IAM (Identity and Access Management) solutions help businesses secure systems, reduce costs, and meet compliance needs. Here’s a quick breakdown of three popular options:
- Keycloak: Self-hosted, customizable, with infrastructure costs starting at $1,250/month. Requires maintenance and technical expertise but offers flexibility for complex setups.
- Okta: SaaS-based, subscription pricing starts at $6/user/month. Minimal maintenance, scalable, but costs can rise with add-ons and user growth.
- Azure AD (Microsoft Entra ID): Microsoft-integrated, pricing starts at $6/user/month. Includes free tier for basic needs and advanced features for enterprise users.
Quick Comparison
| Feature | Keycloak (Self-Hosted) | Okta (SaaS) | Azure AD (Microsoft Entra ID) |
|---|---|---|---|
| Base Cost | $1,250/month | $6–$17/user/month | $6–$12/user/month |
| Maintenance | ~12 hours/month | Minimal | Minimal |
| Customization | High | Moderate | Moderate |
| Scalability | Manual scaling | Automatic | Automatic |
| Security | Self-managed | Built-in | Built-in |
Each option offers unique trade-offs. Choose Keycloak for control, Okta for ease of use, or Azure AD for Microsoft ecosystem integration.
Keycloak vs Okta vs JWT | Best Platform For Identity and …
1. Keycloak-based Platforms
A production Keycloak cluster serving thousands of users comes with specific monthly expenses. Here’s a breakdown of the typical costs:
Infrastructure Costs
| Component | Specifications | Monthly Cost |
|---|---|---|
| Keycloak Cluster (3 VMs) | 4 CPUs, 16 GB RAM each | $510 |
| Database & Reverse Proxy (2 VMs) | 2 CPUs, 8 GB RAM each | $200 |
| Security Gateway Setup | Internet & NAT gateways | $160 |
| Basic Operations | 3 hrs/week by entry-level engineer | $360 |
| Total Estimated Monthly Cost | $1,250 |
These figures are based on average VM pricing and operational rates for self-managed Keycloak deployments.
Advantages of Managed Services
Opting for a managed Keycloak service eliminates the need for provisioning, patching, scaling, and handling security tasks. This allows your team to focus on core business priorities instead of infrastructure maintenance.
These services also include compliance features like data encryption (both at rest and in transit), GDPR-compliant processes, SOC 2 certification, and plans for HIPAA/ISO 27001 compliance by 2025.
Hidden Costs of Self-Management
An IAM engineer highlights that managing Keycloak without dedicated resources can easily turn into a full-time job. This adds operational overhead that may not be immediately apparent.
Scalability and Flexibility
Keycloak is designed to handle multi-organization B2B setups, high-volume B2C use cases, and high availability through clustering. These features make it a strong choice for businesses looking to scale.
Next, we’ll dive into Okta’s SaaS offering to compare costs, scalability, and operational trade-offs.
2. Okta
Okta takes a different approach to costs compared to Keycloak, offering predictable per-user pricing instead of shifting infrastructure expenses in-house.
Platform Costs and Licensing
Okta provides tiered pricing for workforce and customer identity solutions, with monthly rates based on the number of users:
| Tier | Monthly Cost/User | Included Features |
|---|---|---|
| Platform Starter | $6 | Universal Directory, 5 Workflows, Single Sign-On, Basic MFA |
| Platform Essentials | $17 | Everything in Starter plus 50 Workflows, Adaptive MFA, Lifecycle Management, Access Governance, Privileged Access |
| Higher tiers | Custom Pricing | Includes advanced features like API Access Management, Identity Security Posture Management, and Access Gateway |
Organizations must sign a minimum annual contract of $1,500. This pricing structure serves as a foundation for comparing ROI across platforms.
Hidden Cost Considerations
While the base pricing is clear, additional costs can add up. Optional features like Adaptive MFA ($3–$6 per user/month), Lifecycle Management ($4 per user/month), and API Access Management ($2 per user/month) can increase expenses. There are also surcharges for SSO and SCIM provisioning, along with costs for implementation, maintenance, integrations, and compliance.
