Fortinet’s IAM and PAM Dominance: Thriving Amid Industry Shifts

[ggenard]

Introduction

In August 2025, Palo Alto Networks (PANW) announced its $25 billion acquisition of CyberArk, set to close in 2026. While this move has drawn attention, it highlights Fortinet’s strategic advantage in Identity and Access Management (IAM) and Priviledge Access Management(PAM), where its comprehensive, native solutions within the Security Fabric outshine CyberArk’s offerings and position Fortinet as a market leader. This blog explores how Fortinet’s robust, converged platform capitalizes on this industry shift, rendering the acquisition a minor distraction.

The CyberArk Acquisition: A Costly Distraction for PANW

Palo Alto Networks’ acquisition of CyberArk aims to strengthen its identity security portfolio, but it’s a high-stakes gamble that has already met market resistance, with PANW’s stock declining significantly post-announcement. The deal, not expected to close until late 2026, faces substantial integration hurdles, including aligning CyberArk’s PAM tools with PANW’s sprawling ecosystem (e.g., Prisma, Cortex). This complex merger risks diverting resources from PANW’s core networking and cloud security strengths, potentially creating gaps in innovation and customer support. For Fortinet, this is not a threat but a golden opportunity to demonstrate its self-sufficient, unified approach to IAM and PAM, free from the burdens of costly acquisitions and integration challenges.

Fortinet’s Comprehensive IAM and PAM Solutions: Surpassing CyberArk

Fortinet’s Security Fabric delivers a seamless, cloud-native platform that integrates IAM, PAM, and networking, offering a broader and more cohesive solution set than CyberArk’s specialized PAM focus. Unlike CyberArk, which relies heavily on third-party integrations for comprehensive security, Fortinet’s native solutions provide end-to-end visibility, automation, and scalability, addressing modern enterprise needs with unmatched efficiency. Here’s how Fortinet’s offerings overtake CyberArk’s capabilities:

Identity and Access Management (IAM)

• Core Solution: FortiAuthenticator powers Fortinet’s IAM with centralized authentication, multi-factor authentication (MFA) via FortiToken (hardware or mobile), and single sign-on (SSO) supporting modern protocols like SAML, OAuth, and OIDC.
• Advantages Over CyberArk: While CyberArk’s Identity Security Platform includes SSO and MFA, it’s primarily an add-on to its PAM core, lacking the deep network integration Fortinet offers. FortiAuthenticator’s zero-trust access, passwordless authentication, and self-service portals for guest and certificate management provide a more flexible and user-friendly experience. Its ability to integrate with existing directories (e.g., Active Directory, LDAP) and deploy across on-premises, VM, or cloud environments ensures scalability for hybrid and multi-cloud setups, surpassing CyberArk’s narrower focus.
• Market Leadership: Fortinet’s IAM is a key component of its FortiIdentity Cloud contributing to its position as a Leader in the 2025 Gartner Magic Quadrant for Single-Vendor SASE Platforms, where identity-driven Zero Trust Network Access (ZTNA) is critical. With Q2 2025 cybersecurity revenue up 14% year-over-year to $1.63 billion, Fortinet’s IAM adoption reflects its enterprise appeal.

Privileged Access Management (PAM)

Core Solution-FortiPAM-as-a-Service, part of the FortiIdentity Cloud, delivers cloud-native PAM with automated credential rotation, session monitoring, continuous zero-trust verification, and real-time auditing.

Why FortiPAM is Better?- CyberArk’s PAM solutions, such as Privileged Access Security and Endpoint Privilege Manager, excel in credential vaulting and session isolation but require complex integrations for broader security insights. FortiPAM, by contrast, is natively integrated with FortiSIEM, enabling automated threat correlation and remediation across the Security Fabric. This eliminates the need for external SIEM dependencies, a common requirement in CyberArk deployments. FortiPAM’s lightweight, cloud-native design supports dynamic environments (e.g., cloud, OT/IT convergence, DevOps) with minimal administrative overhead, offering a more streamlined alternative to CyberArk’s resource-intensive setup. Additionally, FortiPAM’s AI-driven analytics enhance privileged account protection, addressing emerging threats like machine identity exploits more proactively.

