Positioning IAM Against Incumbents and Upstarts in 2025

In today's fragmented identity and access management (IAM) landscape, cybersecurity marketers face a daunting challenge: how to meaningfully differentiate in a market crowded with over 3,500 cybersecurity solutions.

The IAM segment is particularly contested within the broader cybersecurity industry, with organizations caught between legacy incumbents leveraging their established relationships and cloud-native challengers touting innovation. According to Gartner's latest estimates, this proliferation of vendors has created a paradox of choice that often paralyzes buyers in 6-12 month sales cycles.

The fundamental tension lies between the integration strength of legacy solutions versus the agility of cloud-native innovations. To successfully position an IAM solution in this competitive environment, vendors need a multi-dimensional approach—one that addresses both technical capabilities and business outcomes across diverse stakeholders. This guide provides a structured framework for crafting positioning that resonates with each audience and distinguishes your solution from both established players and emerging disruptors.

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The Evolved IAM Competitive Landscape

Market Segmentation: Beyond the Magic Quadrant

The IAM market has evolved beyond the simple dichotomies presented in analyst reports. While Gartner Magic Quadrants and Forrester Waves provide useful reference points, successful positioning requires a deeper understanding of market nuances:

1. Traditional Market Leaders vs. Cloud-Native Challengers: The market is divided between established vendors with legacy on-premises roots (Microsoft, Oracle, IBM) and cloud-born challengers (Okta, Auth0, OneLogin). These groups approach IAM fundamentally differently—incumbents emphasize integration within their broader ecosystem, while cloud-native players promote vendor neutrality and rapid innovation. For example, Okta explicitly positions its platform as a neutral alternative to Microsoft's bundled approach, which resonates with organizations seeking to avoid vendor lock-in.
2. Specialized Vertical Solutions vs. Horizontal Platforms: Some IAM players focus deeply on specific sectors (healthcare, financial services) or use cases (customer IAM vs. workforce IAM), while others offer broad horizontal platforms. Vertical-focused vendors typically emphasize domain expertise ("We understand healthcare compliance requirements better than generalists"), while horizontal platforms stress versatility across industries. This creates a positioning opportunity based on depth versus breadth.
3. Channel Dynamics: The go-to-market approach also shapes positioning. Some incumbents like Oracle and IBM often sell direct to large enterprises with heavy consulting, while many upstarts utilize channel partners or MSSPs to reach mid-market clients. This affects messaging—partner-led solutions might emphasize ease of deployment and multi-tenant capabilities that benefit MSSPs.

While Forrester and Gartner both analyze this market, they approach segmentation differently. Forrester's methodology often emphasizes outcomes and vendor fit, placing more weight on customer success, while Gartner emphasizes integration capabilities and technical architecture. This difference explains why a vendor might be a "Leader" in one framework but not the other—highlighting why positioning shouldn't rely solely on analyst perspectives.

Four IAM Positioning Archetypes

To effectively position your IAM solution, it's crucial to understand the four main competitor archetypes and their respective strengths and weaknesses:

1. Legacy Incumbents (Microsoft, Oracle, IBM)
   
   • Strengths: Ubiquity and familiarity (e.g., Active Directory in most enterprises), deep integration with legacy systems, established support networks
   • Weaknesses: Often slow to innovate, complex architectures, frequently on-prem or hybrid (rather than pure cloud), and typically resource-intensive to manage
   • Positioning strategy: Emphasize agility, modern architecture, and lower operational overhead compared to these giants
2. Cloud-Era Enterprise Players (Okta, Ping Identity, ForgeRock)
   
   • Strengths: Cloud-native architectures, specialized IAM expertise, comprehensive identity feature sets
   • Weaknesses: Often higher standalone costs, consolidation creating uncertainty (e.g., Ping Identity and ForgeRock being merged by Thoma Bravo)
   • Positioning strategy: Highlight your focus, specialized capabilities, or cost advantages
3. Next-Gen Specialists (Passwordless providers, decentralized identity startups)
   
