integrations, instead using fragile workarounds or not supporting standards such as SAML or SCIM.
If audits involve spreadsheets, screenshots, or reviewing logs manually, your IAM system is probably slowing down compliance efforts. A contemporary solution should offer transparent visibility, automated reporting, and traceable access decisions.
Users and contractors seek rapid, easy access. A broken portal, multiple logins, or multi-authentication experience causes frustration and productivity loss—especially in remote or hybrid scenarios.
When access issues emerge in the incident reports—e.g., shared passwords, over-provisioned accounts, or former employees with remaining access—it's time to revisit identity management.
Most legacy systems weren't designed to deal with contractors, partners, or vendors. Managing these identities beyond your core IAM platform introduces risk and makes it difficult to apply consistent policies.
Alone, each of these signs can be addressed. In combination, they reveal that your organization has surpassed your IAM infrastructure. Seeing the trend is the start of building a stronger, more robust identity program.
Replacing an outdated IAM system is a change initiative that involves users, systems, and processes across the organization. A successful modernization process starts with knowing what a modern IAM architecture should look like and then developing a realistic plan to get there.
Prior to creating a roadmap, it is necessary to know the characteristics of a modern identity and access management framework. These concepts are reference points for what your future-state IAM should enable.
IAM systems today are an essential component of the Zero Trust principle. They enforce access on the basis of user context, behavior, and role rather than trusting the network. Least privilege offers that users have access only that they need—nothing extra.
IAM platforms these days need to integrate with a wide variety of cloud services and SaaS apps. A cloud-native IAM platform provides better scalability, quicker deployment, and regular updates. Equally significant, API support facilitates flexible integration with HR systems, ticketing solutions, and custom applications.
Manual provisioning is time-consuming and error-prone. Modern IAM solutions automate the entire identity lifecycle, from onboarding to role changes to deactivation. This reduces administrative overhead and minimizes risk through access.
Instead of managing entitlements in a case-by-case manner, modern IAM uses role-based (RBAC) and attribute-based (ABAC) access control models. These models simplify access decisions and help maintain consistency between sets of users.
Access reviews, certification campaigns, and audit trails should be part of the system, not something tacked on afterwards. Governance helps ensure access is appropriate in the long term, while reducing compliance effort.
Now that your destination is clear, the focus turns to figuring out how to get there. Your roadmap should consider your organization's priorities, risks, and readiness.
Inventory your existing IAM stack: tools, connectors, policies, and users. Identify both your technical and operational gaps. This analysis should cover:
• Systems managed (and not managed) by IAM
• User types (employees, contractors, partners, customers)
• Integration complexity
• Manual processes and workarounds
• Known compliance or audit gaps
Clear goals create focus. Whether you’re aiming to improve audit readiness, reduce time-to-access, or simplify third-party onboarding, your IAM transformation strategy should include measurable outcomes. Define what success looks like before implementation begins.
Not all users can be treated as equal. Internal employees may have different access policies than contractors or suppliers. Start by segmenting your users and defining requirements per segment. Consider frequency of use, sensitivity of data, and onboarding/offboarding scale.
Avoid attempting a full migration in a single step. A phased deployment will reduce risk and build internal momentum. For example:
• Phase 1: Move low-risk internal user sets
• Phase 2: Connect primary cloud applications
• Phase 3: Extend policies to external partners and suppliers
• Phase 4: Automate access reviews and unify governance
Each phase must have a clear outcome and enable adjustments on the basis of the lessons learned during the previous phase.
IAM modernization affects IT, HR, security, compliance, and end users. Involving these parties early into the planning process can help ensure blind spots are identified and bring about greater downstream adoption. This means working with legal and compliance groups to ensure that policies are compliant with regulations.
Documentation must be a part of the process when you have new processes and configurations in place. Future teams will rely on it for maintenance, audits, and ongoing optimization.
IAM needs will continue to shift as your business grows. Leave space for flexibility in your plan. Plan for new integrations, new compliance requirements, and potential business acquisitions that introduce new identity systems.
Modernizing IAM is not about lifting and shifting old systems into a new interface. It’s a shift in how access is defined, granted, and governed. A well-planned approach ensures that this transformation is not only technically sound—but also aligned with the needs of your business, your users, and your future growth.
The success of your IAM modernization initiative depends significantly on choosing the right tools and implementing them effectively. While many platforms claim to support modern identity needs, not all offer the flexibility, scalability, or governance features required to replace legacy systems.
