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IRS Selects Cayosoft to Replace Quest Software

This large US federal agency chose Cayosoft to modernize their identity systems with performance and resiliency they could trust.

Challenge

The Internal Revenue Service (IRS), a mission-critical, security-sensitive federal agency, faced mounting pressure to modernize its identity infrastructure. Its hybrid Microsoft environment, anchored by Active Directory, had become too complex for outdated tools built on decades-old architecture. The agency needed a more resilient, secure, modern solution to meet evolving operational and cybersecurity demands.

Solution

The IRS turned to Cayosoft Enterprise Suite to modernize its identity infrastructure, the only platform built to manage, monitor, and recover Microsoft identities in hybrid environments. Cayosoft replaced outdated tools with one resilient solution, streamlining operations, hardening security, and enabling instant recovery. With close collaboration and white-glove support, the IRS deployed quickly and gained automation, compliance, and control of its mission demands.

Organization Profile:

IRS

The IRS

The Internal Revenue Service (IRS) is the revenue service for the United States federal government, responsible for administering the Internal Revenue Code. It processes over 260 million tax returns annually, collects over $4 trillion in tax revenue, and serves individual taxpayers and business entities.

  • Employees: ~80,000
  • Primary Systems: Active Directory, Microsoft Exchange, Microsoft 365
  • IT Scope: Multi-forest AD environment supporting thousands of mission-critical applications and secure user identities across departments and geographies
For the IRS, security, efficiency, compliance, and stability are non-negotiable, particularly when managing digital identities that underpin access to financial systems, taxpayer data, and federal resources.

The Catalyst for Change

The Trigger: An internal audit questioned the value of continuing with legacy tools. Costs were rising, while the tools lagged on security, scalability, efficiency, and modernization, forcing the agency to reconsider its path forward.

The federal government changed. It initiated tighter scrutiny of operational efficiency and waste. For nearly 20 years, the IRS relied on Quest Software’s legacy tools, but as its hybrid identity environment grew, cracks began to show. This moment forced the IRS team to reevaluate its legacy dependency.

What they found confirmed their suspicions:

  • Legacy tools were built on 20-year-old architecture and are not suited for hybrid environments
  • Scaling was impossible
  • Costs kept rising
  • Support was slow and reactive
  • Outages became more frequent
  • Deployment complexity had grown

“At first, I was offended—they wanted me to justify our legacy tools. But once I looked around, I realized we were stuck in the past. Cayosoft is the modern solution that we can grow with.”

— IRS Systems Architect

Implementation and Migration

The IRS prioritized minimal disruption during the transition. Legacy environments were known for their messy configurations that required extensive scripting and sync tools. Cayosoft, by contrast, offered a modern, agentless architecture explicitly designed for secure, hybrid-ready deployment.

Key Deployment Benefits:

  • Unified Web-Based Console for AD, Exchange, Entra ID, and Microsoft 365
  • No Additional Sync Layer Required (unlike Quest’s overlap with Azure AD Connect)
  • Declarative Rule-Based Automation replacing PowerShell scripts
  • Real-Time Change Auditing and Rollback with Cayosoft Guardian
  • Instant Forest Recovery with a clean stand-by, so there’s no chance for re‑infection

“The migration was easier than expected. Cayosoft service was responsive, transparent, and the product just worked—no consultants, no drawn‑out rollout.”

— IRS Systems Architect

Business Outcomes

Improved Operational Efficiency

The switch to Cayosoft led to a dramatic simplification of identity lifecycle management.

  • Legacy scripts and custom workflows eliminated
  • Dozens of manual steps collapsed into rule-based automation
  • Over 80 legacy policies reduced to just two Cayosoft rules

Enhanced Security and Compliance

With Zero Trust delegation, RBAC enforcement, and built-in audit trails, Cayosoft significantly raised the security baseline.

  • Virtual Organizational Units (vOUs) provided safe delegation without domain admin rights
  • Immutable auditing and alerting ensured compliance with federal standards like FISMA, NIST, and IRS Publication 1075
  • Instant rollback capabilities reduced risk during misconfigurations or unauthorized changes

Faster User Onboarding and User Deprovisioning

The IRS streamlined provisioning and license assignment across both on-prem and cloud environments using HR-driven automation and dynamic role‑based logic.

  • New hires are productive on day one
  • Departing users are deprovisioned instantly and securely
  • Office 365 licenses are reclaimed automatically

Cost Reduction and Simplified Licensing

Cayosoft replaced multiple legacy tools with one platform, eliminating overlapping software, sync engines, and hidden licensing fees.

  • New hires are productive on day one
  • Departing users are deprovisioned instantly and securely
  • Office 365 licenses are reclaimed automatically

Strategic Impact

The IRS’s move to Cayosoft signals a broader federal shift—from outdated, overpriced legacy tools to modern, hybrid-native platforms for today’s challenges.

Key Takeaways:

  • Don’t settle: Legacy tools can be stagnant and costly
  • Modernize with purpose: Choose tools that evolve and scale in hybrid environments.
  • Built-in security wins: Zero Trust and compliance must be native.
  • Total Cost of Ownership (TCO): Legacy complexity and support gaps drive hidden expenses.
  • People count: Cayosoft provided trusted support and leadership that made the difference.

“This was about more than replacing a vendor. I was about evolving our identity infrastructure to meet the next decade’s challenges. Cayosoft isn’t just a tool—it’s a platform we can build on.”

— IRS Systems Architect

Cayosoft At-a-Glance

Feature Cayosoft Legacy
Hybrid Microsoft Management Built from the ground up Bolt-on hybrid support
Automation Declarative, script‑free PowerShell-heavy
Security & Delegation Zero Trust, vOUs Complex AD permissions
Instant Recovery Forest-wide recovery in minutes Manual, batch recovery
Customer Support Direct, transparent, fast Known delays, upsells
Licensing Transparent, all‑in‑one Fragmented, audit‑prone

Final Verdict

The IRS chose Cayosoft because it did what Quest couldn’t: simplify, secure, and modernize a mission-critical environment. It delivered more value, less complexity, and proper alignment—without the baggage.

If the IRS can break free from 20 years of legacy lock-in, any agency can.

IRS Selects Cayosoft Over Quest Software
Download our Case Study

IRS Selects Cayosoft Over Quest Software

Download Case Study

Ready to modernize and build resiliency?

Join the growing list of federal, state, and enterprise customers switching to Cayosoft. Schedule a demo and see why Cayosoft is the future of hybrid Microsoft identity management.
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