   • Strengths: Cutting-edge innovations in specific areas (AI-driven identity analytics, biometrics, etc.)
   • Weaknesses: Limited scope, typically requiring integration with broader IAM systems
   • Positioning strategy: Demonstrate how your solution provides similar innovation without requiring "yet another tool"
4. Consolidated Security Platform Players (CyberArk expanding beyond PAM, cloud providers like AWS)
   
   • Strengths: Single-vendor convenience, potential cost efficiencies through bundling
   • Weaknesses: Often jack-of-all-trades but master of none, particularly in specialized IAM requirements
   • Positioning strategy: Emphasize depth of IAM expertise versus their adjacency-based approach

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A strong positioning strategy changes based on which archetype you're competing against in a deal. For example, when positioning against Microsoft (a Legacy Incumbent), you might emphasize cloud-native flexibility and neutrality. As Okta's CEO noted in an industry interview: "Our neutral choice is going to win out versus Microsoft" - leveraging the advantage of being identity-focused rather than part of a broader platform play.

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Core Positioning Dimensions That Drive IAM Purchase Decisions

Technical Architecture & Deployment Models

Technical architecture is often the first battlefield for IAM positioning, but it must be framed in terms of business advantages:

1. On-Premises vs. Cloud vs. Hybrid: Position based on deployment flexibility. Against cloud-only competitors, emphasize hybrid capabilities if you have them: "We meet you where you are—on-prem today, cloud tomorrow." Against legacy on-prem vendors, highlight cloud benefits: "Continuous updates without maintenance windows, and 99.9% uptime SLA compared to the scheduled downtime of traditional solutions."
2. API-First vs. Integrated Suite: If your solution is API-first, emphasize extensibility and developer experience: "Build identity into any application with our developer-friendly platform." If you're an integrated suite, stress simplicity: "Pre-built integrations with all major applications—no coding required."
3. Implementation Complexity & Time-to-Value: Traditional IAM implementations could take months or even years. If your solution deploys faster, make this a central message: "Onboard your first application in hours, not months." For migration scenarios, emphasize coexistence tools: "Our migration toolkit automatically maps your existing roles and policies—no starting from scratch."

Economic Value Propositions

In today's budget-conscious environment, economic messaging is critical:

1. License Cost vs. Operational Cost: Incumbents often argue "lower upfront cost because it's bundled in what you already own" (e.g., Microsoft including basic IAM capabilities in enterprise licenses). Counter with TCO messaging: "While our license may be a new line item, customers see 40% lower total cost through reduced administration and fewer helpdesk tickets."
2. ROI Calculation Frameworks: Provide tangible ROI metrics based on real customer outcomes. For example, "Customers achieve 300% ROI with our solution, with payback in under 18 months through automated provisioning and reduced administrative overhead." Create an ROI calculator that helps prospects quantify savings from reducing password reset calls (which cost $70 each on average) or streamlining onboarding processes.
3. Risk Reduction Quantification: With identity-related breaches continuing to dominate security incidents, risk reduction is a powerful economic message. Verizon's 2024 DBIR confirms that stolen credentials remain among the top attack vectors. Quantify this risk: "With 38% of breaches involving stolen credentials, and average breach costs at $4.45M, our adaptive authentication demonstrably reduces this risk exposure by 70%."

Security Efficacy Messaging

Security messaging must walk a fine line between highlighting risks and avoiding fearmongering:

1. Compliance Acceleration vs. Breach Prevention: For risk-averse organizations, frame IAM as accelerating compliance: "Our solution implements Zero Trust principles out-of-the-box, mapping to 100% of CISA's identity recommendations—accelerating your compliance timeline by 6 months." For security-focused buyers, emphasize threat prevention: "According to Verizon, almost 4 in 10 breaches stem from stolen credentials—our adaptive MFA and context-based policies prevent these attacks, even if passwords are compromised."
2. Threat Detection in Identity Context: As IAM and security converge, highlight how your solution provides security intelligence: "Unlike basic IAM that only manages access, our platform detects suspicious behavior like impossible travel logins or anomalous privilege use—providing early warning of potential account compromise."
3. Zero Trust Implementation: Identity is foundational to Zero Trust ("Identity is the new perimeter"). Rather than just using the buzzword, explain specifically how your solution enables Zero Trust: "Our solution enforces continuous authentication and least-privilege access by default, fulfilling the identity cornerstone of NIST 800-207 Zero Trust Architecture."

