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Short answer: Identity and access management (IAM) decides who every user is and what they can reach. Privileged access management (PAM) is the part of identity security that adds tighter control over the few accounts that can change systems: admins, service accounts and emergency accounts. You need IAM first; PAM closes the gap IAM leaves around admin rights.
Key takeaways
- NIST describes identity management as "establishing and managing the roles and access privileges of individual network users," which covers the whole workforce, not only admins (NIST CSRC glossary).
- Microsoft's enterprise access model separates ordinary user access from "privileged access pathways," which it says "must be stringently protected against compromise" because of their control over business-critical assets (Microsoft Learn).
- Some IAM platforms include privileged features, such as Microsoft Entra Privileged Identity Management, which provides just-in-time, approval-based and time-bound role activation, but it covers Microsoft Entra, Azure and Microsoft Online Services resources rather than every server and database (Microsoft Learn, PIM overview).
- Microsoft states that using Entra PIM "requires licenses" and points to its ID Governance licensing page, so "we already have IAM" does not always mean the privileged controls are switched on (Microsoft Learn).
PAM vs IAM at a glance
| Attribute | IAM (identity and access management) | PAM (privileged access management) |
|---|---|---|
| Who it covers | Every workforce identity, often partners and customers too | Admin, root, service, and emergency (break-glass) accounts |
| Main question | Who is this user and what should they reach? | Who is using admin rights right now, why, and for how long? |
| Typical controls | Directory, SSO, MFA, provisioning, role-based access, access reviews | Credential vaulting and rotation, just-in-time elevation, session brokering and recording, approval workflows |
| What a failure looks like | A regular account reaches data it should not | An attacker with admin rights controls the directory, servers or cloud tenant |
| Usual owner | Identity or IT operations team | Security team, infrastructure team, or both |
| Relationship | The foundation | A specialized layer that depends on IAM for identity |
How PAM and IAM differ
Scope: every identity versus the accounts that can change systems
IAM covers the whole population of identities: employees, contractors and often applications, with a directory as the source of truth. PAM covers a much smaller set, the accounts that can administer the directory, servers, databases, network devices and cloud tenants. Because PAM relies on IAM to know who a person is, PAM vs IAM is not an either-or choice; PAM is a layer on top.
Controls: granting access versus supervising how admin access is used
IAM controls are about the front door: provisioning an account, signing in with SSO and MFA, and removing access when someone leaves. PAM controls continue after sign-in. They keep shared admin passwords in a vault and rotate them, issue admin rights only for a task, require approval or a reason, and record privileged sessions for audit.
Threat: broad account misuse versus control of everything
A compromised ordinary account exposes what that user could reach. A compromised privileged account can change the controls themselves. Microsoft's access model states the goal as preventing "control of higher planes from lower planes," meaning the control plane (identity systems) and the management plane (IT management tools) need stricter protection than the data and workloads they manage (Microsoft Learn).
Where IAM and IGA stop and PAM starts
The boundary is easiest to draw with Microsoft's three planes. Identity systems form the control plane, IT management tools form the management plane, and business apps and data form the data/workload plane (Microsoft Learn).
- IAM handles user access and application access into the data/workload plane: accounts, sign-in, SSO and MFA.
- Identity governance and administration (IGA) sits inside IAM and answers "should this person still have this access?" through joiner-mover-leaver workflows, approvals and access reviews.
- PAM takes over for the privileged access pathways into the control and management planes: domain admins, cloud global admins, root on servers, database owners, and the service accounts scripts use.
In practice IGA might approve that an engineer belongs in the database admin group; PAM decides when that engineer actually gets the admin credential, for how long, and what gets recorded while it is in use.
Native IAM privilege features versus a dedicated PAM tool
Many teams already own some PAM-style controls inside their IAM platform. Microsoft Entra Privileged Identity Management, for example, offers just-in-time access, time-bound assignments, approval, MFA on activation, justification, notifications, access reviews and audit history (Microsoft Learn). Microsoft defines the eligible assignment model plainly: there is "no difference in the access given to someone with a permanent versus an eligible role assignment," only that the user must activate it.
The gap is coverage. PIM manages roles in Microsoft Entra ID, Azure and Microsoft Online Services such as Microsoft 365 and Intune, per the same page. Local admin accounts on servers, network device logins, database accounts and shared credentials outside that tenant usually need a dedicated PAM product with vaulting and session controls.
When to focus on IAM, and when to add PAM
Focus on IAM first if you...
- have no single directory or still create accounts by hand in each app,
- lack SSO and phishing-resistant MFA for the workforce,
- cannot produce a list of who has access to what,
- have no reliable offboarding process.
Add PAM if you...
- share admin or root passwords among staff or with an MSP,
- have service accounts whose passwords never change,
- have admins holding standing global or domain admin rights,
- face an auditor asking who ran a privileged command and when,
- run servers, databases or network gear that your IAM platform does not manage.
Moving from IAM-only to PAM
- Inventory privileged accounts: directory admin roles, cloud admin roles, local admins, service accounts and break-glass accounts.
- Use what your IAM platform already includes, such as just-in-time role activation for cloud admin roles, if it is licensed.
- Vault and rotate shared credentials that sit outside the IAM platform.
- Add session controls for the highest-risk systems first.
- Feed PAM activity back into access reviews so IGA and PAM decisions stay consistent.
Common misconceptions about PAM and IAM
- "SSO and MFA cover admins too." They confirm who signed in; they do not limit how long admin rights last or record what happened with them.
- "PAM replaces IAM." PAM depends on IAM for identities and group membership.
- "PAM is only about people." Service accounts and application credentials are privileged accounts too, and often the least watched.
FAQ
Is PAM part of IAM?
Yes. Privileged access management is usually treated as a specialized area within identity and access management. IAM manages all identities and their access, and PAM adds stricter controls for accounts with administrative rights.
What is the main difference between IAM and PAM?
IAM decides who can access which resources across the whole organization. PAM controls, time-limits and records the use of privileged accounts, such as admins and service accounts, that can change systems and security settings.
Do I need PAM if I already have IAM?
You need some PAM controls once admins hold standing rights, share passwords, or manage systems outside your IAM platform. A small team fully inside one cloud tenant may cover much of this with IAM features such as just-in-time role activation.
Is Microsoft Entra PIM a PAM tool?
Microsoft Entra Privileged Identity Management provides core PAM functions, including just-in-time and approval-based role activation, for Microsoft Entra, Azure and Microsoft Online Services resources. It does not vault credentials for on-premises servers, network devices or databases, which is where dedicated PAM tools usually come in.
Where does identity governance fit between IAM and PAM?
Identity governance and administration (IGA) is the part of IAM that manages access requests, approvals and reviews. It decides whether someone should hold access; PAM governs how privileged access is used once it is held.
Bottom line
PAM vs IAM is a question of layers, not a choice. Get IAM basics in place first, then add PAM where admin rights are shared, permanent or outside your IAM platform's reach. If your admin accounts all live in one cloud tenant, check what your IAM license already includes before buying more. To compare dedicated tools, start at the privileged access management software hub or build a list with the software shortlist tool.
Sources (3)
- Identity and access management (glossary), NIST CSRC, https://csrc.nist.gov/glossary/term/identity_and_access_management, accessed September 22, 2026
- Securing privileged access: enterprise access model, Microsoft Learn, https://learn.microsoft.com/en-us/security/privileged-access-workstations/privileged-access-access-model, accessed September 22, 2026
- What is Privileged Identity Management?, Microsoft Learn, https://learn.microsoft.com/en-us/entra/id-governance/privileged-identity-management/pim-configure, accessed September 22, 2026