Both are free. One of them AWS itself recommends you stop using for people.
IAM users were the original way to give a person access to AWS. IAM Identity Center is what AWS now recommends instead. Here is exactly why, and when a long-lived IAM user is still the right call.
Temporary, short-lived credentials issued per session, one identity across every account in the Organization
Simple, works in a single account with no Organizations setup required
| Criteria | IAM Identity Center | IAM Users |
|---|---|---|
| Credential Lifetime | Short-lived, temporary session credentials | Long-lived access keys and passwords until manually rotated or deleted |
| Scope | One identity, centrally managed, usable across every account in an AWS Organization | Scoped to a single AWS account by default |
| AWS's Current Recommendation for People | Yes, this is AWS's recommended approach for human/workforce access | No, AWS recommends against long-lived IAM user credentials for human access where avoidable |
| External Identity Provider Integration | Yes, connects to Okta, Entra ID, Google Workspace, and other SAML/SCIM providers | Not natively, requires federation setup done separately |
| Requires AWS Organizations | Yes | No, works in a standalone account |
| Good Fit For | Human users, especially across multiple accounts | Specific machine-to-machine or legacy use cases where a role or Identity Center login genuinely can't be used |
| Pricing | No additional charge | No additional charge |
An IAM user's access key doesn't expire on its own. If it leaks, in a public GitHub repo, a laptop breach, a misconfigured CI pipeline, it remains valid until someone notices and manually revokes it. Identity Center's short-lived session credentials shrink that exposure window dramatically by design.
When someone leaves, disabling their IAM Identity Center identity once cuts off access everywhere. Disabling access for someone with individual IAM users scattered across several accounts requires remembering to find and act on every one of them, and it's a common gap a real audit finds.
Neither option carries an AWS service charge on its own. The real tradeoff is operational and security posture, not budget, which makes the recommendation to prefer Identity Center for human access an easy call in almost every case.
These comparisons are a starting point. Every architecture is different. Contact us for tailored AWS security assessments and architectural guidance.