Which term describes cloud-hosted IAM solutions?

• A. Cloud-Based IAM
• B. Enterprise IAM
• C. Multifactor Authentication
• D. Password Synchronization

Answer: (A)

The concept being tested is how IAM is delivered and hosted. Cloud-based IAM refers to Identity and Access Management services that run in the cloud and are provided as a service (often called IDaaS). This means you don’t deploy and maintain the software on your own servers; the vendor handles infrastructure, updates, scaling, and availability, while you manage identities, access policies, and single sign-on through a cloud-based interface or API. This hosting model is what “cloud-hosted” implies.

Multifactor Authentication is a security control that strengthens login verification, not a description of where the IAM software runs. Password Synchronization describes a feature for syncing credentials across systems, not how the IAM service is hosted. Enterprise IAM is a broader term that can apply to on-premises, hybrid, or cloud deployments, but it doesn’t specifically denote cloud-hosted delivery. So the term that best fits cloud-hosted IAM solutions is cloud-based IAM.