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The Hidden Costs of PAM: Why Smaller Companies Are Struggling

This article explores the challenges smaller companies face when trying to implement Privileged Access Management (PAM) solutions. While PAM is essential for securing administrative accounts and privileged credentials, traditional enterprise-grade solutions often come with significant hidden costs that make them impractical for small and medium-sized businesses (SMBs).

Understanding the Hidden Costs

The article identifies several key areas where costs can quickly escalate for smaller companies. The initial licensing fee is often just the beginning. The most significant costs are related to the complexity of implementation, the need for specialized IT staff to manage the solution, and the disruption to daily operations.

1. The Cost of Complexity

Traditional PAM solutions are built for large, complex enterprise environments. They require extensive customization and integration with existing systems. For an SMB with limited IT resources, this can lead to a lengthy and painful deployment process, often requiring expensive external consultants.

2. The Cost of Management

Once implemented, these solutions are not “set-and-forget.” They require continuous management, including policy updates, user onboarding and offboarding, and monitoring. Smaller teams may lack the dedicated personnel to handle this, leading to security gaps and a failure to fully realize the benefits of the PAM system.

3. The Cost of Disruption

A poorly implemented PAM solution can disrupt workflows and frustrate employees. Forcing users to adopt overly complicated processes can lead to them finding workarounds, creating new security risks and undermining the very purpose of the PAM system.

A Better Approach for SMBs

The article suggests that smaller companies should look for modern, cloud-native PAM solutions that are designed for simplicity and ease of use. These solutions can provide strong security without the steep learning curve, high management overhead, and disruptive implementation process of traditional platforms. By choosing a more streamlined approach, SMBs can protect their privileged accounts effectively and affordably.

About JumpCloud
At JumpCloud, our mission is to build a world-class cloud directory. Not just the evolution of Active Directory to the cloud, but a reinvention of how modern IT teams get work done. The JumpCloud Directory Platform is a directory for your users, their IT resources, your fleet of devices, and the secure connections between them with full control, security, and visibility.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

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