Avoid fear-based messaging, which can undermine credibility in cybersecurity marketing. Instead, use fact-based statements with positive framing: "With our IAM, even if credentials are phished, attackers still can't access your systems—we've built in that layer of protection."

User Experience & Productivity Impact

User experience has become a critical differentiator in IAM:

1. Friction Reduction: Quantify how your solution improves the user experience: "We eliminated 15 login prompts per day through single sign-on, saving each user 90 seconds daily—which translates to 2,500 hours annually across your 10,000 employees." This seemingly small improvement multiplies dramatically at scale.
2. Administrator Experience: Highlight how you reduce IT overhead: "It takes just 5 minutes to integrate a new SaaS application via our catalog, compared to hours of manual connector configuration with legacy systems." Better admin experience translates directly to cost savings: "One customer reduced IAM administration time by 30% after deploying our solution."
3. Integration Depth vs. Breadth: Microsoft's IAM deeply integrates with Windows and Office. If that's your competition, emphasize your broader third-party support: "While Microsoft works best within their ecosystem, we provide the same seamless experience across all 1,200+ applications in our catalog, including Salesforce, Workday, and Google Workspace."

For IT administrators, messaging should emphasize efficiency: "Our admin console provides one-click provisioning to dozens of apps and real-time insight into who has access to what. You'll spend less time on manual user management and more on strategic initiatives."

For end-users, focus on convenience: "With unified identity, employees sign in once to access all their tools—no more juggling 5 passwords or calling IT for resets. Secure access becomes a convenience, not a hurdle."

Stakeholder-Specific Messaging Strategies

Messaging to Technical Evaluators

Technical evaluators need depth and specificity. Target these key groups:

1. Authentication Architects/IAM Specialists: These experts evaluate protocols, standards compliance, and architecture. Message with technical precision: "100% standards-based (SAML, OIDC, SCIM)—no proprietary lock-in, with open APIs that integrate with your existing infrastructure." They'll appreciate whitepapers with architecture diagrams and detailed specifications.
2. Security Operations Teams: SecOps cares about threat detection and response. Highlight security integrations: "Our IAM provides identity context to your SIEM, allowing your SOC to distinguish between normal access patterns and potential account takeovers." Emphasize how your solution reduces their workload through automation: "Policy-based response automatically escalates authentication requirements when suspicious activity is detected."
3. IT Operations/Helpdesk: These teams manage day-to-day identity operations. Stress reliability and administrative efficiency: "Five-nines uptime SLA with active-active architecture means no more 'login downtime' during maintenance." Migration capabilities are crucial here: "Our migration toolkit can import your existing role definitions and automate policy translation—no starting from scratch."

When discussing technical differentiators, stay focused on points that truly matter. Skip generic claims like "we are secure" in favor of specific differentiators: "Our password vault uses FIPS 140-2 validated encryption (meeting federal standards)" or "Our platform handles 10,000 authentication requests per second with sub-200ms response time, ensuring performance at enterprise scale."

