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Identity Sprawl Is the New SaaS Sprawl
Context. Over the last month, many organizations have done the right things: reduced SaaS waste, planned Windows 11 migrations, upgraded Wi-Fi, and tried to rein in collaboration overload. Yet breaches, audit findings, and ransomware incidents continue to trace back to the same root cause: identity sprawl. Identity — not networks, servers, or endpoints — is now the primary attack surface for modern organizations.[Microsoft][CISA]
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Table of contents
- What changed (why identity is now the perimeter)
- Why it matters beyond “turn on MFA”
- First 48 hours: the identity truth audit
- Operational realities
- Evidence leaders want
- 7-day plan
- AI trend (blurb)
- FAQ
- Sources & citations
What changed (why identity is now the perimeter)
The network is no longer the boundary. Cloud-first applications, remote work, and SaaS platforms allow users to authenticate directly to services without touching internal networks. VPN usage continues to decline while identity-based access expands. Microsoft and CISA both now frame identity as the foundational security control in Zero Trust architectures.[Microsoft][CISA]
SaaS growth outpaced governance. Industry benchmarks show organizations routinely operating 100+ applications, each with its own users, OAuth grants, API tokens, and admin roles. Identity cleanup rarely happens when projects end or employees depart, leaving behind persistent access paths.[Okta][Zylo]
MFA adoption plateaued. While MFA is widely deployed, enforcement is often inconsistent. Legacy authentication, service accounts, and “temporary” exclusions remain common entry points exploited during modern attacks.[Microsoft][Mandiant]
Why it matters beyond “turn on MFA”
- Identity breaches scale instantly. A compromised identity grants access across email, files, finance systems, and collaboration platforms simultaneously.[Microsoft]
- Audits start with access. Regulators and public-sector auditors increasingly focus on privileged access, justification, and documentation rather than perimeter defenses.[CJIS][NIST]
- Identity debt compounds quietly. Unlike outages or failed patches, identity risk remains invisible until exploited — often with catastrophic impact.[CISA]
First 48 hours: the identity truth audit
- Export all identities. Users, guests, service accounts, and privileged roles from your primary IdP.
- Classify accounts. Human, external, service, and emergency/break-glass.
- Validate MFA reality. Identify exclusions, legacy protocols, and conditional access gaps.
- Flag dormancy. Accounts inactive for 60–90 days without owners or justification.[Microsoft]
Operational realities
- “MFA will break things” is rarely true. Most exclusions persist due to convenience, not technical necessity.
- Service accounts are high risk. They often lack rotation, ownership, or logging.
- Too many admins exist. Standing privilege increases blast radius and audit exposure.[Microsoft][NIST]
Evidence leaders want
- % of identities with MFA enforced
- Number of privileged accounts
- Count of dormant identities removed
- Applications authenticating outside SSO
- Service accounts with assigned owners
7-day plan: reduce identity risk fast
- Day 1–2: Inventory and classify identities
- Day 3: Enforce MFA and block legacy auth
- Day 4: Reduce standing admin privileges
- Day 5: Disable dormant and orphaned access
- Day 6: Document and secure break-glass accounts
- Day 7: Publish an identity risk scorecard
AI trend (blurb)
AI amplifies identity mistakes. Copilots and automation tools inherit user permissions. Over-permissioned identities combined with AI increase the speed and scope of data exposure, making identity governance a prerequisite for responsible AI adoption.[Microsoft]
FAQ
- Is MFA enough? No. MFA without least privilege and lifecycle management still leaves organizations exposed.
- What about shared accounts? Shared accounts undermine accountability and should be eliminated.
- How often should access be reviewed? Quarterly at minimum, immediately upon role change.
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Sources & citations
- Microsoft — Zero Trust and identity security guidance
- CISA — Zero Trust Maturity Model
- Okta — Businesses at Work Report
- Zylo — SaaS Management Index
- Mandiant — Identity-based attack analysis
- NIST SP 800-53 / 800-63 — Digital identity guidance
- CJIS Security Policy — Access control & auditing