On-Prem vs Cloud PAM: Which Should You Choose?

When deciding between an on-premises or cloud-based Privileged Access Management (PAM) solution, a cloud-based PAM solution is recommended because it is easier to manage, highly scalable and cost-effective. 

Continue reading to learn more about the differences between on-prem and cloud PAM, the pros and cons of each and the important factors to consider when choosing the right solution for your organization. 

What is on-prem PAM?

On-premises PAM refers to a PAM solution that is deployed and managed within an organization’s physical infrastructure rather than being hosted in the cloud. This means the organization itself is responsible for the installation, configuration and maintenance of the PAM systems. 

What is cloud-based PAM?

Cloud-based PAM refers to a PAM solution that is deployed and managed in a cloud environment. Unlike on-prem solutions, cloud PAM is managed by a third-party cloud service provider, which handles the ongoing maintenance of the organization’s PAM system, reducing the burden on IT teams. 

What to consider when choosing between on-prem and cloud PAM

Before choosing between on-prem and cloud PAM solutions, evaluate your organization’s compliance requirements, security needs, budget and resource requirements. Consider how each PAM solution integrates with existing systems and its scalability to grow within your organization. Lastly, if choosing a cloud-based solution, ensure the vendor’s reliability and trustworthiness. 

Compliance requirements

Regardless of the industry, all organizations must adhere to compliance requirements to ensure the security and integrity of sensitive data. For federal agencies or contractors handling federal data, cloud-based solutions must comply with the Federal Risk and Authorization Management Program (FedRAMP). This program mandates that cloud providers meet strict security standards before their services can be authorized for use by federal entities. Cloud solutions with FedRAMP Authorization also offer stronger audit capabilities and continuous monitoring to ensure compliance with federal standards. Real-time monitoring of privileged accounts helps organizations quickly detect and mitigate potential security risks. Other regulatory requirements, such as HIPAA, PCI DSS and GDPR, also influence the choice between on-prem and cloud PAM. 

Security needs and risk tolerance

On-prem PAM offers physical control over an organization’s infrastructure, allowing it to directly manage hardware and configure systems based on its security needs. This provides organizations with full transparency and customization, but it also comes with the significant responsibility of managing systems and ensuring security. However, a cloud PAM solution can be just as secure if you select one with a strong security architecture that is zero knowledge and zero trust, which ensures that data cannot be read even if intercepted. 

Cost and resource requirements

On-prem PAM requires significant upfront capital investment in infrastructure and resources to deploy it, plus ongoing costs for maintaining hardware, software updates and security patches. Cloud PAM solutions are more cost-effective because they operate on a subscription based pricing model, which eliminates the need for large capital expenditures while also reducing the burden on internal resources. The vendors are responsible for maintaining the performance of the software and often include new features in updates.

Scalability and flexibility

Organizations can easily meet growing or changing business needs with cloud based solutions due to their inherent scalability and flexibility. These solutions allow organizations to quickly scale resources as demand fluctuates, effectively adapting to changing business requirements. When it comes to scaling with on-prem solutions, additional hardware and manual configuration are required, leading to higher costs and complexity. This process often demands more in house IT resources to manage the expanded architecture, making it less efficient than cloud-based solutions. 

Integration with existing systems

Choosing a PAM solution that easily integrates with your organization’s existing systems is critical to ensuring smooth and efficient operations. On-prem solutions are often easier to integrate with legacy systems or highly customized environments since they can be tailored to fit the unique needs of an organization’s IT infrastructure. In contrast, cloud PAM solutions are designed to integrate well with cloud services and hybrid environments. They offer strong compatibility with modern cloud-based systems and applications, making them ideal for scalable organizations. However, some newer cloud PAM solutions can integrate with legacy systems as well, allowing all infrastructure to be protected.

Vendor reliability and trustworthiness

When choosing a cloud PAM solution, it is important to select vendors with a strong, proven history of security and compliance, ensuring they adhere to industry standards. A reliable vendor should prioritize zero-knowledge architecture, zero-trust models and end-to-end encryption. The vendor should also have high availability and uptime as a PAM solution is a critical platform. These key features are essential for securing sensitive data and limiting the risk of unauthorized access. For organizations handling federal data, selecting vendors that are FedRAMP Authorized is necessary to ensure compliance with security standards.

The bottom line

The most effective way for organizations to manage and secure privileged accounts is by adopting a cloud-native PAM solution. KeeperPAM is the ideal solution because it is both zero-trust and zero-knowledge, keeping sensitive data secure and accessible only to authorized users. Additionally, KeeperPAM is FedRAMP and StateRAMP Authorized, meaning it meets the strict security standards required by government agencies. 

Request a demo of KeeperPAM today to efficiently manage privileged access and ensure the security of your organization’s data.