With SAP announcing the end of maintenance for its Identity Management (IDM) system by 2027 and extending support through 2030, organizations using on-premises identity governance systems face a critical decision. While this may seem like ample time, replacing an Identity Governance and Administration (IGA) solution is a complex and often lengthy process that can take several years to complete. Organizations must begin planning now to avoid rushed decisions and potential disruptions.
A Complex Transition Ahead
Replacing an IGA system is far more than a simple technical upgrade. These systems are deeply embedded in user lifecycle management, provisioning, and access governance, and swapping them out can be challenging. On average, replacing an IGA system takes at least three years, to the need for thorough planning, process alignment, and system integration. The decisions made today will affect organizations for decades to come, making it critical to consider future requirements rather than merely replicating existing systems with newer tools.
Rethinking IAM for the Future
The end of SAP’s IDM system provides an opportunity to reimagine how Identity and Access Management (IAM) should be designed in the future. Rather than focusing on a like-for-like replacement, organizations should take a strategic approach, considering how identity governance will evolve in a hybrid IT environment. Modular, flexible architectures – especially those based on the KuppingerCole Identity Fabric - can provide the adaptability needed to address evolving security, governance, and access management challenges in hybrid environments.
Regulatory Pressure and Hybrid Complexity
The regulatory environment around identity management has become increasingly complex, and organizations must now comply with stricter access governance requirements. Hybrid IT setups, combining on-premises systems with cloud services, complicate the landscape. Many organizations already run multiple identity management systems - one for on-premises applications and another for cloud services - leading to integration headaches. However, this challenge also presents an opportunity to streamline identity governance processes and modernize outdated systems.
Efficiency Through Automation
One key lesson from traditional IGA implementations is the need for greater automation. Manual processes, such as cumbersome recertification workflows and role management, often reduce efficiency and increase the risk of errors. Modern IGA solutions should prioritize automation to handle provisioning and governance tasks more effectively. Over-customization has been a frequent issue with legacy IGA systems, leading to complex environments that are difficult to update and maintain. Reducing customization in favor of standardized, scalable solutions can simplify future upgrades and lower long-term maintenance costs.
Exploring Alternatives: Cloud and Hybrid Approaches
With SAP shifting its focus toward cloud-based identity services, organizations must evaluate the potential of cloud IGA solutions. Both SAP Cloud Identity Services and Microsoft Entra ID Governance services might offer viable alternatives to on-premises IDM systems, but a one-size-fits-all approach is rarely the answer. Each organization has unique needs based on factors like regulatory requirements, business size, and complexity. Conducting a comprehensive requirements analysis is essential before selecting a tool, ensuring it aligns with long-term strategic goals.
Holistic Planning for a Future-Ready IGA
The replacement of an IGA system isn't just a technical exercise. It requires a holistic rethinking of processes such as policy enforcement, role models, and integration with risk management solutions. The cost of such projects goes beyond licensing fees, as implementation can be six to ten times higher than subscription costs alone. Therefore, a thorough approach to process reviews, tool selection, and planning will pay dividends, reducing the risk of costly rework or operational inefficiencies.
The Financial Impact of IGA System Replacement
Replacing an IGA system is a significant financial commitment, especially with the shift toward subscription-based models. However, organizations that carefully plan and choose the right solutions will see long-term benefits in terms of compliance, operational efficiency, and security. Investing in the right identity governance infrastructure now will ensure that future regulatory and technological challenges are met with agility.
Time to Act
The end-of-life announcement for SAP's IDM system should serve as a wake-up call for organizations still reliant on traditional on-premises identity systems. The clock is ticking, and the time to start planning is now. By conducting a thorough analysis of current and future requirements, avoiding over-customization, and embracing automation, organizations can ensure they are well-prepared for the evolving world of identity governance and access management. The future of identity governance lies in flexible, scalable solutions that integrate seamlessly with hybrid IT environments - don't wait until 2027 to start the journey.