Messaging to Business Decision-Makers

Business decision-makers need outcomes and strategic alignment:

1. CISO and Security Leadership: CISOs balance technical and business concerns. Position your solution in terms of risk reduction: "In a landscape where 90% of organizations experienced an identity-related security incident last year (IDSA, 2024), our IAM provides a foundation for your zero-trust strategy." CISOs also value metrics and reporting: "Our executive dashboard shows clear trends in identity risk posture, perfect for board presentations."
2. CIO/IT Directors: CIOs focus on operational excellence and enabling the business. Emphasize integration with IT roadmaps: "Our IAM will integrate with your cloud migration timeline—start with on-prem applications and move to cloud at your pace." Highlight cost efficiencies: "Customers reduce identity management costs by 40% while improving user satisfaction scores by 35%."
3. Compliance and Risk Officers: These stakeholders care about audit readiness and governance. Focus on visibility and controls: "Complete audit trails of who accessed what and when—making compliance with SOX, GDPR, and industry regulations straightforward." Emphasize automated governance: "Automated access reviews reduce policy violations by 65%, streamlining your compliance process."

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Each stakeholder requires tailored messaging that connects IAM capabilities to their specific priorities:

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Channel Partner Enablement

If you sell through partners, enabling them with effective positioning is crucial:

1. MSSPs: Managed Security Service Providers need messaging that helps them sell your solution and generate recurring revenue. Highlight multi-tenancy capabilities: "Our IAM platform was built with MSPs in mind—a single console to manage all your client instances, and role-based access so each client only sees their data."
   
   
2. VARs and Resellers: These partners need competitive differentiation and margin protection. Provide battle cards and competitive messaging: "We've prepared competitive battle cards and migration toolkits to help you displace incumbent solutions. Plus, deal registration ensures healthy margins for you."
   
   
3. Implementation Partners: System integrators care about implementation methodologies and client satisfaction. Emphasize implementation success: "Our professional services engagement model ensures predictable deployments, letting your team focus on high-value customization instead of troubleshooting."
   
   

Partner-ready content should include co-brandable slide decks, comparison sheets for common competitive scenarios, and implementation playbooks that make partners successful.

Messaging Matrix: Practical Implementation

Competitor-Specific Battle Cards

Battle cards translate your positioning into practical sales tools:

1. Structure and Components: Effective battle cards include:
   
   • Competitor overview (solution components, target market)
   • Top strengths to acknowledge (never dismiss competitors completely)
   • Key weaknesses to exploit
   • Your differentiators mapped to customer pain points
   • Common objections and counterpoints
   • Customer proof points and references

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Attacking Incumbents: When competing against legacy players, focus on innovation gaps. For example, against Microsoft:

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Defending Against Upstarts: When facing newer competitors, emphasize enterprise readiness:

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Objection Handling Framework

Prepare for common objections with rehearsed responses:

1. Technical Objections: "Your solution won't work with our legacy systems." Counter with specific integration examples: "We've successfully integrated with systems like yours at [similar customer]. Our connectors support legacy LDAP/SAML and modern OAuth flows simultaneously."
   
   
2. Economic Objections: "Your solution costs more than what we pay now." Reframe as investment vs. expense: "While our license appears as a new line item, our customers typically see 40% lower total cost through reduced admin overhead and helpdesk tickets. Let's calculate your specific ROI together."
   
   
3. "Good Enough" Objections: The most insidious objection is "what we have is good enough." Pivot from present state to future needs: "Your current system worked well when all users were on the network. But with remote work and cloud adoption, 'good enough' has become a security risk. Legacy IAM can't adequately protect identities in today's hybrid environment."
   
   

The Feel-Felt-Found approach works well for handling objections without confrontation: "I understand you feel your current IAM is fine. Many of our clients felt that way initially, but they found that as they adopted more cloud services, their manual processes became unsustainable. That's where we helped them automate and secure their identity infrastructure."

Content Strategy for Multi-Touch Positioning

IAM sales cycles average 6-12 months, requiring content for each stage:

1. Top-of-Funnel Thought Leadership: Create educational content that establishes need: "The Evolution of Identity Security: Why Traditional Approaches Fall Short in the Cloud Era" or "Identity-First Security: The Foundation of Modern Zero Trust." These pieces should align with business challenges (cloud migration, remote work) rather than directly selling your solution.
   