Comprehensive Features- FortiPAM delivers advanced capabilities such as just-in-time access, behavior-based anomaly detection, and built-in compliance reporting for GDPR, NIST, and ISO 27001—meeting or even surpassing CyberArk’s feature set. Unlike CyberArk’s standalone PAM approach, FortiPAM is natively integrated into the Fortinet Security Fabric, seamlessly working with FortiGate firewalls, FortiWeb, FortiEDR, and FortiGuard Labs to provide a unified defense strategy. As for Palo Alto Networks, while they may eventually attempt similar integrations, history shows these efforts often face delays and complexity—making their approach a likely fall-through proposition rather than a reliable solution.

Market Momentum- The global PAM market is projected to grow from $4.5 billion in 2025 to $29.88 billion by 2034 (CAGR ~23.6%). Fortinet’s “identity convergence” approach—blending PAM, IAM, and Identity Governance—positions it as a leader, particularly for organizations seeking unified solutions over CyberArk’s specialized tools.

Fortinet’s Strategic Advantage in the Wake of the Acquisition

The PANW-CyberArk acquisition creates potential disruptions for their customers, including compatibility issues and delayed feature rollouts during the integration phase. Fortinet, unencumbered by such challenges, offers a stable, self-reliant alternative. FortiPAM-as-a-Service fully replaces the capabilities of the former Fortinet-CyberArk integration, ensuring continuity for existing customers while attracting new ones seeking a unified platform. Fortinet’s Security Fabric provides a key differentiator: a single, cost-effective solution that converges IAM, PAM, and networking, delivering superior value compared to CyberArk’s fragmented, PAM-centric approach.

Fortinet’s solutions also cater to a wider range of use cases:

• Enterprise Scalability: FortiIdentity Cloud’s cloud-native delivery supports large-scale deployments across multi-cloud and hybrid environments, outpacing CyberArk’s slower cloud pivot.
• Mid-Market Appeal: Fortinet’s cost-effective pricing and simplified administration make it ideal for mid-market and branch offices, where CyberArk’s complexity can be a barrier.
• AI and Automation: FortiPAM’s AI-driven threat detection and automation (e.g., behavior analytics, automated remediation) align with 2025’s demand for securing machine identities and APIs, areas where CyberArk’s legacy focus lags.

Fortinet’s Forward-Looking Strategy

Fortinet’s Q2 2025 earnings underscore its commitment to enhancing FortiPAM and FortiIdentity Cloud, with zero-trust PAM advancements reducing reliance on third-party tools. Unlike PANW, which faces acquisition-related costs and distractions, Fortinet drives organic innovation, ensuring agility and customer trust. Moving forward, Fortinet is well-positioned to:

• Expand FortiPAM’s AI capabilities to lead in machine identity security.
• Strengthen its SASE dominance, leveraging IAM and PAM for enterprise zero-trust adoption.
• Consider strategic partnerships with other PAM vendors (e.g., Delinea, BeyondTrust) to complement its native solutions, though FortiPAM’s robustness may render this unnecessary.

Conclusion

The Palo Alto Networks-CyberArk acquisition, while notable, is a costly and uncertain move that pales against Fortinet’s strategic clarity. With its Security Fabric, FortiIdentity Cloud, and leadership in SASE, Fortinet delivers a superior, converged IAM and PAM solution that surpasses CyberArk’s offerings in scope, integration, and efficiency. As the cybersecurity landscape evolves, Fortinet’s unified, AI-enhanced platform positions it to dominate the IAM and PAM markets, delivering unmatched value to enterprises and mid-market customers alike in 2025 and beyond.