Enterprise Value Proposition
Okta has proven its value for many organizations. For example, Wyndham Hotels reduced development labor by 85% using Okta Workflows:
"We have one place where we can validate our security posture. Dev teams now have just one token to worry about. They do authentication and authorization in a consistent way no matter where they’re deployed." – Trey Ray, Manager, Cybersecurity
With over 19,300 customers and more than 7,000 integrations, Okta has established itself as a leading player in the market. It received a 94% recommendation rate in the 2023 Gartner® Peer Insights™ Customers’ Choice for Access Management.
"Okta Access Gateway was the right technology for transforming our legacy authentication infrastructure without disrupting the legacy systems." – Ashish Sanghrajka, Chief Information Officer of Hitachi Americas and EMEA
Next, we’ll dive into Azure AD’s licensing model and its impact on ROI.
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3. Azure AD
Microsoft Entra ID (formerly Azure AD) offers a pricing structure designed to fit different user needs and organizational sizes, helping businesses optimize their investment.
- Free: $0 – Includes directory services and single sign-on (SSO) for Microsoft 365.
- P1: $6/user – Adds SSO, multi-factor authentication (MFA), and Conditional Access.
- P2: $9/user – Includes all P1 features plus Identity Protection and Privileged Identity Management.
- Entra Suite: $12/user – Adds governance tools, network access, and identity verification.
- Standalone add-ons: Options like Internet Access, Private Access, and ID Governance ($5–$7/user), or Workload ID ($3/workload).
Microsoft Entra ID is trusted by 720,000 organizations and has been a leader in Gartner’s Magic Quadrant for Access Management for eight consecutive years.
For businesses managing large user bases, Entra External ID offers 50,000 free monthly active external users, making it a cost-effective solution.
The Free tier is included with Azure and Microsoft 365 subscriptions, providing immediate access to essential directory services. Higher tiers, like P2, offer advanced tools to reduce security risks and streamline administrative tasks.
Up next, we’ll compare these pricing and feature options to specific use-case requirements in a detailed feature matrix.
Features and Limitations
When choosing an IAM solution for enterprise use, it’s important to weigh the features and limitations to understand long-term costs and efficiency. Below is a comparison of key aspects that influence implementation expenses and operational performance.
| Feature Category | Keycloak-based Solutions | Okta | Azure AD (Microsoft Entra ID) |
|---|---|---|---|
| Base Infrastructure Cost | $1,250/month (self-hosted) | Subscription-based | Subscription-based |
| Maintenance Requirements | ~12 hours/month | Minimal | Minimal |
| Customization Flexibility | High | Moderate | Moderate |
| Implementation Complexity | High | Low | Low |
| Operational Costs | $360/month (estimated) | Included in subscription | Included in subscription |
| Security Features | Self-managed | Built-in | Built-in |
| Scalability | Manual scaling | Automatic | Automatic |
Keycloak’s self-hosted option costs about $1,250/month and requires around 12 hours of maintenance monthly. It also demands dedicated resources for security, compliance, and scaling. However, it offers extensive customization and control, making it a good choice for organizations needing tailored solutions.
On the other hand, Okta and Azure AD include maintenance, security, and automatic scaling as part of their subscription fees. These SaaS options are easier to implement and have lower operational overhead but rely on per-user licensing, which can increase costs as your organization grows.
Ultimately, the decision comes down to balancing upfront and operational costs with the level of control and flexibility you need. These trade-offs will be explored further in the next section: Choosing the Right IAM Solution.
Choosing the Right IAM Solution
When picking an IAM solution, it’s important to assess your organization’s specific needs and weigh them against the potential return on investment (ROI). The table below can help you choose a platform that aligns with your organization’s size and budget. Be sure to also consider fixed versus per-user costs when evaluating options.
Here’s a breakdown of plans based on monthly spend and required features:
| Business Size | Plan | Monthly Cost | Ideal For |
|---|---|---|---|
| Small Business/Dev | Skycloak Dev Plan | $25 | Solo developers or small teams with basic needs |
| Growing Startup | Skycloak Startup | $450 | Startups scaling operations and managing multiple clusters |
| Enterprise | Skycloak Growth | $1,000 | Larger organizations needing advanced security and 24/7 support |
| Custom Enterprise | Self-hosted Keycloak | $1,250+ | Companies requiring full control and compliance |
To get the best ROI, consider not only the direct costs but also the savings from automation and the value of meeting security and compliance standards.