The Hidden Costs of PAM: Why Smaller Companies Are Struggling

Written by Sean Blanton on September 4, 2025

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When it comes to implementing and managing privileged access management (PAM) solutions, small- to medium-sized businesses (SMBs) face a unique set of challenges. Unlike large enterprises with dedicated security teams and extensive budgets, SMBs often struggle with issues like costs, complexity and resource constraints, maintaining the right security posture, and scalability.

For many SMBs, the perception of traditional PAM solutions is a major barrier. They often view PAM as too expensive, too complex to manage with their limited resources, and too difficult to integrate and maintain without disrupting daily operations.

This misconception leads to a dangerous choice: either forgo PAM altogether, leaving the organization vulnerable, or opt for less comprehensive, manual approaches that remain prone to error and inefficiency. It’s a classic dilemma where the cure seems worse than the disease, leaving many companies exposed to unnecessary risks.

PAM Challenges

High Costs

Traditional PAM solutions are expensive and geared toward enterprises who can often manage the high licensing fees and infrastructure costs associated with hardware, servers, and maintenance. Other hidden costs such as implementation services and training can inflate the total cost of ownership.

Complexity and Resource Constraints

Small IT teams frequently encounter a steep learning curve with traditional PAM systems. Due to the lack of specialized expertise, effective deployment, configuration, and ongoing management is a challenge. In addition, the burden of manual auditing for security and compliance requirements remains tedious and prone to error.

Maintain Security Posture

Lack of staff or automated tools for continuous monitoring of privileged sessions make it hard to detect anomalies and respond swiftly to threats. It’s also difficult to consistently enforce the principle of “least privilege” and maintain a clear grasp of access requirements.

Scalability

A basic PAM solution might address initial business needs, but the inability to scale can quickly turn into a major bottleneck during rapid expansion. The result is a costly and disruptive overhaul of the entire security infrastructure, undermining the efficiency and security it was meant to provide.

PAM for Everyone: Making Enterprise-Grade Security Accessible

At JumpCloud, we’ve democratized the legacy PAM market by transforming how privileged access is managed. We make it accessible and manageable for organizations of all sizes, including SMBs, so that all companies can achieve the highest levels of protection without unnecessary complexity or prohibitive costs.

How We Do It

  • Privileged access for all critical assets. Robust access controls for cloud providers, databases, servers, and applications to ensure every action is recorded and audited with customizable policies to prevent misuse and errors.
  • Secure browsing, built-in. Secure all user activity with a browser-in-browser access experience. Tightly monitor and control all privileged user activity by removing extensions and preventing data downloads with a browser-based gateway and monitored, isolated sessions.
  • No need for a VPN. JumpCloud’s integration of VaultOne’s unique architecture allows access into crucial resources without the need for a traditional VPN, reducing costs while increasing security for users.
  • Radically reduce cyber threats. Automatically eliminate lateral movement threats and reduce your attack surface with granular controls combined with continuous monitoring to further reduce internal and external threats targeting critical resources.
  • Scalable security for growing organizations. This acquisition enables JumpCloud to offer an end-to-end scale of authentication security. From password management to passwordless, and now privileged access, to cover every type of access organizations need as they scale. 
  • Compliance and audit readiness. Confidently comply with regulations and improve audit response time with detailed session logs and access reports.
  • Modern and democratized. PAM and a resilient security posture is no longer limited to the largest enterprises. JumpCloud makes it modern, cloud-friendly, and accessible to organizations of all sizes.


See the Power for JumpCloud PAM for Yourself

Don’t let your perception of traditional PAM solutions get in your way. 

The best way to understand the power of the JumpCloud PAM solution is to experience it for yourself. Start your free trial today, or connect with a JumpCloud representative to discuss your specific needs.

JumpCloud

PAM For The People

Down with Gatekeeping! Discover a Modern Approach to PAM That’s Accessible to All.

Sean Blanton

Sean Blanton has spent the past 15 years in the wide world of security, networking, and IT and Infosec administration. When not at work Sean enjoys spending time with his young kids and geeking out on table top games.

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