Basic Knowledge

Identity Providers

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Ngoc Vo

Marketing Executive @CyStack|May 24, 2023

Identity Providers: What They Do and Why You Should Have One

Learn how identity providers can transform your organization’s approach to access control and improve security measures while also improving user experience.

The digital world has evolved rapidly, and so have the challenges that organizations face in protecting their data and applications.

With a growing need for effective solutions to manage access and authentication, identity providers have become increasingly relevant. These systems offer an amazing solution for the challenges that organizations face in protecting their data and applications.

In this article, we’ll help you learn more about identity providers and give you compelling reasons to consider implementing them in your organization.

What are Identity Providers?

An identity provider (IdP) is a system responsible for creating, storing, and managing digital identities. Widely employed in cloud computing, IdPs play a critical role in authorizing and managing access to various resources.

You can think of an IdP as a digital guest list that authorizes access to applications, websites, and other digital services. It makes sure that only the right people or devices get access to the right resource by checking who they are and what they’re allowed to do.

An entity is referred to as a “principal,” which can be a human or a machine. By authenticating principals, IdPs ensure that only authorized individuals or devices can access sensitive data.

For instance, when you use your Google account to log in to Spotify, Google serves as the IdP, while Spotify acts as the service provider. This authentication-as-a-service model simplifies the user experience while maintaining robust security.

Identity provider helps with authentication and authorization. Image: Freepik

Types of Identity Providers

Social Identity Providers

These integrations let users sign in with their social media accounts like Facebook, Google, or Twitter. They’re user-friendly and make it easy to access various websites and applications.

Although convenient, social IdPs might not meet the security needs of organizations requiring tight access control.

Enterprise Identity Providers

They cater to businesses and organizations, offering advanced features such as single sign-on (SSO), multi-factor authentication (MFA), and detailed access control. Examples include Okta, Microsoft Azure Active Directory, and Google Cloud Identity.

These IdPs provide better security and control than social IdPs, making them a good fit for organizations with strict security requirements. However, they can be more complex and costly.

Government Identity Providers

These services authenticate users and manage access to sensitive resources for government entities, like tax, welfare, or healthcare services.

The United States and the United Kingdom’s GOV.UK Verify are examples of such IdPs. They follow strict security standards and compliance requirements to protect sensitive data. However, these providers are often limited in scope, typically applying only to government services.

Benefits of Using Identity Providers

Reducing Password Fatigue

Password fatigue is a common problem among employees who must remember multiple credentials for various applications.

Identity providers address this issue by implementing single sign-on (SSO) capabilities, which let users access multiple applications using just one set of credentials. This reduces the cognitive burden on employees, encouraging the creation of stronger, more secure passwords, as they have fewer to remember.

By leveraging SSO, organizations can minimize the risk of employees resorting to insecure practices, such as reusing passwords or storing them in easily accessible locations. This helps maintain a higher level of security and reduces the likelihood of a successful attack due to compromised credentials.

Improved User Experience

Identity providers significantly enhance the user experience for employees. With single sign-on, employees can effortlessly access the applications they need without the hassle of remembering multiple passwords.

This convenience not only saves time but also increases employee satisfaction and productivity, as they can focus on their work rather than being bogged down by authentication processes.

Identity providers can also offer features like self-service password resets and account management. Employees can manage their credentials independently, further enhancing their experience and reducing the workload on IT support teams.

Centralized Management

With identity providers, managing users becomes centralized and more streamlined. Image: Freepik

For IT admins, identity providers offer the advantage of centralized authentication and access control management.

By consolidating user accounts and access permissions into a single system, organizations can eliminate overlapping work, ensure consistent enforcement of security policies, and better monitor user activity.

Identity providers enable the security workforce to quickly identify and address security incidents.

In the event of a breach or unauthorized access, they can easily investigate the root cause, track user activity, and take appropriate action to mitigate the issue. This streamlined approach leads to more effective security management and faster incident resolution.

Enhanced Security

Identity providers play a crucial role in strengthening an organization’s security posture. By centralizing authentication mechanisms and enforcing multi-factor authentication, identity providers make it more difficult for attackers to compromise accounts.

They also provide a unified security framework, which consolidates user credentials and simplifies the application of access policies across the organization.

On top of that, these services allow for the efficient management of user sessions, ensuring that idle sessions are automatically terminated after a certain period of inactivity.

This further minimizes the risk of unauthorized access. Attackers will have a smaller window of opportunity to exploit unattended devices or open sessions.

Considerations When Choosing an Identity Provider

Access Your Organization’s Needs

To pick the right identity provider (IdP), start by examining your organization’s unique requirements. Consider factors such as company size, industry, and any regulations that might influence your choice. This way, you’ll have a clear understanding of what you need from an IdP.

From this examination, compile a list of essential features that focuses on the most important aspects, like single sign-on, multi-factor authentication, and user management. By doing so, you can narrow down the list of potential IdP solutions.

Organizations must find identity providers that cater to their specific needs. Image: Freepik

Explore IdP Options

Take a close look at various IdP solutions on the market, comparing their features, pricing, and scalability. This helps you find the best match for your organization’s needs and budget.

Don’t forget to factor in future growth and changes, ensuring the IdP can adapt as your needs evolve.

Also, remember that user experience and integration capabilities are vital when evaluating IdP solutions. Check how easy it is for employees and administrators to use the system, and make sure it’s compatible with your existing systems and applications.

Evaluate Security and Compliance

Review the security features of different IdP solutions and choose a robust offer. Strong security measures, like multi-factor authentication, encryption, and monitoring, are crucial for protecting your organization’s sensitive data.

Besides security, confirm the IdP meets industry-specific compliance requirements. If your organization processes personal data from European Union citizens, the IdP must be GDPR-compliant. Other regulations to consider include HIPAA for healthcare organizations and SOC 2 for technology service providers.

Seek Feedback and Reviews

Collect feedback from peers and industry experts by reaching out to colleagues or joining industry forums and online communities. Gathering opinions on the strong points and downsides of various IdP solutions provides valuable insights for your decision-making process.

Reading customer reviews and similar case studies can help understand the experiences of businesses like yours. Prefer unbiased reviews and testimonials, which can give you an accurate picture of the provider’s performance, reliability, and customer support.

Test Drive the IdP Solution

Before committing to an IdP, request a demo or trial period to test its functionality and ease of implementation. Hands-on testing lets you see how well the solution integrates with your systems and applications and identify potential issues during implementation.

Assess the support and training options offered by the IdP vendor. Ensure they provide quality customer support and documentation so you’ll get the help you need if any issues arise.


A firm understanding of identity providers and what they offer is essential for finding the most suitable solution for your specific needs. You should make an informed decision that aligns with your organization’s security requirements and user experience expectations.

At CyStack, we understand the importance of implementing robust identity provider solutions tailored to your organization’s unique needs.

With our extensive experience in the field, we can help you evaluate, deploy, and manage the right solution for your organization.

Don’t hesitate to reach out to our expert consultants at CyStack to discuss your identity provider requirements and learn how we can support you in enhancing your organization’s security posture.

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