Identity management software operates as a kind of broker (i.e. on behalf of) between all individual systems that store personal data that identity management is supposed to reconcile. The software usually works as a process on dedicated hardware or software (such as an application within an application server). This software is referred to as an identity management system.

Identity management systems (IMS) refer to an information system and technologies for cross-company or cross-network identity management. Data such as directories, databases etc. are stored in the identity management systems. Important systems for companies are

• Metadirectory: Directory service for storing personal employee data
• Virtual Directory: Directory service for security architecture with IDs, attributes and other requirements (NDS, eDirectories, SAP systems, active directories) - in accordance with Identity Management in SAP
• Data sources from application-specific databases, e-mail systems or HR department software
• Identity management system as software
• Identity and access management systems (IAM) for assigning a digital identity to individuals and maintaining, updating and monitoring it throughout the access lifecycle

Identity management is an administrative area for identifying individuals in a system. It controls access to resources within the system. This is done via user rights and restrictions. In identity management (IdM), these parameters are compared with the defined identity.

The most important identity management tools are identity and access management tools (IAM tools), i.e. tools with identification management and lifelong management of digital identities. The tools map the access authorizations of entire companies and ensure the company's own and external compliance guidelines. Important technologies are

• Password management tools
• Provisioning Software
• Apps to enforce security policies
• Monitoring / Reporting Apps
• Identity repositories

IAM tools are available both for on-premise systems such as Microsoft SharePoint and for cloud-based systems such as Microsoft 365. In addition to commercial products, there are also open source identity management alternatives that involve lower investment costs.

According to the Identity Management Wiki, the definition of identity management is the conscious and targeted handling of data:

• Identity
• Anonymity
• Pseudo-anonymity

One example is the identity card as a form of identification prescribed by the state.

As Identity Management Microsoft, Azure Active Directory (Azure AD) in particular is a proven tool - in the sense of Identity Management Azure. It is a complete solution for identity and access management. The integrated security of Azure AD protects companies with a seamless identity solution. Forefront Identity Manager is also a software product for government identity management. This identity management solution includes Microsoft identities, login credentials and user groupings.