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How Microsoft Cut 87% Costs with Passwordless Authentication

Explore how Microsoft achieved an 87% cost reduction by implementing passwordless authentication. Learn about the impact on cybersecurity and the technology now!
by Rista Fathika
November 29, 2023

In a groundbreaking move, Microsoft has revolutionized cybersecurity and reduced costs by implementing Microsoft passwordless authentication. By discarding traditional passwords, Microsoft achieved an impressive 87% reduction in authentication-related expenses. 

This innovative approach not only enhances security by mitigating the risks associated with password-based breaches but also streamlines user access, and cuts off the support costs for password resets and account recovery.

The shift to passwordless authentication aligns with Microsoft's commitment to bolstering both the resilience and cost-effectiveness of digital security. Setting a compelling precedent for organizations aiming to enhance their cybersecurity posture while optimizing operational expenditures.

Microsoft’s IT Landscape and Challenges

Challenges regarding security, software vulnerabilities, and managing a diverse range of products are the reasons behind Microsoft goes passwordless. One notable challenge is the constant need to address security threats.

As a major player in the tech industry, Microsoft faces persistent cybersecurity concerns, including potential vulnerabilities in its software and the need to protect users from evolving cyber threats. Moreover, as Microsoft continues to expand its cloud services.

Therefore, managing the transition to cloud computing and ensuring the security and reliability of services like Microsoft Azure presents ongoing challenges. This includes addressing issues related to data privacy, compliance, and the scalability of cloud infrastructure.

To make a balance between employee productivity with business security will begin with identity protection. Especially because employees and even clients use multiple devices or apps for work. Including sharing documents online by email or apps.

Moreover, they switch between personal and work-related apps and devices throughout the day. Therefore, this has opened the opportunity for sophisticated cybercriminals. Hackers know that users often use the same weak password for all their accounts. 

These vulnerabilities are targets for sophisticated cyber criminals. Password spray is a method of trying common passwords against known account lists. Furthermore, by using phishing methods to trick users into giving the password. 

How Microsoft Implemented Passwordless Authentication

To have stronger security, more productive users, and reduce cost over time, passwordless solutions Microsoft includes the Microsoft Authenticator App and Windows Hello. However, for select partners, Microsoft uses FIDO2 security keys. There are four steps of implementing passwordless authentication Microsoft that any business could follow as well. The steps are:

  1. Step 1: Choose the Strategy

Microsoft passwordless authentication methods allow more than one biometric factor to be used for authentication. This way, people can have options they prefer while the company still applies a more secure authentication system.

  1. Step 2: Safe in the Cloud

Microsoft Azure AD (Active Directory) stores important data regarding security intelligence and user behavior analytics in the Cloud. Therefore, people’s identities will be safer and easier to recover in case there is a breach.

  1. Step 3: Multi-Factor Authentication

Applying more than one-factor verification will further reduce any account compromise. The possession of the device is one factor and then, using passwordless authentication such as biometrics will be the stronger factor. Thus, removing passwords and their risk altogether.

  1. Step 4: Do the Test

Test the new authentication system to ensure its capability and sophistication. Ask any users or groups deemed riskiest. That way, it can be seen if there is any improvement needed or if any matter needs more attention. 

Financial Impact of Passwordless Authentication at Microsoft

As mentioned above, frequently forgotten passwords are expensive. The expenses are password reset, productivity lost due to a user can not log in, and also for the Helpdesk assistance to the user to reset their password.

According to their estimation, Microsoft spent around $3 million per year in hard costs. Additionally, also spent approximately $6 million per year in lost productivity. Those are huge expenses to bear.

How Microsoft Achieved an 87% Cost Reduction

Since Microsoft applied the passwordless system to the users, most users don’t even use a password for authentication. Therefore, the cost is reduced but the company and the user get better protected.

Overall, Microsoft has reduced the costs above up to 87 percent. A very high achievement. The good side effect of that achievement is that the attacker’s cost is getting higher. Therefore, they less targeted the company.

Technological Innovations and Cybersecurity Measures

The advance of technology also brings out the sophistication of cyberattacks. Therefore, Microsoft made a new initiative for protection called Secure Future Initiative (SFI). It is focused on defenses based on AI and software engineering to protect people from cyber threats.

  1. AI-Based Defense

Microsoft uses AI to analyze cyber threats, including analyzing and collecting customer data from multiple sources. Therefore, AI can find the right veiled data used in cyberattacks. Moreover, AI can work at machine speed and skill to detect and analyze to prevent any attack.

  1. New Engineering Advances

This means that there will be new advances in software engineering. Such as using technology to design, build, and then test and operate the system. Microsoft uses “dynamic Security Development Lifecycle” or “dSDL” to reinforce the protection system.

Multifactor authentication or MFA is also one of the important processes to give customers more secure protection. Including using the Cloud platform to secure data.

  1. Stronger Collaboration

So far, private sector and tech companies have played a major role in cybersecurity. However, cyberattacks also happened to many governmental institutions as well. Therefore, cybersecurity needs a stronger collaboration between the government and private sector to deal with it.

Future Implications and Industry Trends

As cyberattacks get more sophisticated in form, passwords are no longer a secure method to protect any account or data. Especially because of the vulnerability of forgetting them and then having to reset them all over again.

Moreover, people tend to reuse the same password for multiple accounts. This will make it easier for cyberattacks that cause breaches of data and important information. That is why people need a more advanced and more secure authentication method.

Passwordless authentication such as biometrics is more applicable in many businesses. People also getting more comfortable in using them. Many smart devices already provide fingerprint scanning or even facial recognition as their authentication methods.

Therefore, businesses should help their employees or customers to get accustomed to passwordless authentication. Microsoft passwordless method is already in place and started to educate its users.

The passwordless authentication Microsoft has demonstrated not only transformed the system to become more secure. They also proved a cost saving of up to 87%. That is why businesses should be aware of this passwordless authentication to save and secure themselves.

The Next Level Protection: Fazpass Seamless Authentication!

In a rapidly evolving digital landscape, it's essential to question the safety of OTPs. Fazpass offers a robust, convenient, and budget-friendly alternative that's changing the game. With a track record of 99.9% uptime dating back to 2016, Fazpass has solidified its reputation for reliability. But it doesn't stop there; Fazpass is committed to constant innovation, ensuring its services continually adapt to meet all your authentication needs. 

By choosing Fazpass, you can effortlessly manage all your authentication requirements in one user-friendly platform, providing a seamless and secure experience without straining your budget. What sets Fazpass apart is its alignment with FIDO standards, which are designed to elevate online security by introducing more resilient authentication methods that protect against phishing and other cyber threats.

Say farewell to the vulnerabilities associated with OTPs and safeguard your online accounts with Fazpass Passwordless Authentication!


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