A centralized IAM system is a common approach where all identity and access management functions are centralized in a single location or region. This architecture is typically easier to manage and secure, with streamlined identity management and simplified user access. However, it can become a bottleneck if the database is not designed for horizontal scaling, leading to potential downtime and security threats. In contrast, a distributed IAM system is more modern and scalable, where identity and access management functions are distributed across multiple regions or locations. This approach offers improved scalability and reduced latency, but can be more complex to manage and secure, requiring a solid foundation for the IAM data in a purpose-built database with enterprise-grade security. Ultimately, the choice between these approaches depends on the specific needs of the organization, including its size, geography, and compliance requirements.