What is the recommended option for handling on-site identity needs in an organization using Active Directory for AAA services?

Using an on-premise third-party identity service is a recommended option for handling on-site identity needs in an organization utilizing Active Directory for authentication, authorization, and accounting (AAA) services. An on-premise third-party identity service can seamlessly integrate with Active Directory, allowing organizations to maintain control over their identity management processes while also leveraging additional features and capabilities that may not be natively available in Active Directory.

This solution can enhance security by keeping sensitive identity information within the organization’s own data environments, reducing the risk associated with sending this information to cloud-based services. Furthermore, using a third-party service can provide specialized identity management features such as more advanced federation, identity governance, or multi-factor authentication that can improve overall security without compromising on accessibility for internal users.

Considering the other options, implementing cloud-based identity services may introduce latency or compliance issues, especially if sensitive data is involved. Switching to a different directory service could disrupt existing infrastructure and user access in a way that may not be beneficial for the organization. Limiting access to the internal network only does not address identity management comprehensively and may hinder legitimate business operations that require access to necessary resources.