The shift from monolithic to microservice architecture and cloud infrastructure often makes traditional session-based Identity and Access Management Systems (IAM) inadequate. This paper explores token-based authentication as a solution, using tokens as dynamic credentials to enhance security and scalability. Token-based systems separate authentication and authorization, enabling stateless communication and reducing reliance on centralized session storage. The paper discusses benefits and liabilities of Token-Based Identity And Access Management using the Pattern format. It is targeted at software architects and decision makers to enable them to decide between a traditional session-based solution and a token-based approach.