Identity types

External Account

Diagram representing a glossary term in Oasis Security, illustrating key concepts in non human identity management

What is an External Account?

In the context of identity and access management, an External Account refers to a digital identity managed by an external identity provider (IdP)—such as Microsoft Entra ID (formerly Azure AD), Google Identity, or Okta—that is granted access to resources in a third-party environment. Unlike local or native accounts, External Accounts rely on federated authentication protocols (e.g., SAML, OIDC) to enable Single Sign-On (SSO) between systems. Increasingly, Non-Human Identities (NHIs)—such as service accounts, API keys, and automated workloads—leverage External Accounts to authenticate across cloud platforms, streamlining machine-to-machine interactions without relying on static credentials.

Why is it important?

External Accounts are foundational to enabling secure, scalable access across hybrid and multi-cloud environments. They allow organizations to centralize identity governance while maintaining interoperability between disparate platforms. However, their use by NHIs introduces complex risks. Unlike human users, NHIs often lack interactive oversight, operate continuously, and are more susceptible to over-provisioned permissions and weak credential hygiene. Misconfigured or orphaned External Accounts can become unmonitored attack vectors, enabling lateral movement, privilege escalation, or persistent access by malicious actors. A notable example includes the 2024 AWS credential breach, in which stolen External Account credentials enabled cross-cloud ransomware deployment across 230 million environments.

What are common applications or use cases?

In practice, External Accounts are commonly used to facilitate secure access between automated systems. For example, a Kubernetes workload in Azure might use a Microsoft Entra ID service principal (an External Account) to access Google Cloud’s Artifact Registry without embedding static API keys. Similarly, a GitHub Actions runner can authenticate to AWS using OpenID Connect via an External Account, reducing credential sprawl. These integrations support CI/CD pipelines, data synchronization tasks, cross-cloud storage access, and third-party SaaS integrations.

What is the connection to NHIs (Non-Human Identities)?

External Accounts are increasingly the authentication mechanism of choice for NHIs due to their compatibility with federated identity models and support for short-lived credentials. However, their lifecycle is often decoupled from the NHIs they serve. This can lead to orphaned accounts, stale permissions, and security blind spots. Organizations that fail to align NHI and External Account lifecycles risk privilege creep, unmanaged access, and non-compliance with standards like NIST SP 800-207 or DORA. Furthermore, External Accounts used by NHIs are rarely subject to behavioral monitoring, allowing malicious use to go undetected.

Are there any notable industry data, trends, or standards?

Yes. Industry research shows that NHIs outnumber human identities by a factor of 20, and this number is projected to grow by 20% annually. According to a 2024 study, 63% of NHIs have excessive permissions, while 34% of organizations lose visibility into External Accounts after decommissioning the associated workload. Regulatory frameworks such as GDPR, HIPAA, PCI-DSS, and DORA now explicitly require controls over machine identities, including periodic audits, credential rotation, and access logging. Leading cloud providers are shifting toward passwordless authentication for NHIs through mechanisms like OIDC federation and X.509 certificates, reducing reliance on long-lived secrets.

What is the broader impact or takeaway?

As organizations adopt multi-cloud architectures and scale automation, External Accounts serve as critical enablers of secure interoperability for NHIs. However, they also represent a growing attack surface that must be managed with the same rigor as human identities. Enterprises must implement unified lifecycle management, enforce least privilege, monitor behavioral anomalies, and adopt zero-trust principles across all NHI-External Account interactions. Doing so not only strengthens security posture but also ensures operational continuity and regulatory compliance in increasingly complex digital ecosystems.