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Analyst's View: Passwordless Authentication for Enterprises

September 11, 2024

Alejandro Leal

Driven by the security risks and inconvenience associated with passwords, organizations are increasingly moving towards eliminating them altogether. Passwordless authentication solutions have emerged as a compelling alternative, offering enhanced security features and improved user convenience compared to traditional methods. Although passwordless options have been around for a while, some recent solutions are gaining traction with enterprises and even consumer-facing businesses.

1 What is Passwordless Authentication for Enterprises?

Passwordless authentication is a security approach that eliminates the need for users to log in with a username and password. Instead, it uses alternative methods to verify identity, aiming to enhance security and simplify the user experience. Adopting passwordless authentication can lead to significant cost savings for enterprises. It reduces the burden on IT support related to password issues and decreases the potential financial losses from data breaches linked to compromised passwords.

Passwordless authentication methods are reshaping security paradigms within enterprises by eliminating the traditional reliance on passwords. However, passwordless authentication can be done in a number of ways. Passwordless systems typically rely on possession factors, such as certificates, hardware tokens, and authentication devices, as well as inherence factors, including physical and/or behavioral biometrics to securely verify a user’s identity without the need for traditional passwords.