Today's IAM products need to be cloud-native or, as a minimum, cloud-compatible and scalable as your user base grows over time. They should naturally be able to handle hybrid environments where some apps or infrastructure are still on-prem.
No identity system exists in isolation. Look for solutions that adopt shared protocols (SAML, OIDC, SCIM) and have robust APIs to integrate with HR platforms, ticketing tools, and security products. A closed system can create more drag than it removes.
Your IAM solution must support more than your permanent employees, it should also consider non-employee, third-party, and machine identities. Contractors, partners, service accounts, and third-party vendors all require secure, policy-enforced access. A flexible identity model capable of supporting external and non-human identities is paramount.
Choose solutions that go beyond simple access management. Access reviews, certification workflows, audit trails, and policy enforcement must be inherent features, not something that is optional. These capabilities simplify compliance and provide long-term control.
An IAM solution must make it easier—not harder—for users to get what they need. Centralized portals, easy self-service, and single authentication across apps all reduce support tickets and increase adoption.
Evaluate whether or not the vendor is making a serious investment in product innovation and development. Look for a partner, not a supplier—especially if your company requires ongoing customization, training, or extended maintenance.
IAM modernization can happen in different ways depending on the size, infrastructure, and priorities of an organization. The following scenarios depict common identity issues and the type of practices organizations are likely to adopt while replacing their legacy systems.
A large company still had a mainframe-era identity system with minimal integration. As the company grew to use more cloud-based applications, manual provisioning and legacy workflows began to become bottlenecks. The company deployed a modern IAM solution incrementally, beginning with internal infrastructure. They made access management simpler and reduced reliance on custom scripts and manual approvals over time.
A mid-sized tech firm had a number of identity solutions—both open-source and proprietary—managing access in cloud and on-premises environments. The dispersed nature made it difficult to have uniform policies, especially for contractors and temporary employees. Aggregating access controls onto a single IAM solution allowed the firm to enjoy more standardized provisioning, better visibility, and more integrated user experience across systems.
A health organization was depending on a growing number of third-party vendors for billing, IT, and clinical services. Third-party access was usually done manually, without any standardized procedure for approvals or deactivation. After the installation of an IAM platform with built-in support for third-party identity management, the organization installed more formalized workflows, enforced time-based access, and aligned vendor access with internal governance requirements.
These instances illustrate the diversity of modernization projects organizations embark upon in order to improve control, reduce friction, and bring their IAM programs up to the security and operational demands of the modern era.
Upgrading IAM isn't an implementation matter alone, it's also a matter of sustainable impact. Once a new identity system is operational, it's important to see how well it's performing and where it can further enhance itself. Measuring success begins with establishing specific metrics that balance both technical performance and business results.
Faster system access is commonly the first benefit of modernization. Monitoring how long it takes to add a user—or remove access when it's not needed—can help in keeping track of how efficient the operations are.
Since access shifted toward a policy-oriented framework, measuring the extent to which policies are being enforced across different groups of users, systems, and regions helps ensure governance objectives are being met.
Simpler audits are just one of the advantages of maintaining a well-managed IAM program. The ability to produce clean reports, display access reviews, and track decision history is a definite indicator of system maturity.
IAM has its direct impact on the end-users. Tracking how long requests take to be completed and reviewing user feedback or help desk ticket trends should help provide some indication about the user experience.
Over time, a reduction in access-related incidents—i.e., abused access or policy violations—can suggest that controls are working.
An effective modernization project must be measurable. With good data on hand, teams can monitor progress, identify gaps, and inform future improvements as business and security needs evolve.
Legacy identity systems are usually used for longer than they should, not because they are fulfilling current requirements, but because it seems to be too difficult or complicated to move away from them. But as businesses adopt cloud services, remote work extends, and user bases become more complex, legacy IAM simply doesn’t cut it.
New IAM is not just an upgrade. It's a shift toward policy-based management, automation, and visibility that supports both security and business agility. If done with the right foundation and phased implementation, organizations can make the transition from legacy systems without overwhelming teams or affecting operations.
Identity is now an integral part of any digital transformation. Moving now facilitates the development of a future-proof identity management strategy that will evolve with your business.
Have questions or want guidance on your IAM transformation strategy? Contact us at info@anomalix.com to start planning your path forward.
