The business case for IAM: how MSPs win over SMB decision makers

Most SMB decision makers don’t wake up thinking about identity and access management (IAM). They think about revenue, customer trust, and whether their teams can keep working without disruption. That’s where MSPs and IT service providers win or lose: not on the quality of their services, but on how clearly those controls map to business outcomes. In this article, you’ll learn how to sell IAM to non-technical SMB leaders by framing identity security as essential infrastructure—reducing downtime, limiting fraud risk, supporting compliance, and making employees more productive—without relying on fear tactics.

Start where SMB leaders already feel the pain

Use a few credible, plain-language anchors:

• Credential attacks are common. Verizon’s 2024 Data Breach Investigations Report (DBIR) lists “Use of stolen credentials” as the top action in breaches (24%), right alongside ransomware and extortion-driven activity.
• Credential incidents take a long time to unwind. IBM’s Cost of a Data Breach Report 2024 found breaches involving compromised credentials took an average 292 days to identify and contain—roughly 10 months of drag, disruption, and uncertainty.
• Brand trust is fragile. A Vercara survey in 2023 reported 75% of U.S. consumers would stop purchasing from a brand after a cybersecurity issue.

Then deliver the “fix” in one sentence that reframes security as business strategy:

“We’re going to make it unprofitable to attack you.”

That line works because it’s not fear. It’s economics. It tells the buyer you’re reducing attacker ROI by removing the easiest paths: password reuse, weak MFA, unmanaged app access, and inconsistent offboarding.

Translate IAM into outcomes the customer can measure

Use these points instead.

Financial impact

Business continuity and reputation

Better user experience

Day-one access is a hidden cost center

Handle objections like a guide, not a debater

“We’ve never been attacked”

Then point back to the reality: credential-driven breaches can remain unresolved for months because it can be difficult to distinguish legitimate behavior from malicious use of real accounts.

“We’re too small to be a target”

Explain that credential stuffing, phishing, and business email compromise scale because they reuse the same playbooks across thousands of SMBs. If you want a credibility boost, you can reference that Verizon DBIR explicitly analyzes breaches for small organizations (1–1,000 employees) across industries—SMBs are not “off the map.” (Check out our article on the myth of “too small to target”.)

“We already have Microsoft”

A better approach:

1. Agree: “Microsoft provides decent baseline controls, especially in Microsoft 365-first environments.”
2. Reframe: “The question is whether your identity controls cover every app your staff uses, with consistent policy and visibility.”
3. Offer a proof path: “Let’s map your actual app stack and sign-in paths and identify gaps.”

Then point out the two key weaknesses they can’t shake with Microsoft: latency in both sign-in logs and security policy updates, which can take up to 24 hours to take effect. It’s a no-brainer that latency issues like this are unacceptable in the context of a security breach. (Read more about latency issues, our popular comparison of Microsoft vs Okta for MSPs, or read about a leading MSP’s perspective on the “free Microsoft tools”.)

And with Okta delivered through ZeroTek, there’s no license pool to maintain. Licenses costs are usage based and charged monthly to support easy scaling and straightforward cash flow management.

Create urgency without fear

Use “why now” triggers that sound reasonable

• Growth: “You’re adding apps and headcount. Identity sprawl grows faster than IT.”
• Insurance and compliance: “Most questionnaires now ask about MFA, SSO, and access.”
• Operational efficiency: “Reducing password resets pays back every month.”

Swap fear language for resilience language

Use phrases that position the customer as capable and proactive:

• Instead of “You’re exposed,” say “You’re in a strong position to close a few critical gaps.”
• Instead of “Act now or else,” say “Let’s put a plan in place before you’re forced to do it under pressure.”
• Instead of “This could destroy you,” say “The most resilient companies invest before an incident turns into a crisis.”

Offer a time-bound, low-friction next step

Give them an action that’s easy to say yes to:

Offer a complimentary IAM posture review valid for the next 14 days.
Deliverables should be business-readable:

• top 5 identity risks (plain language)
• top 5 quick wins (30-day plan)
• a phased roadmap (30-90 days)

A simple 4-step sales motion MSPs can repeat

1. Align to the buyer’s KPIs
   Ask: “What are your top three KPIs this year?” Then connect Okta IAM to uptime, productivity, and risk control.
2. Pitch the outcome, then the controls
   Outcome: “Reduce downtime and fraud risk.”
   Controls: SSO, MFA, contextual session policies, and automated lifecycle management.
3. Show day-to-day wins
   “Eliminate password resets. Fast secure access to business tools. Faster and cleaner onboarding and offboarding.”
4. Propose the review and roadmap
   Keep the commitment small and the value obvious.

If you want a repeatable way to sell IAM as essential business infrastructure, start with a guided security posture review.