The Cloud Identity problems faced by companies are being solved by using virtualized directories. The virtualized directories are essentially servers that act over enterprise directory resources, and this allows users to carry their identities on the premises into the cloud. Top companies such as Radiant Logic and Amazon have entered the race to supply these virtual directories, which enable enterprise identities available in the cloud. A Radiant Logic spokesperson claimed that the virtual directories created by the company safely links cloud based apps with all the enterprise identity sources. Optimal IdM's Virtual Identity Server Federation Services and Quest Software's Symlabs are the other third party companies which are active in serving the virtual directories. Amazon Web Services also announced the expansion of its Identity and Access Management service, which federates enterprise directories into a virtual directory.

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