The software is now slated to ship between January and March 2010, a slip that has angered some partners and users.

Some analysts, however, say Microsoft needs the time to ensure the product is right given the important role it plays in the identity infrastructure.

ILM is Microsoft's platform for identity synchronization, certificate and password management, and user provisioning. It has four areas of focus: policy, credential, user and group management.

ILM was originally called Microsoft Identity Integration Server and was the company's meta-directory technology, which it purchased from Zoomit in 1999.

The 2.0 version includes a number of user self-service features, such as password reset. It also includes a new delegation model, a business process framework, "code-less" provisioning, and a set of services that users and partners can tap to extend the server's functionality. ILM 2.0 also integrates its group management, workflow, and other features with SharePoint and Outlook.