   
2. Mid-Funnel Comparative Content: As prospects evaluate options, provide direct comparisons: "IAM Solution Comparison Guide" with evaluation criteria that favor your strengths, or webinars like "Migrating from Legacy IAM: Best Practices and Pitfalls." This content can adapt battle card messaging into educational formats.
   
   
3. Bottom-Funnel Validation: Help prospects justify their choice with ROI calculators, reference architectures, and customer testimonials. Third-party validation (analyst reports, compliance certifications) is particularly valuable here. Video testimonials featuring similar customers saying "We replaced [Incumbent] with [Your Solution] and [achieved specific outcomes]" are extremely persuasive.
   
   

An effective editorial calendar might include:

• Month 1: Blog "Legacy vs. Cloud-Native IAM: Understanding the Trade-offs" (awareness)
• Month 2: Webinar "Evaluating IAM Solutions: 10 Questions to Ask Every Vendor" (consideration)
• Month 3: Case study "How [Client] Reduced Identity Management Costs by 45%" (decision)
• Month 4: ROI calculator launch with companion guide (justification)

This progressive approach ensures you're nurturing prospects throughout their lengthy buying journey with content that drives measurable marketing ROI.

Measuring Positioning Effectiveness

Quantitative Metrics for Messaging Success

To ensure your positioning is working, track:

1. Competitive Win Rate: Monitor win rates against specific competitors before and after implementing new positioning. A significant uptick (e.g., from 30% to 45% against a key incumbent) indicates effective messaging.
   
   
2. Deal Velocity: If your positioning is clear and compelling, prospects should move through the pipeline faster—track if sales cycle length decreases.
   
   
3. Messaging Adoption in Customer Conversations: During win interviews, note if customers cite your key messages: "Did our [specific value proposition] influence your decision?" If they volunteer your messaging points unprompted, that's a strong signal of effectiveness.
   
   
4. Content Engagement Metrics: Track which positioning-related content generates the most engagement. For example, if your "ROI Calculator" sees high usage and leads to more meetings, double down on economic messaging.
   
   

Consider creating a messaging effectiveness dashboard that combines these metrics, reviewed quarterly to refine your approach.

Qualitative Feedback Mechanisms

Numbers tell only part of the story. Gather qualitative input:

1. Sales Team Feedback: Your sales team is on the front lines. Schedule regular sessions to learn which messages resonate and which fall flat. Create a simple feedback mechanism ("Did this battle card help you win? Why/why not?") to continuously improve.
   
   
2. Customer Advisory Board Input: Have select customers review your messaging. Ask directly: "Does this value proposition resonate with your experience? What did we miss?" Their unfiltered feedback can reveal blind spots in your positioning.
   
   
3. Analyst Validation: Brief industry analysts on your positioning and request candid feedback. While they may not always agree with your approach, their market perspective can help you refine messaging to align with broader trends.
   
   

Use this feedback loop to continually evolve your messaging matrix. For example, if sales reports that a particular objection is becoming more common, update your framework to address it more effectively.

Conclusion

Effective IAM positioning requires a strategic balance between technical capabilities and business outcomes. By understanding the four competitor archetypes and tailoring your messaging to various stakeholders, you can create a messaging matrix that differentiates your solution in a crowded market.

Remember that positioning is not static—as the IAM landscape evolves with new regulations, technologies, and competitive dynamics, your messaging must adapt. The frameworks provided in this guide—from competitive archetypes to stakeholder-specific messaging—give you a foundation for developing and refining your positioning strategy.

The most successful IAM vendors don't just highlight features; they tell a compelling story about how their solution addresses the evolving challenges of identity security in today's hybrid, cloud-first world. By continuously measuring and refining your messaging effectiveness, you can break through the market noise and win against both incumbents and upstarts.

Ready to apply these frameworks to your specific IAM positioning challenges? Schedule a discovery call to discuss how we can help you develop a tailored messaging strategy that resonates with your target customers and differentiates you from the competition.

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