How to choose the most cost-effective PAM licensing model

Anna Surovova

Global Sales Director at Axidian

Let’s be clear: the problem didn’t end with the pandemic. What started as an emergency response has turned into a permanent operating model.

Today, IT and security teams manage hybrid environments, cloud infrastructure, external administrators, and third-party vendors on a daily basis.

As a result, the number of privileged users continues to grow and so does the attack surface.

Human factors remain the primary cause of security incidents — compromised or weak credentials account for 22% of breaches, while phishing is responsible for another 16%.

Privileged access is no longer limited to a small group of internal administrators. It now includes contractors, service providers, DevOps teams, and vendors who require temporary or recurring access to critical systems. This makes privileged access management (PAM) a core security control rather than an optional add-on.

Why cost-effective PAM matters more than ever

Security budgets in 2025 are under constant pressure. Organizations are expected to reduce risk, support audits, and manage complex access scenarios — without expanding headcount or overspending on tools that don’t match real usage patterns.

This is where licensing flexibility becomes critical. A PAM solution should align with how privileged access is actually used, not force organizations into rigid or oversized licensing models. Axidian Privilege was designed with this reality in mind, offering licensing options that scale with operational needs rather than theoretical maximums.

Axidian Privilege licensing models: flexibility instead of overprovisioning

Axidian Privilege offers two licensing models that reflect different privileged access patterns. Both are designed to help organizations control costs while maintaining full PAM functionality.

Option 1: licensing based on privileged users and resources

This model fits organizations with a stable group of administrators and a predictable infrastructure footprint.

The following license types apply:

  • User license
    Grants a specific number of users the right to access systems using privileged credentials. Licenses can be reallocated between employees or contractors, which is especially useful in environments with staff rotation.
  • Resource license
    Covers the number of servers, hosts, or systems that privileged users can access. Resource licenses are bundled with user licenses and can be extended if infrastructure grows.

When this model makes sense

This approach works well for organizations with:

  • Fixed internal admin teams
  • Long-term contractors
  • Clearly defined infrastructure boundaries

License reallocation ensures that onboarding and offboarding do not require constant license purchases.

Option 2: licensing based on privileged sessions

This model reflects a very different reality — one that has become increasingly common.

Instead of limiting users or systems, licensing is based on the number of simultaneous privileged sessions. The number of PAM users and registered resources is not restricted.

When this model makes sense

Session-based licensing is ideal for organizations that:

  • Work with many contractors or vendors
  • Grant access occasionally or on demand
  • Rarely have many privileged sessions active at the same time

This approach avoids paying for dormant users or rarely used accounts, while still maintaining full control, auditing, and session recording.

Choosing the right PAM licensing model in practice

There is no “one size fits all” approach to PAM licensing in 2025. Some organizations benefit from a user-based model, others from session-based licensing — and some combine both across different environments.

The key is visibility. Understanding who needs access, how often, and under what conditions allows organizations to choose a licensing model that matches real usage, supports audits, and avoids unnecessary costs.

Axidian Privilege enables this flexibility while still providing core PAM capabilities: credential protection, session monitoring, access control, and audit readiness.

Comparison

Licensing model based on privileged users and resourcesLicensing model based on privileged sessions
The number of users and resources (servers etc)Limited by the license
Not limited
The number of simultaneous connectionsNot limitedLimited by the license
How to calculate the licensesBy the number of employees who connect through PAMBy the planned number of active sessions which PAM should open (as a rule, it is required to have an experience of using PAM to correctly evaluate the number of sessions) 
How to reallocate licenses between usersIt is required to recall all access from one employee and give access to anotherNo reallocation is required

If you want to have a quotation for your project, contact us.

About the Author

Anna Surovova

Global Sales Director at Axidian

Anna Surovova, Global Sales Director at Axidian, 9 years in International relations and IT Security. Master degree at Oriental and African Studies. Projects for 20+ customers from BFSI, manufacturing, IT and government industries